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REAL ESTATE Lonnie deal then no first time home buyer status?

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Sid23

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Anyone know if I do a "Lonnie Deal" and buy/sell a mobile home and finance the sale, if that would remove my first time home buyer status?

My wife and I are going to buy a home this year and I want to make sure this doesn't disqualify us from an FHA loan (3% down) or other first time home buyer incentives.

Anyone have any experience with this?
 

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kwerner

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Not certain about this, but I would think that if you are doing a traditional Lonnie deal, i.e. buying a mobile home that's in a park (not on its own land nor on a foundation) that you would be okay because a mobile home in a park isn't considered "real estate", but personal property.
 

StreetsofSilver

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Talk to a mortgage broker in your state to be sure. Most states consider mobile homes to be vehicles unless it has a concrete slab basement.

FHA loans aren't just for first time home buyers. It can only be used for owner occupants and you can't have more than one outstanding FHA mortgage with a loan to value of higher than 75%. You can own rental property and purchase your primary residence using FHA mortgage financing.
 
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Sid23

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As an aside, I just read that to finance mobile homes in Minnesota, you need to have a dealers license, which you can only get after 2 years of having a real estate license. So that may stop this idea dead in its tracks.
 

Runum

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As an aside, I just read that to finance mobile homes in Minnesota, you need to have a dealers license, which you can only get after 2 years of having a real estate license. So that may stop this idea dead in its tracks.
Interesting, would that also include lease to own?
 

G_Alexander

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Interesting, would that also include lease to own?
No Runum, you make a good point. It does not include lease/rent to own.

Sid, if you do not mind being a "Land Lord" then you can still definitely do the deal with a lease to own option. You will just have to have insurance in your name the whole time, pay the property taxes and help your tenants with any issues at the home.

Since you are young and moving into the apartment market next it might be a good thing to try, and you will still double your cash.

Lonnie talks about it in the end of his eBook, so if you bought that thing today like you were contemplating, make sure you read on the lease/rent to own section near the end of the book. He says it is very profitable, no dealer license required, but you have to be willing to deal with a tenant!

G. Alexander
 

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