If any group deserves the $8,000 tax credit, I think people moving from a POS trailer, not on a foundation, on a rented lot, SHOULD!!!
This group has been left in the dust I think, and they have some of the hardest time making the move up. They think their trailer is worth more than it is, old trailers are nearly impossible to finance if they can find a buyer, and they want to live in a home with a real foundation and a yard.
I think this particular buyer has a definite place in the first time home buyer market-place. Some of the folks I'm dealing with qualify for a decent home, they have the down-payment and they have a buyer for their trailer, but they do not benefit from the tax credit.
Is a renter a better first time home buyer than someone who has owned a trailer? I can't value a trailer (mobile) as Real Estate.
The Quilting Realtor
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Many Dream Of Living In Montana I'm One of the Lucky One's That Already Do! Wanda Thomas Call or Text 406-698-8640 for help with all things Montana. |
Wanda, interesting post. I was unaware that a trailer situated in a rental park constituted 'real estate' unless the owner of the trailer had a mortage on the home.
I just had a lender turn a client down for a bridge loan because of this, I looked up the form and there it is, a MAIN home can be a housetrailer, even a houseboat?
Wanda,
If they live in a mobile home that is affixed to the land, in Arizona we file an affidavit of affixture with the county and the property is taxed as real estate. In this example your clients would not be a first time homebuyer in our state.
As far as your clients go, in Montana...Owning personal property (mobile home) that sits on a leased land (in a trailer park?) - I am not sure. If the property is not taxed as real estate, the loan on the trailer may be considered a consumer loan (and not a mortgage).
There may be a fine line, and I woud check with the county to see if the property is taxes as real estate, then call some lenders familiar with housing in your community to see if that trailer has a "mortgage" or a "consumer loan". Then, advise your clients to go to a tax advisor (armed with that information) to see if they can qualify for the first time homebuyer tax credit.
I just looked at the IRS' definition of a first time homebuyer and you are right - better not mess with technical definitions if it involvs the government.
bridge loans are difficult to come by even when the collateral is a stick built home. This is because of liquidity issues in the capital markets these days. I am finding fewer lenders willing to do them, and when they do, it's hard money at 50% LTV and high interest rates.
Wanda,
I hadn't thought about that before. You are so right. What a victory to move from a trailer to a home. They shouldn't be kept from getting what every other first-time homebuyer is being offered.
Wanda,
Some of the worst homes I see are in that category of mobiles in the woods.