We have a customer that has a three acre tract that is owner financed with a mobile home (still titled)that was giving to him. This is his homestead. He is wanting to borrower cash out money on the land to refi the owner finance balance and do improvements. I am thinking that this is going to be a Home Equity loan, but because the mobile home is still titled, and my banker is wanting to only take the land as collateral, I really don't know how to label this loan. Can you help me?

When you state "how to label this loan", which reg(s) are you referring to?

Can I do this loan as a land loan or does it have to be a Home Equity since it is his homestead?

That's going to depend on your state law. But since you do not have a security interest in the mobile home, you do not have a loan against his primary dwelling (homestead if you will) for federal regulatory purposes.

We would be processing this as a land only consumer loan.

We would process as Dan mentions. If however the mobile home was a permanent structure and not titled, (state regs probably affect this) we'd see it differently. At this point though, it's no different than a travel trailor, not real property.

And what if it was a houseboat instead?




I LOVED the Houseboat thread!