Santiago Financial Insurance Services

Did you know that Santiago Financial can help you insure your manufactured home? If you are currently financing your home, you are likely already required to insure your manufactured home and reviewing your policy for coverages and rates annually is always a good idea.  In addition, if you own your home outright, it is wise to continue your insurance coverage so you will be able to repair or rebuild in the event of a loss.  Conveniently, Santiago Financial Insurance Services offers competitive rates with top rated insurance companies.  If you finance your manufactured home with Santiago Financial, we can provide you with a quote and you can finance the first year’s premium.

Being that your manufactured home is likely one of the largest investments you will make, insuring your home and belongings is crucial. One natural disaster or accident could potentially jeopardize your home and most of your possessions, so why risk it? With our simple, free online application, there is no reason not to take the first step in insuring your new manufactured home.

Santiago Financial Insurance Services prides itself on partnering with leading insurance companies to offer comprehensive manufactured home insurance at an affordable rate. Policy coverage protects your manufactured home against sudden disasters, liability, in addition to financial loss and damage. Earthquake is also offered as optional coverage.

For your convenience, we offer free insurance quotes on our simple online application. If you should have any questions regarding insurance or applying for your free quote, please contact Lisa at lrassmy@santiagofinancial.com or (800) 232-3908 ext 112. We look forward to helping you insure your manufactured home!

What Can I Afford?

You’re interested in buying a manufactured home but as a buyer, you want to know exactly what you qualify for.

How much down do I need?

If the home was built on or before June 13, 1976, you will need 20% down and the loan term will be 15 years. If the home was built after 1976, minimum down payments start at 5 to 10 percent down with a loan term between 20 and 23 years. This example will help you calculate your down payment, loan amount, and estimated monthly payments.

As an example, you find a home for $80,000 and it was built in 2002.

Sales Price: $80,000
Down Payment %: 10%
Now we will calculate the down payment: take the sales price and multiply that by the down payment percentage in this sample that’s $8,000 down.

$80,000 x 10% = $8,000 as the down payment amount

Now subtract the down payment from your initial sales price and that will equal the total loan amount you’ll apply for with Santiago Financial.

$80,000 – $8,000 = $72,000 as the total loan amount

To calculate your estimated monthly payment, multiply the Total Loan Amount by 1%. In this case, it’s $720 a month. This is a rough estimate and that includes taxes and insurance.

$72,000 x 0.01 = $720

Let’s say your space rent is $800. Add your monthly space rent, your estimated monthly payment, and your total housing which would come out to about $1,520 per month.

$800 + $720 = $1,520 in Total Monthly Housing Costs

You need to make at least 2.5 to 3 times the housing expense to qualify.

$1,520 ÷ 35% = $4,342.86 as the Approximate Gross Income Needed

To calculate your total debt ratio, add your monthly payments for any car loans, credit card payments, other debts etc. Let’s say they total $400 for this scenario.
($1,520 + $400) ÷ 45% = $4,266.67 as the Approximate Gross Income Needed

So now we have your estimated income range needed to qualify for this example.

Estimated income range $4,342.86 – $4,266.67

Important Tips if your income is not within the estimated income range:
● Make sure you used gross income, not net income
● Look into paying off outgoing obligations
● Find a park with a lower space rent
● Increase down payment amount
● Add a co-applicant if they are to live in the home with you

The next step is to call Santiago Financial to complete your credit application and begin your approval process.

Comparable Sales

Comparable sales reports are a valuable tool in determining the value of a manufactured home in a park to sell or refinance. These reports also help appraisers to determine the value of the home that they are appraising. Lenders use comparable sales reports to confirm home values.

Sample

(Click to zoom)COMP REPORT

Order Your Report Today

Santiago Financial, Inc. provides two different options for receiving comparable sales reports– Individual Reports and Membership.

For a limited time, we are offering a FREE report to new customers. This limited offer is good until September 25, 2017. Click to order now. Individual reports are usually $25.00.

Membership for online access to the California comparable sales reports and title information reports is a quarterly paid service that allows you to receive comparable sales reports and title information reports on manufactured homes in California online. We offer membership packages for retailers, realtors, appraisers, brokers, and lenders starting at $300.

Approval Documents

  • Estimated closing statement from escrow

Provided by escrow, outlines all cost for the buyer and seller. Determines the total cash to close for the buyer.

  • One year insurance showing year, make, model, size and complete serial number of home. Also need lender to show as loss payee

Santiago Financial, Inc. has manufactured home insurance in-house for competitive rates. However, the buyer is not required to obtain insurance through Santiago Financial, Inc. but is required by law to obtain a one year policy on the home purchased. If the buyer chooses to proceed with the insurance Santiago Financial, Inc. offers, they have the option to finance the first year’s premium (depending on lender approval). Triad and CU will not finance closing costs normally.

  • Signed and Completed Santiago Credit App

Using the information provided from your initial Credit Application, Santiago Financial will generate a Uniform Residential Loan Application, also known as the 1003, for you to initial and sign.

  • Copy of Driver License
  • Copy of Social Security Card
  • Mortgage Loan Origination Agreement

Agreement of the mortgage loan origination and written acknowledgment that Santiago Financial, Inc. is the broker. The borrower(s) complete the bottom section acknowledging this information.

  • Purchase Agreement (signed by buyer & seller – no digital signatures)

Used to finalize the interest of both buyer and seller in the sale of the manufactured home.

  • Copy of Listing Agreement (only if home is listed by a mobile home dealer)

A contract between the broker and the owner of the manufactured home (mobile home dealer) granting the broker the authority to act as the owner’s agent in the sale of the property

  • Verification of Income – 2 most recent year to date paycheck stubs

The broker and lender need to verify the buyer(s) income amount(s) to be able to approve of a loan. This is because we must verify that the buyer(s) can pay the loan back.

  • Last two years W-2s

Used to determine a 2 year average. If there is a decrease in annual income, then the buyer will be required to provide a Letter of Explanation to clarify the reason for the decrease.

  • Verification of Employment – Santiago Financial to obtain

Santiago Financial must verify that the buyer(s) work at their stated jobs to clear income. They must also obtain verifications from all locations that the buyer(s) have been employed for the last 2 years. Borrower Signature Authorization Form is required to obtain any verifications.

  • Two Years Tax Return – Federal only – all Schedules

Used to clear income is a buyer is self-employed or receives a 1099

  • Source of Down Payment – 3 months complete bank statements showing entire down payment in customer`s account

Buyer(s) must prove that the entire balance of the down payment in their account for 90 days prior to the closing of the loan. If the down payment is a gift, the gifter must provide these documents, as well as a gift letter. All large deposits must be sourced.

  • Proof home sold and mortgage paid in full (if applicable)
  • Park Approval/Lease showing manager signature, space rent, and park phone number

Document that shows that the buyers are permitted to live in the mobile home park, verifies space rent amount, and is signed by the park manager.

  • Invoices (New Home)

Copies of the manufacturer’s invoices are used to determine the value of the home and final loan amount.

  • Appraisal

The amount the home is estimated to be worth by an appraiser’s physical inspection of the home. It is calculated using comparable sales for the last six months in the park or community and takes into account physical aspects of the home. This value affects the loan amount our lenders approve the buyer(s) for.

  • Copy of Title – Title Search – MCO

A document Escrow requests from the state to obtain all home information and to verify if their are any current liens against the property

  • Person to Person Seller Interview

Form to be completed with the sellers information in case of title transfer issues. Two different phone numbers are required.

  • Retailer Disclosure Form

Form to be completed by dealer selling a New home.

  • Escrow Instructions
  • Borrower Signature Form

The borrower(s) completes this form giving us authority to obtain employment information. The form includes a release of the buyer(s) signatures and  the buyer and co-buyer’s signatures.

  • Verification of Rent (if applicable)

Cancelled for the requested number of months or a letter from the landlord

  • Signed and Completed 4506 Form

The lender can request an electronic transcript of the buyers tax returns directly from the IRS to verify income. Borrower must complete entire top portion, sign, and date.

  • Auto Draft (Voided Check)
  • Loan Estimate

This document lists basic information about the estimated terms of the mortgage loan. Please note, the terms found on the Loan Estimate are only estimates.

  • Signed Broker Disclosure

A written explanation, to be signed by the buyer(s), explaining to the buyer the role that the broker plays in the transaction. Also states the fee that Santiago Financial is charging for their services.

  • Signed Appraisal Acknowledgment

This form will be sent to the buyer along with a copy of the appraisal report acknowledging the borrower(s) were provided a copy of the appraisal.

  • Tax & Insurance impounds required

An account managed by a third-party, typically a loan servicer, to collect and disburse funds on behalf of the homeowner and lender.

Manufactured Home Advantages

Cost

The cost of manufactured homes on average is less than traditional homes. Often times, the mortgage and space rent for a manufactured home is even less than renting an apartment or condominium in California. According to Zillow, the median (traditional) home value in California is $487,700. Manufactured homes cost a fraction of this price for just as much space as a traditional home and much more space than an apartment or condominium.

Customization

Many manufacturers allow customization on the layout and design of a new manufactured home. Because manufactured homes are modular (have multiple pieces that are manufactured at a factory and brought to the space), a customer has more freedom to customize than if they were to buy a traditional home that was built on-site.

Community

Manufactured homes in mobile home parks can provide a great sense of community. Afterall, a mobile home park is a community of residents that often share common facilities (pool, club house, etc). This type of neighborhood relationship is unique to private communities and manufactured homes make this type of community much more affordable and attainable.

Improvements

Many manufactured homes found for sale in parks have renovated living spaces and kitchens. These improvements are comparable to that of the comforts of a traditional home.

Location

A manufactured home can be placed just about anywhere (given the proper legal and safety constraints), whether in a park or on owned land, giving the customer full freedom to choose where they want to live. There are mobile home parks throughout California and a customer can find the location that is perfect for their budget and lifestyle.

Ownership

Manufactured homes make homeownership affordable and accessible. For residents who have previously only been able to rent apartments and condominiums, this means that the monthly amount spent on housing will now go toward owning your own home. Homeownership has never been more in reach!

Space

A manufactured home is much larger than an apartment or condominium with the same monthly payment on average. A single wide manufactured home is generally around 1,000 square feet, while a double wide can be as large as 2,300 square feet for the same or a fraction of the monthly payment on an apartment or condominium.