Glossary

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.

Approval Acknowledgement: This form will be sent to the buyer along with a copy of the appraisal report acknowledging buyer was provided a copy of the appraisal.

Approval Package: Once approved, the buyer and agent (if applicable) will receive an Approval Package containing forms to fill out and return to your processor. These include Borrower Signature Authorization (BSA), Mortgage Loan Origination Agreement (MLOA), Park Approval, Person to Person Seller Interview, Approval Acknowledgement, Purchase Order, and Request for tax transcript (4506-T).

Balance Sheet: Must be completed for all self employed or 1099 paid employees

Bankruptcy: can affect a buyer’s ability to obtain a manufactured home loan for 7 to 10 years from the date discharged. Affects down payment requirement.

Borrower: The applicant (“buyer”) of the manufactured home loan.

Borrower Signature Authorization (BSA): Borrower completes this form giving us authority to obtain employment information

Broker: The firm that goes between the customer/agent and the lender to aid a timely loan application to funding process. Santiago Financial, Inc. is your broker.

Buyer’s agent: Real estate professional or Mobile Home Dealer who represents the buyer throughout the transaction.

Buy for: You can have a relative or friend buy the home you want for you if they have better credit than you or have a better chance of getting approved. This means that the loan and title will be in their name, but you can decide on a payment transfer plan with the purchaser where you gift the monthly payment money to them and they pass it on to the lender. The buyer must be a homeowner prior to the application for the loan and the minimum down payment is 20% of the sales price. Additionally, a 1003 form must be filled out with the information of the occupants.The park management must approve of the Buy For.

Cash out refinance:  Taking equity from your home in the form of cash for the purpose of home improvements, as well as other uses as permitted by the lender. To be approved for a cash out refinance, the customer must have a 700+ FICO score. The limit is $25,000.

Cash to Close: The total amount that the buyer must bring in of their own down payment for the loan to fund. I.e., down payment, all non financed closing cost.

Chattel Loan (Consumer Loan): A manufactured home loan in a rental or lease manufactured home park.

Clear title: Title to a home that does not have any liens against it.

Co-buyer: An additional buyer of the home, in some cases there can be multiple co-buyers. A cosigner is not the same as a co-buyer. A co-buyer assumes equal financial responsibility for the loan and is required to live in the home. Whereas a co-signer is simply on the loan as collateral.

Comparable Sales Report Request: Request for comparable sales report in a specific park or area.

Co-Signer: Does not live in the home. Is only allowed if the buyer has zero or limited credit history. Both Buyer and Co-Signer must qualify for the payment on their own.

Co-op park: A type of park that involves group ownership and shares. All members of the community own both their house and a share of the assets of that community. We can only lend in a Co-Op if the community is willing to list the lender 1st on the share.

Counter offer: Sometimes the lender will respond to a buyer’s application with a counter-offer. This means that the lender is willing to lend to the buyer, but with a different amount or with changes to conditions. Once received, Santiago Financial will inform the buyer or agent. If the buyer accepts the counter-offer, a relook will be sent to the lender accepting the offer. The lender will send the approval information within 24 to 48 hours, excluding weekends and holidays.

Credit Report: A record of how an individual has paid back credit in the past. Used to show a customer’s creditworthiness.

Credit/FICO Score: A numerical score derived from a person’s credit report that is used by lenders and brokers as an indication of how likely a customer is to pay back a loan.

Debt consolidation refinance: Debt consolidation refinances is using the equity of your home to create one payment of debts rather than multiple. For example, if you have three credit cards with $8,000 on each, a debt consolidation would group them together to be a $24,000 debt, with one payment proportionate to the debt. Customers will be asked which debts they wish to consolidate early in the application process.

Debt to income ratio (DTI): A comparison of current debt payments and proposed home purchase compared to the buyer’s income (bills, loan payments, child support, alimony, etc) to help determine an applicant’s loan qualification.

Employment History Form: To be completed if the buyer(s) have fewer than two years on a single job or if they are using overtime pay to qualify the buyer(s).

Escrow: An escrow company is a neutral third party between the buyer and seller that mediates the money involved in the sale of a home. Escrow is the time period between the signing of the purchase agreement and the loan closing.

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

Gift Letter: If any portion of the down payment is a gift, the “gifter” is required to complete, sign, and date this form.

Housing Ratio: A comparison of the estimated monthly mortgage payment and any space rent/HOA fees to the buyer’s income expressed as a percentage.

HUD: Manufactured home built after June 13, 1976.

Insurance Quote Request: Request for an insurance quote on a specific home

ITIN Number: a number supplied by the Federal government to non-citizens in lieu of a Social Security number for the sole purpose of the filing taxes with IRS. In order to use an ITIN to obtain a manufactured home loan the same number must be reflected on all income documents (paystubs, W2’s, tax returns, etc.).

Land/Home combination: Financing a piece of land and a manufactured home in one mortgage.

Loan Term: The number of expected payments to be made throughout the length of the loan.

Mortgage Loan Origination Agreement (MLOA): Borrower completes bottom section acknowledging that Santiago Financial, Inc. is their broker

Park Approval: Written confirmation that borrower is approved to live in the park. The form is to be given to and completed by the park manager.

Person to Person Seller Interview: To be completed by the seller or their agent. The entire top portion is required and must include two phone numbers.

Points: 1 point is equivalent to 1 percent of the loan amount

Pre-approval: Conditional approval that our lender will loan a potential buyer a fixed dollar amount as long as the home is purchased before the pre-approval document expires, the home appraises around the correct sales price, the income verifies as stated on the application, and all conditions are met.

Pre-HUD: Manufactured home built before June 13, 1976. Requires 20-25% for down payment.

Prepayment Penalty: A charge to the buyer if the loan is paid prior to meeting their full term.

Profit and Loss: Must be completed for all self-employed or 1099 paid employees.

Purchase Order: The contract between buyer and seller for the manufactured home transaction. Usually this form is only used when there is not an agent involved in the transaction.

Rate term refinance: A rate term refinance means that the lender will give you a different interest rate, term, or both, depending on what is requested. It can be provided for up to 95% of the original sales price or appraised value, whichever is less. Just the same as purchases, rates cannot be guaranteed by the broker (Santiago Financial), and is up to the discretion of the lender.

Request for Tax Transcripts 4506-T: 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.

Retailer Disclosure: Form to be completed by dealer selling a New home.

Tax and Insurance Impounds: A percentage of the annual insurance premium and property taxes that the lender collects each month, held in a trust account to be used towards the following and/or future annual payments.

Title Search: A document Escrow request from the state to obtain all home information and to verify if their are any current liens against the property.

W-9: In case the borrower has lost their Social Security Card, this is to be completed and signed. This form can be used as a substitute