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Mobile home and land package - lender is requiring we sell our current home before funding loan or give larger down payment

My husband and I own our current home. We don’t have a mortgage.

We are in the process of purchasing a mobile home and land package, and when we filled out our application we included the information for our existing home and there’s a section that asks what we will do with the home, we said we were going to sell it. We didn’t realize that was going to be such a problem.

Our down payment is not coming from the sale of our current home, we listed the bank account information for the account that the down payment is coming from.

The lender has included that we must provide proof of the sale of our current home in the conditions to be met before the loan is funded.

The issue is that we live in our house and didn’t intend to sell it until after we had moved into the new home. When I spoke with the lender about this they suggested we move out now and rent a home, but that doesn’t resolve the issue that our home may not even sell that quickly. The lender also said we could increase our down payment to 20% (another $15k) and they will waive the requirement for us to sell our current home.

The lender expressed that they don’t care if it takes a year between closing and funding the loan while we wait for our current home to sell. But we have the land under contract for 90 days - so if the loan isn’t funded in 90 days do we lose the land?

Also, we would be paying for a rental property and need to pay for storage for some of our stuff depending on the size of the rental. So, more money out of pocket.

We could potentially come up with an additional $15k to waive the requirement to have our home sold, but we’d have to sell both of our vehicles and buy cheaper vehicles to commute to work - I’ll add that we already own older vehicles so we’ll likely end up having to buy cars that need repairs to be reliable… more money out of pocket.

Can they require we sell our current home? It needs some work, and there’s no guarantee that it would sell immediately. We were going to fix some things before listing, but wanted to be moved out of the home first.

We are already putting down 15% ($44,800) and it’s taken time to save this money.

Our main concern is losing the land in this deal if the financing drags beyond the 90 days given for the land contract. We are trying to move to a specific area and had a hell of a time finding this property and it could be a while before another suitable property shows up.

submitted by /u/Smooth-Concern1369
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/13u22yx/mobile_home_and_land_package_lender_is_requiring/
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