This applicant is currently living in his Mom and Dad’s basement suite in Fresno California. This is just temporary and the added factor in this story is that the borrower is an Iraq Veteran, and just got home recently.
He is an Aircraft Mechanic by trade in the Air Force and is looking for work as a civilian now. He has been honorably discharged due to an injury he had in Iraq, but can still work.
He is driving up to Seattle soon to go for a job interview with Boeing. Our applicant is a specialist in sheet-metal work so he should a perfect fit for working with Boeing Aviation.
In the mean time, he wants a loan to buy a mobile home or RV so their family has some place to live while they find a City or Town to settle down in for awhile. Below is the applicants information in some detail. Names and addresses changed to protect privacy of course.
For mobile home loans you can get a conventional lender to help you, or if you are trying to buy a used unit you may be able to get financing with the RV or mobile home dealership. Either way, the APR will obviously fluctuate depending on your current standing with the three major credit reporting agencies. This goes for any type of loan actually – as I a sure you are aware.
He wants to borrow close to $100,000 so he can buy a used mobile home or RV.
Type of Loan :: Mobile Home Loan for Iraq Veteran
Why do you need a loan :: I need to buy a motorhome in Fresno, Ca – my wife and I recently lost our house to foreclosure in the Riverside area of California, and we moved to Fresno to be closer to family. We are staying with relatives right now, but we want to buy a mobile home so we can be independent again. I just got back from serving in Iraq.
How Much Do You Want To Borrow? :: Between $80K – $90K
Length of Employment :: Over 6 Months
Time at Address :: Under 6 Months
Age :: Over 21
Extra Info Here – anything else that would help us get your loan approved :: I need a military loan as I was serving over in Iraq the last two years. I would like to get approved for a military loan. Can I even get a military loan for $80,000 dollars? Please help us if you can in any way possible. We really need to have a home for myself, my wife, and my 3 year old daughter Krista.
Sex :: Male
Marital Status :: Married
Ever Claimed Bankrupcty? :: No – never
What Country is Your Primary Address :: United States
What State/Province is your primary address in? :: CA
Have you checked your credit report lately? :: No
Would you consider your credit rating to be? :: Fair
Collateral? :: No
Down Payment? :: No
Do you a have co-signer or co-borrower? :: No
Experience, Background :: All military service with the United States Air Force. I was an aircraft engineer when I was in Iraq, and I’m currently looking for a job in the Fresno area. I have recently applied for a job working for Boeing in Everett Washington though. I will likely have to move allot because of the my job, so we need a mobile home or large RV to live in.
As it turns out in this case, a military loan by definition is a small loan (somewhat like a payday loan) and you can’t get payday loans in California for more than $300 at a time. Obviously, this is not the lending product this applicant needs. Even if a military loan was helpful by this definition, he wouldn’t have any luck getting approved anyway – why? Because he is no longer on active duty with the Air Force. He is technically a civilian now. You have to be on active duty to be approved for these loans. So he has to apply for a mobile home loan with a conventional banking establishment, or with the dealership he purchased the unit from.
As it turns out, there are thousands of veterans who are living in trailers, on the road, or in mobile type homes. These veterans are scrambling to adjust to civilian life, and my wife and I have personally met some of these heroes while we were travelling in Southern California staying in RV parks. We met a young man who was veteran of the Iraq war who was now a civilian and he and his young bride and daughter were living in the RV park while he was starting a new job nearby. Not a bad idea really, and not a bad thing. I was personally born and raised for the first 3 years of my life in a mobile home park in a desolate area in the North West. It was just the start of my parent’s journey in life, and with years of hard work, we managed to join the middle class – then the upper-middle-class.
So as far as final approval on the loan, our young veteran ended up buying a mobile home for $60,000 dollars in Washington. We’ll do the numbers on this financing below.
Mobile Home Loan for $60,000 – APR of 9% Over 25 Years
- Principal Loan = $60,000
- APR = 9%
- Length of term = 25 yrs
- Payment schedule = biweekly
Breakdown of Mobile Home Loan Interest
Total Amount to be paid: $127,603.59
Total amount of interest $67,603.59
Payments: $195.78
So their monthly payment on their new home is $391.56 (biweekly payment – $195.78 every 14 days) and their total interest over the 25 years is between $67,000 and $68,000. The interest rate is fairly high because our veteran has a poor credit rating. He damaged his credit when his wife lost her part time job when he was overseas fighting in Irag. Unfortunate situation, but at least they have a roof over their heads, and a place to raise their kid(s).
This mobile home was brand new, and if you have seen some of these new units these days you would be surprised at how lovely some of them can be. Our applicant is hard-working and his wife is hard-working, so they are going to be just fine.
I forgot to note that this mobile home loan was financed through the vendor and not directly through the bank – this explains the high APR of nine percent.