Mobile Home Equity Loans

Mobile Home definition - In order for a mobile home to qualify for a WRCU mobile home loan it must:

  • Be located in the State of Vermont, the primary residence of, and occupied by the owner/member.
  • Be set on a gravel or cement pad
  • Have its wheels and hitch removed
  • Must have skirting installed between its base and the pad
  • No loans will be made for mobile homes built before 1977.

Uniform Commercial Code (UCC) – A UCC filing will be done referencing the serial number of the mobile home and be effective for a duration of 30 years or until released. The fee for this filing will be collected from the member.

Appraisal & Credit Report Fees – If an appraisal is required, the cost of the appraisal shall be collected from the member at the time the loan is closed.

Loan-to-Value (LTV) – The maximum LTV for mobile home loans will not to exceed 80% as outlined in the Property Appraisals section below. The LTV calculation excludes any existing mortgages, including home equities that will be paid off with the disbursal of the new home equity.

Property Appraisals - The town appraised value, otherwise known as the municipal assessment, or a third part property appraisal may be used if it is less than 2 years old. Otherwise, a new third party property appraisal may be required.

Insurance Requirements

Homeowners Insurance – A Homeowners insurance policy must be in force naming the WRCU as the loss payee. The policy must be for a minimum of the amount of the original loan balance, or the replacement value of the structure, whichever is less.

Flood – All property shall have a flood zone determination. Flood insurance must be obtained if property is determined to be in a flood zone.

Force Placed Insurance – In the event that a borrower fails to maintain either homeowners or flood insurance, then WRCU will force place the insurance with the carrier of its choice. The borrower will be responsible for the cost of this forced placed insurance.

Title Search & Opinion - A title opinion for the mobile home and the land upon it is to reside shall be prepared covering a forty-year period.

Mortgage Deed – The Mortgage Deed shall contain a due-on-sale provision.

Credit Report – A Merged (residential) credit report will be obtained.

Note – The Note shall become due and payable in full in the event of transfer of title.

Late Fees – A late fee will be assessed when the full amount of any monthly payment is not received by the end of fifteen (15) calendar days from the date it is due. The late fee will be 5.0% of the overdue payment and interest.

Closing Requirement - The Member must agree to obtain written approval from the Credit Union prior to moving the mobile home.

Financing Costs - The Member must agree to pay all costs associated with the above requirements.

Other Terms and Conditions - Consult with a WRCU Loan Officer for other terms and conditions for a home equity using a mobile home as collateral.