I recently had a buyer client who wanted to buy a manufactured home.
He was a banker, so he had friends in the lending business. He asked his good friend to be his mortgage broker.
The lender was out of the area. He was based in Phoenix, and the manufactured home was near Prescott.
The lender mostly did conventional loans on conventional real estate.
I suggested a local lender that knows the area, but he insisted on using his friend.
The manufactured home was in an unincorporated area, on a septic system, and used hauled water instead of a well, or city water.
All of those are red flags to lenders.
I asked him again to consider a local mortgage broker, but he insisted on using his friend.
As we went through the buying process, we had to change lenders, and extend the close of escrow, because the original lender didn’t approve of some of the details of the property.
When we got down to the day before close of escrow, the new lender did a final review.
They rejected the property because it used hauled water.
The lender wasn’t familiar with that “minor detail”, so he missed it, and the deal blew up.
My client didn’t get the home. The seller was mad. No one was a winner that day.