# Will i be able to get loan for RTM house?



## tyson12 (Aug 20, 2013)

RTM (ready to move house) are increasingly in demand now. They are big enough and they fits in my budget too. 
Are there any banks available in Saskatoon, which will provide me with loan to buy a rtm house?


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## MrMatt (Dec 21, 2011)

tyson12 said:


> RTM (ready to move house) are increasingly in demand now. They are big enough and they fits in my budget too.
> Are there any banks available in Saskatoon, which will provide me with loan to buy a rtm house?


I'd assume any bank would, have you asked?


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## Just a Guy (Mar 27, 2012)

Where are you putting it? On your own land or in a trailer park?

If it's on your own land, a bank would probably have less issues. If it's in a park, they'd factor in the other costs (pad fee, etc) into seeing if you could afford it. Plus, since you don't own the land, there is much less equity and stability (since the park owner could technically sell at any time, forcing you to move the building). 

Never understood why you'd want to pay for a building only to rent the place where it stood. Not really "home ownership".


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## sags (May 15, 2010)

If you are talking about a house on wheels...........most banks won't give a standard mortgage on them.

If they will finance the purchase, it will be at higher rates..........closer to personal loan rates.


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## MRT (Apr 8, 2013)

With pre-fabricated, mobile, RTM, etc. homes, the big lenders typically have certain requirements.

You usually must own the land. Leased land, unless it is a long-term gov't lease (e.g. Toronto Island), is generally not acceptable. In some rarer cases, a long-term lease in ok, and the 'rent' is added to the qualification process as a monthly expense.

The home must be anchored to some sort of permanent foundation (i.e. the home can't be truly 'mobile') and be inhabitable year-round (otherwise it may be considered a vacation home, which has unique qualification criteria).

If you are buying the land and the home in separate transactions, they may need to be coordinated (i.e. the lender may not advance any funds until the home is in place, secured, etc. - they won't provide $ in advance to secure the lot, then have the home moved there, etc). 

Check with any of the big banks/lenders. If your situation doesn't meet the above, you may need to check with local/regional lenders, like credit unions, who are more familiar with the immediate local market and might have somewhat customized lending guidelines to suit such transactions. Sometimes, if lenders are leery for whatever reason, they may ask for CMHC coverage even if you're putting 20% or more down.


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## sags (May 15, 2010)

Great post MRT...........

We are inheriting some farmland that is native pasture. It could be cultivated, but never was as they retained some pasture for their cattle.

Rather than selling it........we considered getting a mortgage against it, and keeping it for the long term.

It doesn't appear that the banks are very interested in mortgaging agriculture, unless it is cultivated and produced crops for an income.

From what I understand......the only mortgage they would give..........is the value the yearly pasture "rent", would qualify for.

But, if we paid to have it cultivated..........or slapped a home on it...........a mortgage is no problem.


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## Four Pillars (Apr 5, 2009)

sags said:


> we considered getting a mortgage against it


Completely unrelated to the thread, but I'm curious as to why you want to have a mortgage on the property?


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## sags (May 15, 2010)

Four Pillars said:


> Completely unrelated to the thread, but I'm curious as to why you want to have a mortgage on the property?


Just a thought we had......to keep the land owned by my wife's family for over 50 years, so we could pass it on to our son.........while at the same time unlocking some of it's cash value. The value of farmland has been steadily rising, and will probably continue to do so into the future. 

Most of the rest of the farm has already been sold to an agricultural fund. (not by us)

The way I look at it, with only one child we will be leaving everything to him anyways........be it money or land.

We thought a combination of both might be a good idea.


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## donald (Apr 18, 2011)

Unrealted also but I personally would never purchase a rtm(not that it matters)being in the construction industry I whole hardly would choose conventional stick frame home built on site.
Rtm homes break down a lot faster than convention homes and at lest to me(astetically)one can very easily see numerous joints/seams sect(they are inferior and there is a reason why they are cheaper and it goes beyond the fact they are built in a controlled environment/reduced labour costs ect.
I'm not sure if it hold true still(admit rtms have come a long way)but when the time does come to re-sale a lot of potential buyers can be put of by the stigma of a rtm,something to atleast consider.I wouldn't buy one for a personal residence and I now a lot of other people I know wouldn't either(construction brethren)but this is of topic....it is worth it though to at least get a rough price/quote/consultation with a build on site and properly measure the 2 against each other and think hard what you are actually getting from a factory built home.


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## nobleea (Oct 11, 2013)

There's a lot of different terms bandied about. The most basic mobile homes are pretty low on the totem pole. But there are some fantasitic modular homes (modules built in factory, assembled on site) that have appeared in architecture and design magazines (Check out hive modular or Karoleena). Prefab is also used as a more general term. One of the largest builders in Edmonton has gone to strictly prefab, making all walls and roofs in a high tech plant. They get assembled on site in a couple days.
Manufactured homes are typically what you might find in trailer parks. And then RTM homes, and then modular/pre fab.


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## donald (Apr 18, 2011)

I am not that well versed in mods/pre-fabs but was going off what the op said rtm(ready to move)rtm's are just that.
Typically you don't have a basement(sometimes not even a crawl space)on rtm's.(septic ect)
They have come a long way but there is still many drawbacks.
Most of the builders your talking about(if it is the same as where live)is:the basement is still poured and set on pile's/footings and the floor joists/ beams/floor sheeting ect work is set/built on site(with electrical/mechanical/plumbing ect roughed in)than the ''packages" ie:exterior walls/interior walls/roof sections ect are craned in placed,with the finishings *still* being performed on site(cabinets/counter-tops/flooring ect)This is the new way and it cuts the frame work in half but it is far from a modular-basically the exterior shell(walls/roof)and interiors are factory built which is vastly different than rtm


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## Mall Guy (Sep 14, 2011)

doesn't the manufacturer have a banking affiliation familiar with their product who offer's financing ?


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## catherinegriffin (Aug 22, 2013)

*Rtm house*

If the bank thinks that you are qualified to take the loan for an RTM house, they will help you with the money that you need. But if the bank sees your incompetence, wage and other earnings unsuitable for the loan, you most probably will not get it.


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## Barwelle (Feb 23, 2011)

donald said:


> I am not that well versed in mods/pre-fabs but was going off what the op said rtm(ready to move)rtm's are just that.
> Typically you don't have a basement(sometimes not even a crawl space)on rtm's.(septic ect)
> They have come a long way but there is still many drawbacks.
> Most of the builders your talking about(if it is the same as where live)is:the basement is still poured and set on pile's/footings and the floor joists/ beams/floor sheeting ect work is set/built on site(with electrical/mechanical/plumbing ect roughed in)than the ''packages" ie:exterior walls/interior walls/roof sections ect are craned in placed,with the finishings *still* being performed on site(cabinets/counter-tops/flooring ect)This is the new way and it cuts the frame work in half but it is far from a modular-basically the exterior shell(walls/roof)and interiors are factory built which is vastly different than rtm


Here's my understanding of the differences, which are a little different from yours donald... I think you are mixing up prefab and RTM.

*Stick-built*: Everything is assembled on-site piece by piece. [as a sidenote, IMHO the term should be site-built, not stick-built]
*Prefab*: When the walls, floor, and roof are individually assembled on a factory, trucked to site in pieces, then the pieces are put together on site. Electrical, HVAC, plumbing, cabinets, and finishes done on-site (though there might be some rough-in at the factory)
*Ready-to-Move*: The entire house from the floor up is completed in the factory (including electrical, finishes, cabinetry, and whatever plumbing and HVAC can be done... plumbing fixtures are installed and stubbed out into the floor space), then the house is shipped to site as a whole. The only work done on-site (besides constructing the foundation) is to hook up electrical and plumbing, and install the furnace and ductwork (which around here are typically in the basement).
*Modular*: Similar to RTM, except that, instead of the house being built as one piece in the factory, it is split into two halves (or maybe 3 or 4 pieces if it's a big house) that are spliced together on-site. (You can also see apartment/condo buildings that are modular, where each unit is built individually in a factory, and then assembled on-site)
*Mobile home (trailer)*: These are single-level homes that have a permanent steel frame on the bottom for transportation so that you can throw on a couple of axles, remove the skirting, hook it up to a truck and tow it away.

RTM is *not* a mobile home. It's designed to be permanently installed on a foundation. Mobile homes are temporary in the sense that you can move it around with just a little bit of work. Around here, site-built homes usually have basements, and so do the RTMs. The final product is no different than a site-built home. 

Therefore, to address the OP, if the bank actually knows the difference between an RTM and other houses, getting a loan for an RTM should be no different than for a traditional site-built house.

Getting permits is a little different... some of the inspection work is done by CSA or another standards agency instead of through the municipality. But the municipality and the builder should help you with that.


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## donald (Apr 18, 2011)

most sub divisions have specs one has to follow(so you need to customize off whatever stock plan the rtm company has=more more $ and I'm not 100% sure how masonry tie-ins work(this is a example of having to follow sub division protocol and meet the demands/guidelines developer has in place,not sure rtm's typically "pass")
2)you as the homeowner have to buy the lot(don't forget)contract out basement/foundation work,deal with the zonning/sewer/water/electrical hook-up ect,not a huge deal but I would say a headache for the majority and or don't even want to tread those waters
3)your likely ruduced to rural because like mentioned above(unless you have connections)obtaining a lot in a typical sub-division is not generally sold on the "open" market.
4)there are headaches to this and at the end of the day is it worth it?im not sure?
People see a rtm selling for 200k,but....you have to buy a lot,contract out the initial stages and in the vast majority of cases have to have the rtm pass guidelines ect and likely even if passed likely have to customize the rtm house(which completely IMO depletes the entire point)
also will the bank require a dual loan/construction mortgage because there is 2 part outlay?
Stick frame is a framing carpenter term/lingo prob not the correct terminology
There is a lot to consider on rtm purchase.


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## MRT (Apr 8, 2013)

Barwelle said:


> Here's my understanding of the differences, which are a little different from yours donald... I think you are mixing up prefab and RTM.
> 
> ...
> Therefore, to address the OP, if the bank actually knows the difference between an RTM and other houses, getting a loan for an RTM should be no different than for a traditional site-built house.
> ...


yes and no. It can require a bit more work to coordinate the timing of what may be separate transactions for the RTM home and the land on which it is built.

With a traditional new construction, the developer generally also owns the land. They sell the lot along with the home in one transaction, so the buyer comes up with whatever deposit is contracted, and the lender advances mortgage funds upon completion. Simple.

With RTM, the builder may have nothing to do with the land, and it may be two separate transactions to complete the purchase of both. Unless the buyer has cash or credit to buy the land outright, they may need to coordinate the closing date for the land with that of the home, providing both contracts to the lender. 

If this is the case, the buyer may needs to come up with whatever deposits needed to secure the land AND to have the builder construct and deliver the home. Typically, the lender only advances funds when the home is already anchored and legal occupancy is granted. This is usually easy when it is a mobile or prefab that just needs to be anchored, but if a basement or deep foundation is being built for a RTM home, the land may need to be purchased beforehand and lenders generally do not advance funds for vacant land.

Given the increasing popularity of RTM, this isn't some huge obstacle, but it likely will be a somewhat different process than a traditional new construction. If RTM is particularly common in the OP's area, local lenders and banks are almost certainly aware of that and will have clear guidelines in place. I would just clear all of that with a lender before I sign anything with the builder and/or landowner.


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## Rusty O'Toole (Feb 1, 2012)

RTM or modular homes are built to the same building code as a site built house. In some ways they are stronger, as having steel beams under the floor (necessary for transportation, but remain as extra reinforcement).

They can be put on a basement, foundation or slab. Can be financed the same as any house.

Mobile home on a leased lot counts as personal property not real estate. You have to get a chattel mortgage (like a car loan). Therefore financing is not offered by as many lenders, and interest rates are higher.


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## tyson12 (Aug 20, 2013)

Just a Guy said:


> Where are you putting it? On your own land or in a trailer park?
> 
> If it's on your own land, a bank would probably have less issues. If it's in a park, they'd factor in the other costs (pad fee, etc) into seeing if you could afford it. Plus, since you don't own the land, there is much less equity and stability (since the park owner could technically sell at any time, forcing you to move the building).
> 
> Never understood why you'd want to pay for a building only to rent the place where it stood. Not really "home ownership".


Im putting it on my own land. My budget is tight so i opted for a RTM home.


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