We have lived in a rental house for almost 30 years. A couple of years ago the landlord offered us the opportunity to purchase the house at a price well below the value.
The house is on 1.5 acres in a rural area. It qualifies for a USDA loan. So far so good, right? Here's the problem, many years ago a portion of the land was set up as a mobile home lot and the landlord rented the space. Several years ago someone rented the lot space and moved the mobile home to the land. When this person decided to move they sold the mobile home to a third party without the approval of the landlord. Two years ago the purchaser of the mobile home passed away and his grandson and family moved into the mobile home.
In addition to this occupied mobile home there is also an old mobile home on the lot that is in very poor condition. This mobile home is owned by the landlord and was used for storage. Currently, the only thing holding it up are a couple of trees that have grown up on either side.
I have talked with several mortgage lenders and when I tell them there are mobile homes on the land they tell me that they can't provide me with a mortgage. I am looking for alternative financing.
The house is more than 60 years old and needs new wiring, plumbing, HVAC and insulation. The roof also needs replacing. I am wondering if I would be better off getting a rehab loan to purchase the property, rehab the house, remove the trailers and other outbuildings and then sell for a profit.
Our credit is good I have a car loan that will be paid off in about 10 months. I have one bank credit card with a zero balance because I pay it off every month that I use it unless I have made a big purchase that is paid off within the time frame for no interest charges. I also have two store credit cards also with zero balances. The only problem is that we don't have a long credit history. We don't buy things we don't need, we keep our vehicles until they are no longer serviceable. My husband drives a 2007 Kia with close to 200,000 miles. I have a 2014 Nissan with less than 40,000 miles.
Suggestions anyone? By the way we are 72 years old and 64 years old, my husband still works full time and I am on disability.