Manufactured Homes

[willtygart]

O.K. now all of you people that are living in New York City this is NOT a post for you!

 

This is a post for those of you throughout the country that are looking at buying a manufactured home. Manufactured homes can be a fast and a very cost effective way to "build" a home. For the square footage and features that they offer you can get a lot of house for sure. The old 2x2 construction is long gone and 2x6 construction is not uncommon.

 

I am not here to tell you that a Manufactured home is not a value...but rather to give you a lenders prospective on that type of home. For the most part on my conforming deals I can lend up to 100% of the value on the home if it meets specific guidelines and your credit is good. This is tricky though, any specialized program or non conforming program usually caps me out at 75-85 ltv (loan to value) on the house.

 

The higher you go on this LTV , the higher the rate usually is. Getting a HELOC or a second on a manufactued home is hard as well. Before I get the posts...I did not say impossible, I said hard. Looking down the road.......having a manufactured home will limit you from getting the most equity out of your home (which is not a BAD thing....since I do not recomend on avaerage going above 85% LTV on your home anyway) and will bump you out of several "better rate" programs available.

 

I do not know how important of a fact this is to people but it is normally not discussed in the showroom when you are wowed by the price of the home. If you have any questions about Manufactured Homes please post them and I will try to help.

[robbenmel]

Hey, I am so glad I found this thread! We own a 2000 sq ft manufactured home on five acres of land. The land is owner-financed at 12%, and the house itself has my mom as the primary borrower, at 10.99%. We've been here (north central Florida) for five years. Total bill for the house and land right now is ~ $65k. It will probably appraise for about that.

 

We want to refi the whole thing as one package in the next year to 18 months. Our credit is clean as a whistle for the last four years, but we still have a few dings out there from "before" (which is why my mother is the borrower of record on our house), the most severe being a paid judgment from 11/98. DH's cr does list the house tl, but mine doesn't. Our FICOs are hovering in the 600 range, but I expect that to rise as we pay off our three ccs in the next five months.

 

How difficult do you think this refi will be?

[willtygart]

Title eliminate the property, make sure that it has tie downs and concrete runner. If it is older then 76 and is a double wide then you want to go with a Fannie Mae community 100,97, or 100 plus. You can rate term refi (no cash out) the property RIGHT NOW and have a rate that is around 6 percent. You will have Mortgage Insurance but wont be high with that amount. With your loan amount...go to your local bank, preferably Wells Fargo....and ask for their ENMP program (same thing, wells fargo name) and if your income falls into place (cant make too much money) then you are a virtual shoe in. This is an EXCEPTION and kind of condradicts what i posted but give her a swing!

[NeedItNow]

Manufactured homes can be a fast and a very cost effective way to "build" a home. For the square footage and features that they offer you can get a lot of house for sure.

 

Can I get one with dual exaust and chrome wheels?

[robbenmel]

willtygart: Thanks so much for your answer! Here's a little more info:

 

The house was built in 1998, and is a doublewide. It's tied down six ways from Sunday, but there's no concrete under it (I don't think that's SOP in this area.) Our combined gross income is $67K. I don't think we have a Wells Fargo in this area.

 

What's title eliminate? What's ENMP?

[robbenmel]

Bump for willtygart...or anybody else who wants to chime in.

[fla-tan]

willtygart: Thanks so much for your answer! Here's a little more info:

 

The house was built in 1998, and is a doublewide. It's tied down six ways from Sunday, but there's no concrete under it (I don't think that's SOP in this area.) Our combined gross income is $67K. I don't think we have a Wells Fargo in this area.

 

What's title eliminate? What's ENMP?

 

rob

 

I am not an expert on manufactured housing, however to my limited understanding, unless a manufactured home is on a permanent foundation, it is considered a mobile home and will not qualify for either FHA or conventional financing. You may want to contact a couple of manufactured home dealers in your area to get their imput.

 

 

fla-tan

[want2own]

Don't know on the title eliminate part, but EMNP stands for "Emerging Markets National Program" and if I understood the information passed on to me, it's an FHA-mimic type program??

 

Sorry, hopefully one of the more knowledgeable members will pipe up with more details!

 

JL

[louey]

pre 1976 is called mobile homes, after 1976 they are called manufactrued homes. an excellent site to check out is mobilehome.com

the site was down yesterday, hopefully it will be back up today.

[willtygart]

have to have concrete runners/tie downs on a man factured home in oirder to do a conforming (good rate) program. And as fars as wells fargo, any broker can have access to wells fargo wholesale and can do this program. Title eliminated is where you eliminate the "license plate" of the home and combine it witht he land its on and now the home/land is real property. if you pay two tax bills, one for land one for home, then it has NOT been title eliminated.

[robbenmel]

I see I have more studying to do. Y'all, thanks so much. I think my next step is to call a local mortgage broker...I know there are several who advertise just such refi's as I was thinking of.

 

Is it normal procedure to call such a person and just ask general questions about the process? Or is this taking unfair advantage of their professional time, if I'm not planning to do anything right now?

[cre8ivegrl]

willtygart... are lenders for MHs similar to lenders for stick builts in terms of downpayment? I am speaking as far as rules. Do MH lenders care where the down comes from, how long it's been in your account, etc.?

 

What constitutes good credit for MH lenders?

 

Thanks!

Shelley

[louey]

any one interested in a manufactured home please check this forum out

 

http://mobilehome.com/discus/list.php?f=3&t=3198&a=2

 

just click on forums and refresh it.

 

i have been going there for about a year, i wanted to be very aware of what i was doing this time, my 3rd manufactured home.

and i loved my first one, hated my second one(poorly installed) and am going thru the process for my mortgage now for my 3rd.

[willtygart]

I was reading through all of the old posts "stealing" some of my posts back to put on my forum and I saw this one. A couple of months backa bunch of lenders stopped lending on manufactured homes all at once. Fannie Mae gudelines changed and there just wasn't the lending there that was once available. There are still VA and other programs available but I would say 60% of the financing stopped altogether...something to think about when wanting to buy a Manufactured Home. :wink:

[Hideous]

what about modular homes ? what are they ? if i heard right they are basically built in like a factory in bigger parts then trucked and final assembly takes place on site. is this right ? and it so are they concidered maufactured or stick built ?

[degafan]

I was reading through all of the old posts "stealing" some of my posts back to put on my forum and I saw this one. A couple of months backa bunch of lenders stopped lending on manufactured homes all at once. Fannie Mae gudelines changed and there just wasn't the lending there that was once available. There are still VA and other programs available but I would say 60% of the financing stopped altogether...something to think about when wanting to buy a Manufactured Home. :wink:

 

Well, that explains something. In June, I found a double wide that I really want. It's bigger than the house we built that caused us to kill our credit. Anyway, the salesman was a really likable guy...in a drunken sort of way. I told him our credit situation and that we had a discharged ch7. He said no problem. When you want me to pull your credit just let me know, if there's anything that's going to prevent you from buying this home, I'll see if I can help you repair it. (No, I didn't believe all of his bs but some of it sounded promising).

 

so I went back in mid July and told him I was ready for him to pull my credit and tell me what I needed to do to get that home. He stalled and said it would take a couple of weeks (apparently he doesn't know about this board and that I pull my credit (or at least PGs version) everyday.

 

Two weeks later I go back and he tells me he pulled my credit and he cant help me right now. :twisted: As I said, I check my credit every day. No one has pulled my credit. The whole thing was weird. It was obvious he was lying but I couldn't figure out why.

[willtygart]

This nipped me in the butt actually as I went searching my normal lenders for a manufactured home loan only to find out the guidelines ahd changed almost over night! This puts a crimp on the man factured home lending but does NOT throw you out of conforming at all..just limits the number of options.

[BizCredit]

will:

 

I understood from real estate school ( I am a licensed broker) as well as appraisers that I know etc., that once a modular home is built and placed on site, it is the exact same thing as if it was stick built on that site the old-fashioned way... as far as appraisal... as far as a bank is concerned...

 

so....

 

do you disagree with this? or is there a difference between "manufactured" and "modular"??

 

also, there are modulars in NYC. the reason why people dont usually puot them there is because the NYC Codes make it much harder to make it cost efficient.

[willtygart]

You tread a fine line with modular and manufactured. Manufactured homes come on wheels, and there are specific differences. You CAN title eliminate (get rid of the license plate, which Manufactured homes come with) the manufactured home and combine it with the land to make REAL Property but in a lenders eyes it is still a manufactured home. Once again, modular is different, and is not the same as a manufactured home. :wink:

[Hideous]

thanks for answering my question guys about modulars

[psp]

I've been following this thread closely, as my kids are interested in a manufactured home. DD's credit sux, mostly medical, delays in ins payments, etc. Helping SIL with his and starting DD's. They are in a community property state, so I'm assuming DD's credit will be checked as well. They have found some land, and would like to do a package deal.

Any hopes for them in the near future? TIA

[fla-tan]

will:

 

I understood from real estate school ( I am a licensed broker) as well as appraisers that I know etc., that once a modular home is built and placed on site, it is the exact same thing as if it was stick built on that site the old-fashioned way... as far as appraisal... as far as a bank is concerned...BHMH you are correct. Once a modular home is finished and has it's COO (Certificate of Occupancy), it is treated the same as a stick-built home. Modular homes can be transported to the construction site on trailers, but I have never seen the sections have wheels attached to them. Many times, modular homes will be a combination of at least 2-3 modules. Manufactured homes on the other hand, are always transposted to the site attached to wheels and when they are fixed to a site, the wheels and axles are removed.

 

so....

 

do you disagree with this? or is there a difference between "manufactured" and "modular"??

 

also, there are modulars in NYC. the reason why people dont usually puot them there is because the NYC Codes make it much harder to make it cost efficient.

 

 

fla-tan

[BizCredit]

so.. therefore... doesn;t it stand to reason...

 

that I can buy a lot, plunk down a modular on it, sell it or refi it rightaway, and the fact that it's a modular the house will appriase as a stcik built, and collect some $$ out by either selling or reefi-ing based on values of local stick-builts?

[willtygart]

Yes...although yer not gonna pay mobile home prices for a modular home.....but it will be appraised as a regular home. I don't know if you will be able to "flip" a modular home with land......as a buyer should know that he/she could purchase land and do the same while customizing the home to what they want. If Time is what you are looking at I would look into getting a Panel home built on a lot as it can be done very quickly.

[BizCredit]

do you have any more info on panel homes?

 

are they cheaper/faster then regular construction?

 

whay are you never on AIM/MSN anymore, btw?