I received this email today and with permission am sharing our email conversation. This is a topic as you know near and dear to my heart. Manufactured homes, like FHA financing, scare people. I think it is because there are to many people out there that don't know the programs and won't take the time to learn.
Is it HUD or UBC? Answer below
From: PJ
Email: PJHOLMES@*********
Subject: HUD VS UBC
WHO DOES THE BANK LOOK TO, TO DETERMINE WHAT CLASS THE HOME IS IN?? IS THE TAG THE ONLY DETERMINING FACTOR? MINE HAS A TAG (HUD) BUT HAS A SET OF ENGINEERED PLANS, IS ATTACHED TO A 32" CONCRETE FOUNDATION, WAS HOOKED UP BY A LICENCED ELECTRICIAN AND PLUMBER, PASSED SEVERAL LOCAL BUILDING INSPECTIONS, AND MEETS ALL LOCAL CODES FOR CONSTRUCTION REQUIREMENTS(SUCH AS SNOW LOAD, INSLATION FACTOR) I LIVE AT 8000 fT SO I BELIEVE THE SNOW LOAD IS 70#. THE COUNTY ACCESOR LISTS IT AS "REAL PROPERTY" NOT MOBILE OR HUD, SO DO I STILL HAVE ISSUES GETTING FIANANCED?? ANY HELP WOULD BE APPRICIATED -- I WANT TO SELL BUT HAVING TOUBLES WITH FIANANCES BECAUSE OF THE CRAP ABOUT METAL FLOOR JOISTS.
My answer (will all be bold)
Sorry, your home is a HUD code. The answer to your question is the appraiser and the appraiser is the one that will take pictures of the HUD tags. Your home is able to be financed with either FHA or conventional loans. The rate maybe be higher, but it is very doable. Where is the home located?
(why the appraiser, in most transactions the appraiser is the only one with knowledge to look for the tags or data plate. The appriser is an independent 3rd party to the transaction. If the appraiser says the home is built to the UBC/IRC code then the lender will accept that and Freddie and Fannie say it is a "STICK BUILT HOME". If the tags are removed and the appraiser locates the data plate or the serial number that is stamped up near where the hitches for transport were located then it is up to us to verify the serial number and the code that it is built to.)
(location deleted) HOW CAN IT BE CONSIDERED ONE WAY BY THE COUNTY I LIVE IN, BUT TOTALLY THE OPPOSITE BY AN APPRAISER. SEEMS LIKE A LOT OF CRAP TO ME. THE HOME IS BUILT TO OUR CODES, WHICH ARE MORE STRICT THAN MOST ANY OTHER BUILDING CODES - BUT YET I GET SCREWED TRYING TO SELL IT .. I HAVE A BUYER BUT THEY ARE PLAYING HELL GETTING FIANACED BECAUSE OF THE TAG.
Ok Here is the deal, depending on your buyer's credit. Conventional 5% down and I am assuming that they will be living in the home as their primary residence, I am looking at 7%. FHA is 3% down and the loan limit in ###### County is 223K. I also assumed that they can document their income. The HUD code supersedes local codes. Local codes only apply to the foundation, electric and plumbing hook ups and snow load. I know it is frustrating and I sold manufactured homes for 12 years, but the HUD tag is the federal government and is inspected at the plant by the feds. But I can do the loan, it just has to be Full Doc and have cash down. Let me know if I can help.
( Let me expand on this some. I have place and worked with homes in some of the most difficult counties in Colorado. One inspector from Ouray County told me this years ago and it still applies. If the home is built to the HUD code, the locals have zero say over the home; but they do have say over snow loads and everything else about the home site (ie the foundation, plumbing, electric). But what about the assessor and other county officials? Unfortunately, they use the word MODULAR like we use the word XEROX. If the home is UBC code then it is stick built and I have more programs to work with, BUT WE CAN STILL FINANCE HUD CODE HOMES as long as they are on a permanent foundation. The title also needs to be purged, but that is easy so please don't stress over that, we can do it at closing with the title company if need be.)
I would like to thank PJ for allowing me to share our emails today and also Harold from Georgia for his call today about a "modular" that he is looking at buying. Both have the same concerns and questions and I hope I have help to answer them.
ANSWER. This is a HUD home.
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