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Puzzled About Manufactured Home Lending and Title Requirements?

By
Real Estate Broker/Owner with CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments 521400, 1501015, 01795582

Puzzled About Manufactured Home Lending and Title Requirements?

Manufactured Home Lending and Title Requirements

California: The 433A Curative Title Solution

The Personal vs. Real Property Puzzle: Manufactured homes that are situated on deeded real property may still be classified as personal property (chattel) with the Department of Housing and Community Development (HCD) even though the borrower is paying property tax!

 

Since most lenders, title companies and attorneys require proof that the home is attached to and classified as real estate, a last minute discovery that a home has not been properly converted can impede a time sensitive transaction or foreclosure.

Unlike other states where "detitling" or classifying a manufactured home as real property is a paper process that can be expedited by a homeowner or escrow with relative ease, California has a collection of jigsaw pieces that need to be matched up perfectly.

Curative title requires cooperation of a building authority, contractor, and HCD, all working collectively, We are uniquely qualified for California's title perfection and conversion process. MH-Processing can put the pieces of the puzzle together, working with contractors, building departments and the Department of Housing and Community Development to tackle California's unique 433A issues.

ABESCO TUFF 1 FOUNDATION PIER

Nationwide: The Foundation Certification Solution

Lenders generally want to throw up their hands when a manufactured home loan comes across their desk. Even if a borrower has great income, an ideal FICO score, and an "on target" appraisal value, that might not be enough to satisfy underwriting.

In some ways, manufactured homes are treated like the ugly stepchild of the housing industry. The disparaging treatment is less about the type of borrower or even the structure itself, than the fact that manufactured homes are tricky business.

It's the laundry list of conditions that is the real problem! For instance, if a home was manufactured before a certain date or was previously moved, the loan can be "Dead On Arrival". FHA-insured loans and sometime VA also require a site specific certification of the foundation to meet HUD guidelines by a Professional Engineer. It's an endless list!

 

So where do you go for specialized information or troubleshooting ?

MH Processing of course! We can help you tackle most manufactured home issues for the sales and lending process, whether it is a HUD compliant Engineer's Certification or a foundation repair. We have a nationwide network of engineers and contractors knowledgeable about the HUD guidelines.

We talk lender language so let us tackle the difficult questions

Call Janis Arendsen 800 909-1110   CELL: 760 415-1982

or email: janis@mh-processing.com

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Why To Choose Us?

John DL Arendsen, Broker, General & Manufactured Home Contractor and Dealer 

TAG Real Estate Sales & Investments

TAG (The Arendsen Group) Real Estate Sales & Investments is a full service, one-stop, turnkey, family owned and operated real estate brokerage, General Contractor, Manufactured Home Contractor, Developer, Investor, Property Manager, Interior Design, Engineering, architectural, Landscape design, Expert Witness, Consulting, Curative Title and Troubleshooting company with over 100 years of combined experience in the San Diego real estate sales, construction, design & development arena.

 

 

 

 

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Barbara Tattersall
Keller Williams Realty Metropolitan (Keene,NH) - Keene, NH
GRI

In New Hampshire, manufactured housing is classified as real property and transfers by deed; unless it is the first sale from the manufacturered home dealer.  The property has to be at least 640 sq. ft. attached to utilities and meant to be used as a dweling. Most banks won't lend unless the homes are on their own land but there are lenders that specialize in manufactured housing loans and some credit unions that will lend 100% depending on the age.

Jan 15, 2014 08:54 PM
John DL Arendsen
CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA
Crest Backyard Homes "ADU" dealer & RE Developer

Hi Barbara, the date you're referring to by most standards is June 15, 1976. This is when the HUD Mandate kicked in and home technically went from "Trailers" & "Mobile Homes" to what is now referred to as "HUD Manufcatured Homes". 

However, it took until the 80's before we actually started seeing the overall construction standards beging to improve and become more like site built housing i.e. 2x4 & 2x6 studs on exterior walls instead of 2x3, drywall instead of the very flimsey 3/16 inch paneling and Masonite siding instead of aluminum.

Jan 15, 2014 11:30 PM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

The standards have been raiseed since the 1970;s and banks can be very fusy on manufactured homes. If they are not on land owned that causes a problem unto itself and is considered an chattal

Jan 16, 2014 12:45 PM
John DL Arendsen
CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA
Crest Backyard Homes "ADU" dealer & RE Developer

Jimmy, Thanks my friend and I appreciate your contribution but that's exactly what this post is all about.

Jan 16, 2014 10:51 PM
Nevin Williams
Fairway Independent Mortgage Corporation - Cary, NC
Senior Mortgage Advisor

Hey this is great to know!  I will consult you on my next manufactured housing financing request

Jan 30, 2014 03:03 AM