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What is The Delaware Manufactured Home Loan?

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Mortgage and Lending with Primary Residential Mortgage Inc. NMLS 38783
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WHAT IS A DELAWARE MANUFACTURED HOME LOAN?

Buying a home is a large investment – it could take years to save up enough to afford a traditional home in Delaware. Thankfully, there are less traditional options available for eager potential home buyers. Manufactured homes are typically a more affordable option than homes that were built on site and can be more financially accessible. They come in a variety of styles and types, giving homeowners a more traditional home feel for less. The John Thomas Team can help you navigate the Delaware Manufactured Home Loan – give us a call at 302.703.0727 or Apply Online to get started.

Around 18 million Americans live in a manufactured dwelling. Manufactured homes are built to HUD Code on chassis – think of a car and steel base with wheels and axles. Once they reach a permanent location, the wheels, hitch, and axles come off. At that point, the site is prepped and utilities are connected. Once the home is removed from the chassis it's put on a permanent foundation.

 

WHAT IS THE DIFFERENCE BETWEEN MANUFACTURED, MOBILE, AND MODULAR HOMES?

When discussing Delaware Manufactured Home Loans, it’s important to understand the three types. What many people think of as a “mobile home” is most likely a “manufactured home”. There are major differences in the home categories:

  • Manufactured homes are factory-built homes that are built on a chassis. These homes are subject to the National Manufactured Housing Construction and Safety Standards Act of 1974 – they are required to meet safety standards set by the U.S. Department of Housing and Urban Development (HUD)that were put in place after June 15, 1976.
  • Mobile homes are factory-built homes made before June 15, 1976. Since they were built before safety regulations were put in place by HUD, they aren’t usually approved for loans.
  • Modular homes are similar to Manufactured homes but built to a different code (not HUD). They are never put on a chassis, are factory-built homes that are assembled on-site, and are typically permanently installed on a concrete foundation. They are basically a dwelling that is built in a factory, then joined together at the site on a permanent foundation in accordance with all state and local laws.
    • Built to IRC code
    • Tend to hold value and appreciate more than manufactured or mobile homes, so it’s easier to get loans for modular homes
    • Built in sections and put together at the property site

Most buyers of Manufactured homes go out and buy land and place the home on that land. This makes them a quite affordable option. Fannie Mae Home Ready and Freddie Mac’s Home Possible have reduced MI and more flexible guidelines.

Manufactured Homes are not always trailers - they are built in very nice areas and with very nice styling.

 

WHAT IS CONSIDERED A QUALIFIED MANUFACTURED HOME?

There are certain qualifications involved with the Delaware Manufactured Home Loan:

  • One Unit Only
  • Must be constructed after 6/15/76 (when HUD guidelines came in place for constructions of manufactured homes)
  • Must be classified as Real Estate prior to the closing
  • Must have been attached to a permanent foundation in accordance with manufacturer’s requirements
  • Must be in compliance with state, local, and federal codes
  • Must be permanently connected to utilities, a septic tank or sewer system
  • Trucked in Water or Cistern Water is not acceptable

 

What Mortgage Loan Options are Available to Purchase a Delaware Manufacture Home or a Delaware Mobile Home?

Delaware Manufactured Home Loans can be used with several government-backed loan programs, such as FHA and VA.

 

WHAT ISN’T ALLOWED WITH DELAWARE MANUFACTURED HOME LOANS?

Certain criteria will render a Manufactured Home ineligible for financing:

  • Single wide homes are ineligible
  • No investment properties
  • No Lease Hold
  • Renovation Lending is allowed with FHA manufactured homes only
  • Second homes are available with Fannie Mae or Freddie Mac only
  • Is not eligible if it’s a property that was moved from its original site (was permanently affixed to a foundation and then moved to a new location – it’s fine if it is coming from a dealer)
  • No Co-Ops
  • No cistern or trucked in water

There is a lot more information that goes into Delaware Manufactured Home Loans - please visit my full page on the subject at the Delaware Mortgage Loans website to learn more.

Show All Comments
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Although the modular home is the better of the 2 pre-fabs, stick built beats them both

Mar 17, 2018 07:53 PM
David A. Weaver
Peoples Bank & Trust Co. - Scottsdale, AZ
24 years helping folks finance their dreams.

Modular homes are built to the same building code as any site built home, with the added bonus that during its construction the home is built inside a climate controlled factory and the building inspectors are on site every working day.  Modular homes are appraised straight up against any other site built residence of the same building code whereas Manufactured have a special designation for appraisals and their own form and constraints put on the appraiser i.e.: only manufactured comps to be used in most cases. 

In most states I have found that you cannot determine whether a home was built in the factory or on site as long as the appropriate UBC, ICBO, BOCA, SBCCI, or other State, County or City local building code used is the same.  Unlike a manufactured home which comes with a personal property vehicular title, like a car, truck or motor home, which has to be surrendered and an "Affadavit of Affixture" recorded to turn land and personal property into real property legally.  The Affadavit of Affixture is always a part of any title search so the buyer can tell that the home was built to a different code.  Since the true Modular is always real property and built to the same code as those constructed totally on site,  no such legal manouver is required as the buyer is always getting a site code built home.

The above info is also valid in every state of the Union not just in Delaware.  The manufactured HUD code is a federal code that governs construction in all states and in the USA the main codes in the West is the UBC along with the ICBO, BOCA and SBCCI.  And the local state, county, city planners get into the mix as well.  What I've found is that the Modular home builders are very aware of the local codes that come into play and they build to meet the requirements of the location where the home will be sited during final construction.

Manufactured home builders build to the federal HUD code and the local state, county, city planners dictate how the home must be sited and recorded as real property after is is in place.  If not done correctly the home is not eligible for financing by any than personal property lenders or individuals.

Mar 19, 2018 10:13 AM
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Delaware Mortgage loans for the purchase or refinance of homes in Delaware. Advice on Delaware mortgage rates and loan programs. Delaware FHA Loans, Delaware USDA loans, Delaware VA loans, and Delaware Reverse Mortgages. John R. Thomas is the author of the book, Your Guide to Buying Your First Home in Delaware.

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