Check List for Purchasing an Older Mobil Home in California

Awhile back I submitted an offer for clients on a Mobile Home that our MLS states to be a 1979 on a permanent foundation.

The date of manufacture and the foundation are critical to what kind of financing you can obtain.  I'm not an expert on Mobile Home sales but I do know that to get the best financing the home must be on a permanent foundation: meaning in a California, a seismic foundation system.  Also, you want  the mobile home to be newer than 1978.

This particular home seemed to meet the requirements.  In fact, it was REALLY NICE -- almost like new.  Besides installing a permanent foundation certifed by the County of Fresno, the unit also had the following: New roof, siding, doors, window, sheet rock, paint, etc ... in fact, just about everything was new.  There was also a second mobile home on the property (single wide)

The first thing I learned - from the lender - is that in order for a mobile home to qualify for FHA financing there can only be one unit on the property.  So, knowing that there was a second unit on the property the lender instructed the owners to remove the stove and water heater from the smaller single wide so it could be deemed and out building.  In theory this would generally work but this little single wide looked brand spankin' new just like the other one so the appraisers pictures left no doubt in the mind of the lender as to it being a second home.

I also learned that if the mobile home has been moved from its original location it no longer will qualify for FHA financing (even if it qualified in its previous location)

But here's where I got my education.  Every mobile home that qualifies for FHA financing MUST HAVE HUD TAGS.  HUD tags are the equivalent of license plates or more specifically the VIN numbers of a vehicle.

The appraiser could not find the HUD tags so I gave here the information from the Engineering Dept of the County of Fresno that had the serial number ID info on it.  This was all the seller was able to produce.

This wasnt sufficient so the appraiser gave me information from HUD to pass on to the listing agent that would allow them to get the original tags based upon that information.

According to what I was told by the listing agent HUD had no record of those units so they could not be reproduced.

As a last ditch effort the sellers had the siding removed in an attempt to locate the original stamps, to no avail.

So, after weeks of work trying to get FHA financing we had to give up.

The listing agent then emailed me and told me he knew of a source for financing, albeit not FHA.

So, I contacted the source and the gal I spoke with was very knowledgeable.  The only information I could give here was the serial numbers that I had on the County Engineering Document that stated the age of the unit, the year the foundation was installed, etc.

When she ran the numbers she came up with a match.  The match was a unit that 1976 and NOT 1979.  It also had a stated address different from the current address -- BUT VERY CLOSE BY.  So close that it looked like to me that when the property was subdivided it was formerly on another parcel.  The most troubling thing she said though, was that her information showed a different owner that the current one.

The information she provided me led me to conclude the following:

• The mobile home was perhaps originally placed at that property prior to a subdivision of the property -- but not at that location.

• The mobile home is not a 1979 model as advertised in the MLS but rather a 1976.

• After the property was subdivided the mobile home was moved from one parcel to another.

Also, it occured to me after looking over the prelim that the there was no chain of title for the mobile home -- just the one document from the County with the engineering stamp.

In summary, if you are purchasing an older mobile home and want to get FHA financing there are 3 things you should look for:

HUD TAGS

HUD TAGS

hud tags

If a seller cannot produce HUD TAGS and a chain of title evidencing that the unit(s) was installed NEW on the property,

YOU SHOULD RUN, not walk away from the deal.

© Randy "Lazarus" McAtee

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