Manufactured homes have various connotations depending on the local market. In some areas, they are looked down upon and ridiculed while other locations may have more manufactured homes than stick-built. The proper terminology is "manufactured" - not mobile or trailer. When listing a manufactured home, it is important to describe it as such. I often see manufactured homes listed as ranches which I know is an attempt to obscure the manufactured aspect of the home in the market. Unfortunately, manufactured homes have far more restricted financing options than stick-built and even modular homes. Due to thee restrictive financing of the past several years, values of manufactured homes have fallen sharply as owners can neither refinance nor sell the homes. Be sure to list the property based upon sales and listings of competing manufactured homes since stick-built listings and sales will inflate the listing price beyond marketability. Listing the home improperly only puts off problems which will surface with an accepted, non-cash offer. It also makes appraising future manufactured homes more difficult for local appraisers since it will not appear as a manufactured home in comparable searches.
Homes built prior to 1978 do not meet the HUD guidelines and do not typically qualify for most financing options - limited as they are. There should be a metal HUD tag near the end on the bottom of each section of the home. There should also be a HUD Certificate posted in the interior of the home listing the manufacturer, date of manufacture, model number, HUD numbers, and climate ratings (which are displayed on a small map of the U.S.). This certificate can be posted nearly anywhere within the home but typically can be found in a closet on the wall, on the interior of a cabinet door, inside the electrical panel box, or on the rear wall of a cabinet in the kitchen or bathroom. Finally, the towing assembly, axles, and wheels must be removed for most financing.
FHA presently appears to be the choice for financing manufactured homes in the present economic market. A foundation and tie-down certification will be required by a licensed engineer for FHA financing. When listing a manufactured home, it may be extremely helpful to locate prospective financing options for the future buyers to hasten the process after the offer. (Several major national appraisal management companies have standing instructions to stop the appraisal process if the home is manufactured since many lenders no longer finance manufactured homes.) Locating a ready lender will avoid having to restart the financing application process due to original lender not accepting manufactured homes.
Dealing with these items upfront will hasten a sale of a manufactured home and reinforce your professional image in the marketplace.
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