Manufactured Home Loans
MANUFACTURED HOME DEFINITION Fannie Mae defines a “manufactured home” as any dwelling unit built on a permanent chassis that is attached to a permanent foundation system and evidenced by a HUD Data Plate and HUD Certification label.
MANUFACTURED VS MODULAR
- Very old models are sometimes referred to as mobile homes or trailers.
- Manufactured houses are pre-constructed completely in the factory on a permanent, fixed steel chassis.
- Manufactured homes have wheels which are typically removed once the unit is towed to the home site.
- Manufactured homes typically have skirting/siding around the bottom of them to hide where the wheels were removed and to give it the appearance of a typical home.
- Manufactured homes must abide by a Federal HUD building code.
- Once built the manufactured home (typically 1-3 sections) is moved to its permanent location using its own wheels.
- Often referred to as factory-built (or pre-fabricated) homes.
- Modular homes come pre-built in sections from the factory.
- Modular homes are then transported to the building site on truck beds, and constructed together using a large crane with construction workers at the building site.
- They are finished on location, and must conform to all local, state or regional building codes.
- Modular homes are typically more expensive per square foot than manufactured homes.
MANUFACTURED HOMES - PROS vs CONS
Speed of Construction
High Quality and Versatility
Built in full compliance with HUD standards for manufactured housing
Limited financing options
Financing Restrictions and Limitations
MANUFACTURED HOME SPECIFICATIONS AND REQUIREMENTS
- Must be built on or after 6/15/1976.
- Minimum 600 sq. ft.
- Must be at least 12 ft. wide.
- Wheels, axle, and hitch must be removed.
- Manufactured home must be permanently affixed to a foundation as evidenced by a form 433A which is a recorded document indicating that the manufactured home is installed on a permanent foundation.
- Must have HUD Certification Label and HUD Data Plate.
- Manufactured home must be legally classified by the state as real property (not personal property).
- Manufactured home must be on property where the borrower is an owner on title.
- Mortgage must be secured by both the home and the land on which it is situated.
- Must be owner-occupied primary residence or secondary residence.
- The unit must not have been previously installed or occupied at any other site or location, except from the manufacturer or the dealer’s lot as a new unit.
- The manufactured home must be permanently connected to a septic tank or sewage system, and to other utilities in accordance with local and state requirements.