Saturday, November 2, 2013
Who Else Wants The Insider Secrets To Mobile Home Financing-"Pre And Post-Hud"
Financing a mobile or manufactured home many think is next to impossible. In many cases that may be true. However, our vast years of experience has shown that many of the obstacles can be addressed and in many cases rectified prior to getting the dreaded "turn down notification letter." Before the dreaded notice is a reality consult with an experienced mortgage broker with solid references.On June 15, 1976, the U. S. Government enacted significant legislation regarding the construction and safety standards for manufactured homes. This federal act has become the major dividing line concerning the registration, regulation and financing of manufactured homes. Without getting too technical, here are some of the major points of this act that are significant to consumers thinking about buying a manufactured/mobile home:1. Homes manufactured after June 15, 1976, (post-HUD), have a "data plate" permanently affixed to the outside of the home. Among the number of things required to be on this data plate are:a. The name and address of the manufacturing plant.b. The serial number and model designation, and the date the unit was built.c. A statement that the home was built to comply with Federal Manufactured Home Construction and Safety Standards in force at the time it was built.d. A list of the major factory-installed equipment and/or appliances.The above are some of the major provisions. Practically, what they mean to the consumer are:a. California, through the Department of Corporations, maintains a record of post-HUD units, similar to what title companies do for real property. You can find out a lot of information. Pre-HUD homes may have little or no information regarding the unit's identification numbers, construction, manufacturer and what the home came equipped with. Result-you know more about what you are buying with a post-HUD.b. Perhaps as importantly, because of this HUD system, a few conventional lenders will finance "qualified" post-HUD units as real estate. Pre-HUD units are financed as chattels, or personal property. There are fewer lenders, qualifying is usually more difficult, and rates and terms are not as attractive as post-HUD units. As a final comment, pre-HUD "single-wides", as opposed to double-wides, are almost impossible to finance.Bottom Line: Because of the problems associated with pre-HUD homes, some of which are enumerated above, these homes built prior to June 15, 1976, have become "bargains." They are often very attractively priced for one simple reason. They can't be, or are very difficult and/or expensive to finance. If these homes can be financed, often potential purchasers simply can't qualify under the stricter lender guidelines. Thus, the market for these types of homes has become a "cash on the barrel" market. People who bought pre-HUD homes for cash, or perhaps found a lender some years ago, when financing was more available, now find themselves unable to sell their home, or they must reduce the price, or even carry back a loan on the property in order to move it. CAVEAT EMPTOR!