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Must Haves For A Successful Manufactured Home Transaction
This is a quick synopsis of what you absolutely need for and manufactured, mobile, or modular home purchase or refinance.
1. Freddie Mac, Fannie Mae, FHA, VA: The manufactured home must have been built on or after June 15, 1976. For single-wide & double-wide manufactured homes.2. It must be Real property (A clear chain of tile) The home cannot reside in a mobile home or RV park. It must be fixed to a concrete slab (slab on grade) by hurricane straps or wire ties. If fixed to pylons, you must ensure the appraiser notes how the home is fixed.
3. Engineering Certification. This must have been completed by the original owner or any previous owner. If there is no engineering certification, this will need to be done before closing. Schedule this at the same time you schedule the 1004C appraisal.
4. Make sure the realtor, homeowner, or appraiser locates the data plate from the manufacturer. This is crucial. If this cannot be found the homeowner should have a copy of the original closing docs, which will likely have the data plate serial number. If not, check with the title company, they may be able to locate it through title records. If that does not work =, your last hope is with the county records.
4. All manufactured, mobile or modular homes can only be approved with a 20-year term. NO EXCEPTIONS! When entering data into your LOS, you set the term as custom (20 years).
Modular Homes: Modular homes must have an additional egress (Exit) other than the stairway if the home has a basement. The modular home must sit on a seal plate.
If you have all of these must-haves accounted for, you will have a much better chance to get a CTC.
Let’s Make Your Mortgage Work For You!
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3 Replies
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Great tips for a successful manufactured home transaction! Ensure compliance with Freddie Mac, Fannie Mae, FHA, VA guidelines. Verify real property status, obtain engineering certification, locate data plate, and follow specific requirements for modular homes.
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Do lenders finance single wide manufactured homes
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Key Components to Complete a Manufactured Home Purchase Successfully
All freshly built homes for sale come with a variety of merits. However, managing the entire process requires dedication and patience. Here are important points to put to work:
Get Familiar With Available Financing Options
Manufactured Home Loans: Learn about finance methods, which may include chattel loans for homes not on a permanent foundation and regular mortgages for those with a permanent foundation.
Pre-approval: Make arrangements with pre-approval companies that deal with manufactured home loans to determine your borrowing limit and give you an edge in your purchase position.
Select the Correct Area
Zoning Regulations: Verify that the property is suitable for placing manufactured homes and investigate local laws.
Community Features: Evaluate the available facilities, distance to educational institutions, shopping centers, and medical centers, as well as safety levels in the region.
Fully Examine the Home
Professional Inspection: Employ an expert appraiser to evaluate the condition of the structure, plumbing, electrical wiring, and HVAC. This will help resolve any concerns regarding these components well in advance.
Warranty and Maintenance Records: It is a good idea to ask the current homeowner to provide any existing guarantees alongside maintenance records concerning the house.
Check the Title as well as Ownership.
Clear Title: Look for a property whose title is in good standing and free of liens or encumbrances; this is critical to ensure no hitches in the transaction.
Manufacturer Information: Confirm that a reputable company manufactures the home and complies with HUD standards.
Negotiate Terms Wisely
Purchase Agreement: The sale contract must include the purchase price, contingencies, and closure dates. It shouldn’t be vague about what both parties are anticipating.
Seller Disclosures: Read any statements regarding the property’s current state that disclose similar features to other homes in the area. Such attributes could be crucial in the bargaining process.
Ease the Site Preparation and Android Filing
Land Preparation: Check that the land is well prepared for the home’s installation, especially with regard to foundations and utility arrangements.
Local Permits: Determine whether consent is required for any installation procedures and get it, if necessary.
Understand Insurance Requirements.
Home Insurance: Assess manufactured home insurance options, as they could differ from other insurance policies. Liability, personal property, and structure should all be covered.
Flood Insurance: In life, where a flood can occur easily, flood insurance should be kept aside for such occasions.
Plan for Moving and Setup Costs.
Transportation Costs: Include the expenditure required to move the home onsite and the installation and set-up-related costs.
Utility Connections: If water, electricity, and sewage connections are required, factor them in, as they will also increase the initial costs.
Read Community Rules (if applicable)
HOA: If the property is a part of an HOA community, learn about the regulations, payment, and restrictions that should be considered.
Engage Experienced Players
Real Estate Agent: It might be worth speaking to a real estate agent with experience in manufactured home transactions. It is important to allow such a person to represent the buyer during negotiations.
Legal Counsel: It is important to see a real estate lawyer to examine the contracts and ensure that all legal procedures are in order.
To complete a manufactured home transaction, one must do research, develop a plan, and delegate work to specialists. By addressing these must-haves, you can enjoy the more efficient scope of the process while locking in a good deal on your new house.