While there are still some lenders out there offering conventional (Fannie/Freddie) financing for manufactured homes, very few lenders are offering FHA/VA loans on them. For brokers and correspondent lenders this has created a big problem for them. Of the few lenders offering these products, their rates/fees are not very competitive and the restrictions added can make even the cleanest deal fall apart at the last minute. So the questions becomes, who is offering FHA/VA loans on manufactured homes these days? The answer...big banks, and they are keeping them for themselves.
PNC Mortgage, Wells Fargo and Bank of America still offer FHA/VA financing for manufactured homes but only in-house. No broker or correspondent offerings at all. So there is very little competition for these products and for real estate agents, this is VERY important to know. If they have a manufactured home listed for sale, they better have a reliable "source" for financing, same goes if they have a buyer looking for homes priced for many first time home buyers.
As a mortgage banker for PNC Mortgage, I have worked hard to get the word out to as many agents as I can (especially those with manufactured homes for sale) that I am one of the few lenders offering FHA and VA products for manufactured homes. Not only that, but specialize in them as well!
So my advice to real estate agents is if you don't have a source for manufactured homes at one of the "big 3" banks (or even if you do) ... call me. Keep my information on hand because you never know when you might need my services... :)
Saturday, July 31, 2010
Tuesday, July 13, 2010
Pounding Nails
Most people are surprised to learn that when putting a porch or steps to their manufactured home, that they must keep them free standing. Well, I shouldn't say they "must" keep them free standing, but they should and here is why.
Once something like a nail is driven into the manufactured home to attach the stairs or porch to the home, it could have affected the structural integrity of the home. You see, the home is structurally engineered to handle so much weight against the frame. Adding something like a porch, changes how much weight and pressure gets put against the frame. Once this happens, we need to have someone verify that the additonal weight did not affect the structural integrity of the home.
Many people are surprised to learn who handles this in the State of Washington. It's Labor and Industries. Once a permit is issued, L&I will come out to inspect and (hopefully) approve the addition to the home. The same inspection would be required with things like an add-on addition, a wood stove, new windows, anything that changes the original frame of the home.
That's why most people make their stairs free standing. Less permits, inspections and less hassles. I have also learned that each state designates who does the inspections. It's always a mystery the first time we have to find out who does it in a new state.
Once something like a nail is driven into the manufactured home to attach the stairs or porch to the home, it could have affected the structural integrity of the home. You see, the home is structurally engineered to handle so much weight against the frame. Adding something like a porch, changes how much weight and pressure gets put against the frame. Once this happens, we need to have someone verify that the additonal weight did not affect the structural integrity of the home.
Many people are surprised to learn who handles this in the State of Washington. It's Labor and Industries. Once a permit is issued, L&I will come out to inspect and (hopefully) approve the addition to the home. The same inspection would be required with things like an add-on addition, a wood stove, new windows, anything that changes the original frame of the home.
That's why most people make their stairs free standing. Less permits, inspections and less hassles. I have also learned that each state designates who does the inspections. It's always a mystery the first time we have to find out who does it in a new state.
Tuesday, July 6, 2010
Manufactured home vs. Modular home
Many people that call me for a mortgage on a manufactured home, mistakenly refer to their home as a "modular home". I've come to assume this is because they feel that by calling their home a "modular", they feel it gives it more of a quality that the name "manufactured home" doesn't.
The problem is that these are two, very distinct types of housing that can and does effect which type of mortgage it qualifies for. You see, a modular home qualifies for the same financing as a stick built home. Whereas a manufactured home may have different rates, costs and may not even qualify for a lot of loan programs. So, what is the difference between the two.
The two homes are essentially the same. In fact, from a distance or even up close, you would not tell the difference (except by the tag on the outside of the home). The difference is where the home was assembled. A manufactured home is assembled in a controlled environment and shipped in two pieces (for a double wide) and connected on it's foundation on the property. A modular home has all of the pieces shipped to the home site where it is assembled in the same fashion as a stick built home.
So, there you have it. While to some people modular may mean "quality". It is essentially the exact same house as a manufactured home, just assembled at the building site and not at the factory. I hope that clears the difference.
The problem is that these are two, very distinct types of housing that can and does effect which type of mortgage it qualifies for. You see, a modular home qualifies for the same financing as a stick built home. Whereas a manufactured home may have different rates, costs and may not even qualify for a lot of loan programs. So, what is the difference between the two.
The two homes are essentially the same. In fact, from a distance or even up close, you would not tell the difference (except by the tag on the outside of the home). The difference is where the home was assembled. A manufactured home is assembled in a controlled environment and shipped in two pieces (for a double wide) and connected on it's foundation on the property. A modular home has all of the pieces shipped to the home site where it is assembled in the same fashion as a stick built home.
So, there you have it. While to some people modular may mean "quality". It is essentially the exact same house as a manufactured home, just assembled at the building site and not at the factory. I hope that clears the difference.
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