Refiance a stick built home and a modular on the same property

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I have 4 acres with a 1700sf stick built home on it and a 1000sf modular home as a granny quarters.I have a first mortgage and an equity line of credit. My credit is great score is great. Our property appraised fine enough to refinance but the loan officer I have tells me no one will loan on a property with a modular home on it. Is there a company that will do this?


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There are lenders out there, just fewer and far between, many only lend in certain areas/states as well. You may also qualify under certain Rural Homes guide lines. Much of it will depend on the age of your properties and whether or not they are in compliance with your county/state codes for being secured to a foundation or not. HUD has guide lines for these types of properties as well. This is just a brief summary from Chase who is one of the strictest lenders as far as guide lines go:

Eligible:

In order to be eligible for sale to Chase, factory built housing must assume the characteristics of site-built housing, and meet local building codes. This includes: • modular, • prefabricated panelized, • kit housing, including some log homes, • sectional housing

Ineligible:

Manufactured housing (mobile home) is ineligible for sale to Chase. Characteristics of manufactured housing (mobile homes) include: • is constructed away from the property site • may include its own chassis • may include towing hitch, wheels, and axles (which may have been removed or be non-viewable) • may be considered single-wide, double-wide, or triple-wide • will have a HUD label and a HUD Data Plate • may be permanently affixed to a permanent foundation in accordance with the manufacturer’s requirements for anchoring, support, stability, and maintenance. Any evidence that the collateral is manufactured housing in whole or in part (such a as a mobile home with stick-built additions) renders the loan ineligible for purchase by Chase

Here is the link to HUD: http://portal.hud.gov/hudportal/HUD and I found his lender online: http://www.palmharbor.com/our-services/finance-with-cpm/ and from Freddie Mac: http://www.freddiemac.com/sell/factsheets/pdf/guaranteedruralhousing_223.pdf

Thanks, Dan

Answered about 1 year ago

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I would recommend getting the refinance on the stick built home and not including the value of the modular home at all. The appraisal may include it as a “storage building” or the like but not count it as a residence. Or it could simply be excluded from the appraisal and the mortgage.

If you need the additional value then you could run into problems. One, you need to make sure that you are in compliance with the zoning codes. Second, it would have to be on a permanent foundation and built to BOCA standards. Third, the appraisal will appraise the property as a duplex or would need to find comparables that have two homes on one piece of land. Depending on where you live, this could be very difficult or even lower the value of your main residence.

Answered about 1 year ago
about 1 year ago Ted Rood said:
 

Kind of a tough strategy when lender can’t talk to appraiser or communicate in any manner except through AMC. Have seen the “ignore the mobile home” technique work in the past, but now, with appraisers more compliant and “CYAish” than ever before, doubt appraiser will count that extra home as a chicken coop.


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