Manufactured Homes

Education on issues and obsticles for Purchasing or refinancing
Manufactured homes in idaho.

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Manufactured Homes

Manufactured homes are a popular way for an Idaho home buyer to attain homeownership at a lower cost.  And many lenders will loan on manufactured homes, both conventional financing and government financing, such as FHA, VA and Rural Development.

But as with most home loans, there are regulations that need to be aware of, to ensure a smooth loan transaction, and home shopping experience.  We will cover a few of these.

Important Construction and Date information:

One of the most important aspects is the age and style of a manufactured home.  A manufactured home, in order to get any type of loan has to:

  • Be built after June 15, 1976, the reason for this is the Federal Manufactured Construction and Safety Standards went into effect, that covered such items and construction, wiring, and transportation.  Prior to this date, no standards were available and/or were not being followed.  A complete list of standards can be found on HUD regulations at 24 C.F.R. Part 3280.
     
  • A manufactured home has to be a double wide, lenders are not going to loan on smaller homes.  Lenders also want to make sure that the value of the property is not in the land, but in the home, itself.  This is the reason why some lenders limit land value to 35% of total purchase price.
     
  • A manufactured home in Idaho, has to be on a permanent foundation, and recorded as real property with the county.  The tongue or hitch has to be removed, and the axels need to be removed as well.  This is to prevent someone from purchasing a manufactured home, putting it on land, closing the loan, and then hitching it up and moving it to another state, and not paying the mortgage. 
     
  • A manufactured home can only be moved ONE TIME, from the factory to its original foundation.  If a manufactured home is moved a 2nd time, it is ineligible for ANY type of financing other than owner carried.  But even in that case, it is highly recommended that a complete structural, electrical, and plumbing inspection be carried out.

In Idaho, the mobile home owner, files an “Intent to declare real property” with the county which is then recorded.  Once that is recorded, a mobile home becomes a manufactured home, and thus Real Property.

With regards to the foundation, the manufactured home has to be set on a HUD Certified Foundation, and a certificate must be issued.  Typically, the builder of the manufactured home provides this to the borrowers are time of closing on the new home, and should be kept as a permanent record. 

Lenders can require a copy of the certificate, if it is unable to be located, a new HUD Certificate will have to be issued, meaning that the foundation will have to be re-inspected by a Foundation Inspector.  Typical cost of this is $400.00-$500.00.

Important Data Documents

There are also 2 over important items which must be permanently fixed onto the manufactured home and not removed.  The first are the HUD Plates.  These are aluminum plates, located on the right side of each sections of the 

 

manufactured homes.  They are approximately 2” x 4”, red, and have ID numbers stamped into them.  They should NEVER be removed or painted over or hidden. 

During an appraisal of a manufactured home, the appraiser must take pictures of each of the HUD plates and verify that they match the Certification Label.  They will also look to make sure that the plates are sequential. If the plates are 

missing, new plates will have to be issued or a “Letter of Label Verification” has to be issued.  This can take weeks unless you pay for a rush.  To obtain this letter, the current owners have to call the Institute of Building Technology and Safety at 703-481-2010 or their web site link is here:  Building Technology and Safety.

The 2nd item is the Certification Label or Data Plate, this is typically located under the kitchen sink, on the right side of the cabinet, in the electrical panel, or in bed room closet.  Here is various information about the home, including HUD Plate ID numbers, serial numbers, wind zone, snow load, and manufacturing information.  The appraiser will also need to take a picture of this document as well.

Again, if the Data Plate is not accessible, missing, or painted over, or trashed, then the owner needs to again call the Institute of Building Technology and Safety to request a new one.

 

 

 

Safety and Security

If the home is on a well and septic system, these will have to be inspected also.  A third party, independent inspection of the Septic along with pumping will have to be completed, unless the current owner can produce documents that a septic pump and inspection has been completed within the last 365 days.

Well inspection will also have to be obtained, no matter how recent it was completed.  The water needs to be drawn by an independent 3rd party and sent to a HUD certified lab.

If the home is on city services, no inspection will be needed.

Manufactured homes in Idaho, are a popular way of getting into a home at very low costs.  They are built to current building standards and when properly installed and maintained, will last as long as a typical constructed home.  But when a person is purchasing and existing one, it is important to look for items, such as HUD Plates, to ensure a smooth transaction.  And we always recommend that you get a independent 3rd party home inspection.

Prior to purchasing a home, we also recommend that you complete a quick check list of items which government appraisers look for, a link to that list is here.  And if you are a home owner, and are going to sell, we also recommend that you too review this check list.  This way you can avoid any surprises from a home inspector or an appraiser.  Link to Check List Here

1st Choice Mortgage, located in Meridian, Idaho,  has many options for people purchasing or refinancing Manufactured homes and are very experienced in overcoming hiccups along the way.  Give us a call today!

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