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Are they similar - Mobile, Manufactured or Modular home?

Posted on: 23rd May, 2006 03:44 pm
Just curious, what is the difference between a mobile, manufactured or a modular home when it comes to getting a mortgage?

JW
Hi JW,

As per my knowledge many lenders will grant a conventional mortgage for manufactured homes, but will likely require that the home is placed on a permanent foundation. Manufactured homes are eligible for FHA and VA home loans.

On the other hand a modular home is not the same as a manufactured home for VA purposes. Although the parts or sections of a modular home are built in the factory and then moved to the building site, the home must still be put up and completed at the building site. However, a loan can be obtained to purchase a modular home under VA's regular home loan program.
Posted on: 23rd May, 2006 05:58 pm
Hi JW,

"what is the difference between a mobile, manufactured or a modular home when it comes to getting a mortgage?"
Modular homes:
  • Are built in sections at a factory and are transported to the building site on truck. Over there, local contractor joined the sections.
  • Are built to meets the requirement stated at state and local building code.
  • The local building inspector inspect the home to check the whether the modular home structure meets the requirement or not.
  • The modular home should have the long durability as the home value gets gradually increase over the time past.
Manufacture home
  • It is referred as mobile homes or trailers.
  • Manufactured homes are built on a non-removal steel chassis in the factory.
  • Manufactured home should meet the rule of Federal building code called HUD code.
  • Different sections built in the factory are transported to the building site on the own wheels. And the multi-part manufactured sections are joined at their building site.
  • Building inspector inspects the manufactured home to confirm that everything is working properly or not. But they didn't require approving the structure.
  • Manufactured homes re generally less expensive than the modular homes.
  • The value of manufactured home gradually decreases over time.
To know more about the mobile home, go through the article 'Mobile Home Loan'.

ThanksHi JW,

"what is the difference between a mobile, manufactured or a modular home when it comes to getting a mortgage?"
Modular homes:
  • Are built in sections at a factory and are transported to the building site on truck. Over there, local contractor joined the sections.
  • Are built to meets the requirement stated at state and local building code.
  • The local building inspector inspect the home to check the whether the modular home structure meets the requirement or not.
  • The modular home should have the long durability as the home value gets gradually increase over the time past.
Manufacture home
  • It is referred as mobile homes or trailers.
  • Manufactured homes are built on a non-removal steel chassis in the factory.
  • Manufactured home should meet the rule of Federal building code called HUD code.
  • Different sections built in the factory are transported to the building site on the own wheels. And the multi-part manufactured sections are joined at their building site.
  • Building inspector inspects the manufactured home to confirm that everything is working properly or not. But they didn't require approving the structure.
  • Manufactured homes re generally less expensive than the modular homes.
  • The value of manufactured home gradually decreases over time.
To know more about the mobile home, go through the article 'Mobile Home Loan'.

Thanks
Posted on: 23rd May, 2006 09:22 pm
JW,

This is a great question. Our mortgage offices get at least one phone call a month regarding this issue ... usually from potential mobile home buyers having difficulty in finding a lender that will finance such a property.

Mobile/Manufactured homes have steel reinforced joists and I-beams that allow it to be transported ON WHEELS from the factory to the eventual home site. It is actually towed to its final resting place where the wheels and tow bar are removed.

Mobile/Manufactured homes placed semi-permanently within a ‘trailer park’ or ‘manufactured home community’ are NOT eligible for mortgage financing as they are considered “real property” (as opposed to “real estate”) – just like an automobile.

However, if the mobile/manufactured home is placed permanently on a foundation that is on a property parcel owned solely by the home owner - mortgage financing may be available. This type of mortgage can be conventional or government financing – but either way the home must meet local guidelines for qualifying as actual real estate with a property parcel identification number.

Modular homes by contrast are simply pre-built ‘stick’ homes that do not have steel reinforced joists or I-beams and are NEVER on wheels (they are transported on special flat bed trailers). Mortgage financing for modular homes is exactly the same as conventionally built ‘stick’ construction homes ... assuming the home is placed on it's own land parcel (which is usually the case)

I hope this clarifies the differences when it comes to mortgage financing for these different property types.
Posted on: 24th May, 2006 09:00 am
IN 2007 MY FATHER PASSED AWAY. MY SON, DAUGHTER, AND MYSELF MOVE IN WITH MY MOTHER. THE HOUSE IS OLD AND HAS NOT BEEN KEPT UP. LAST 9/3/08 MY SON WAS IN A CAR ACCIDENT AND NOW IS STILL IN BALTIMORE, MD IN THE HOSPITAL LEARNING HOW TO LIVE AGAIN. HE WILL BE COMING H0ME IN A WHEELCHAIR. I WANT TO BUY A MODULAR HOME AND PUT IN THE PLACE OF THE OLD HOME.
Posted on: 15th Jun, 2009 07:03 pm
hello i bought five acres 5 yrs ago with a single wide mobile home and was required by the va as i am a disabled veteran and now i want to refinance for a lower interest rate and most banks tell you they dont loan on single wides even though back when i financed it they told me i had to put it on a permanent preengineered foundation and now why cant i refinance at a lower interest rate real property is real property isent it it states that it is real property in my mortgage and they made me make it real property how can banks discriminate plus my loan is backed by the va home loan gaureentee . the law states real property is real property right. i have good credit and loan has been paid exactly on time very time
Posted on: 31st Jan, 2010 04:23 pm
Need a lender in Southern California that will make a construction loan on a high end modular. Client owns the land. Needs 600,000 .
Posted on: 24th Nov, 2010 09:18 am
???????
Posted on: 24th Nov, 2010 09:45 am
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