Manufactured Home Loans are Back! Summer GUIDE #1 by Barry O'Meara •
barryo@stearns.com
ties holding values down. The move-up buyers are holding on to what they have, reluctant to make that move for fear of be- ing caught without a replace- ment property. The scarcity of available homes has turned the market into a game of musical chairs.
SANTA ROSA, CA. ~ Spring has barely sprung, April showers brought hardly a fl ower and the drought rages on. With the summer months upon us and we head for the peak of the home buying sea- son, home values continue to rise. The economy is on the mend and all this pent up de- mand is exceeding the limited supply. We no longer have the sea of distressed proper-
The underwriting rules that guide our market play a signif- icant role in shaping the homes we can buy. A dome home may seem pretty cool and all but you would have a diffi - cult time fi nding a lender willing to lend on it.
Lend-
ers like things to be comparable. This is why a track
home
in a subdivision is much easier to get fi nancing than the unique country property with acre- age. Purchasing manufactured homes became almost impos- sible after the fi nancial crisis of 2008 when underwriting
sharply changed its opinion on manufactured homes.
Fannie
Mae, Freddie Mac and all oth- er Government-sponsored en- terprises (GSE) steered away from manufactured homes like they were toxic. Now the good news; Conven- tional (Fannie Mae) and FHA underwriting guidelines have come back to their senses and are now offering fi nancing on Manufactured homes.
Getting fi - nancing on a manu-
factured home was nearly im- possible, and was only offered through a few portfolio lend- ers.
A portfolio lender will
keep their loans in-house and do not sell the loan to outside investors.
Opening up Manufactured Home loans with Fannie Mae and FHA, brings in new op- portunity for fi nancing those properties and is a sure indi- cator we are well on the road to recovery from the fi nancial meltdown of 2008. When fi nancing a manufac- tured home, it needs to be con- sidered “real property”, mean- ing on permanent foundation. Wheels, axles and trailer hitch- es must be removed.
They
don’t want any possibility of it being driven away!
will rule out fi nancing any manufactured home in Mobile Home Park.
mum requirements on size and age of the home.
The home needs to be at least a double wide and construct- ed after June 1976.
As for
loan-to-value and oc- cupancy, Fannie Mae requires the home to be
owner occupied and needs a minimum of 25% down payment.
For FHA loans, the buyer will be able to purchase an owner occupied home with just 3.5% down payment.
These new
guidelines are also available for refi nancing of existing loans but there will be limi- tations if you are planning to take any cash out. I realize there is a very lim-
ited market for the Manufac- tured home buyers but this is a segment that has been shunned by most lenders for the last eight years. For so long Fan- nie Mae would not even lend on a property that had a manu- factured home on it, even if it was just a granny unit. These new changes in lend- ing indicate a stable and sus- tainable market continuing.
I
feel there is thriving economy ahead for us all.
There are mini- This
June 2015 • 10 JOKES & Humor # 4
There was a Texas oil tycoon who was watching his largest oil well going up in fl ames. He called in the best fi re fi ghting equipment money could buy but there was no way they could get close enough to the intense fl ames to reach them with their water hose. Finally, out of desperation, he called the local volunteer fi re department. They chugged up in their 1946 truck and passed every one of the state of the art rigs and headed toward the center of the fi re. They stopped, jumped out, sprayed each other down with water, and then proceeded to put out the fi re. When they were fi nally fi nished, the
millionaire was so impressed with the crew’s dedication and bravery, he awarded the chief with a check for $10,000. Later, a reporter asked the chief what he was going to do with the money. The chief replied, “Well, the fi rst thing we’re going to do is fi x those lousy brakes!!”
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