Financing in Houston>Question Details

Jane Lindsey, Real Estate Pro in 77024

2012 FHA LOAN for MODULAR HOME BUILT ON THE PROPERTY

Asked by Jane Lindsey, 77024 Mon Oct 15, 2012

I have asked several lenders and they all confuse modular with manufactured or mobile and RUN. The house is attached to the land via builder's pier. I am told this can be done and all I need is an FHA engineer's certificate, but cannot find a lender. Pls email me if you know someone. thx

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Donna Bush
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1 vote Thank Flag Link Mon Dec 10, 2012
I've attached a reference book on how to build a modular home. For those reading this, the difference between a modular home, stick built, pre-fab and mobile home is:

Modular home: modules are built indoors and then constructed at the site by placing one modular piece on top or beside the other. It's almost like a construction loan however, the majority of the construction is done inside the warehouse. Most people will have a large deposit paid to the General Contractor and then after completion, obtain a loan to pay him/her off. Wells Fargo is well known for these as are most credit unions.

Stick built: Built on site and exposed to the elements of the weather. If you are building a custom home, construction to permanent (CP) loans are the way to go, however, up to 40% is required as a down payment. Regions Bank, Wells Fargo, Chase, and a host of other lenders can do CP loans.

Mobile Homes are built indoors in halves or thirds. They are sent to a location and placed on the ground. Mobile homes come with wheels and in order to receive financing, must be anchored into the ground and the wheels must be removed. The Mobile Home is then attached at the top and sides of the structure using rivets. Mobile Homes can be single, double or triple wide. Mobile Homes on wheels are treated like a car and has a tag registration on it. Mobile Homes, unlike modular homes cannot be stacked on one another. That only happens when tornadoes are present. Wells Fargo and FHA are still doing these loans.

Pre-Fabricated homes are built indoors. Unlike a mobile home, it is not split in two. Also know as PreFab, one single layer of felt is placed on the roof line across the entire structure. On top of the felt, plywood is placed before adding the tar paper and shingles. The felt keeps the heat and moisture out of the home. Because it is not split in two, the structure is more sound when hit with high winds. The home is then delivered to the site and anchored in. There are no wheels. Financing is usually found at the place where the home is built.

Here's another site: homebuying.about.com/cs/modulareducation/a/modular_homes.htm
1 vote Thank Flag Link Tue Dec 4, 2012
I checked with my two most reliable lenders, both of whom confirm that it must be new construction to qualify ... and yes, you would need the certification. This does not apply to already-built homes ... sorry. Perhaps there's someone out there who'd be willing to finance it ... you might want to try private lenders, who are always looking for places to invest. Best of luck ...

Al Geffon
(713) 213-6350
al@algeffon.com
Web Reference: http://www.har.com/algeffon
1 vote Thank Flag Link Mon Oct 15, 2012
Hi Jane,
I just saw your post and I do have a lender who does modular homes if you are still looking for one. We are mortgage brokers and work with many lenders but don't charge any broker fees. You can contact me at 281-592-0667, or at anna@codemarkfinancial.com. Thank you!


Anna Maria Durr, NMLS 266699, TREC 596662 Codemark Financial
2626 Richmond Ave., Houston, Texas 77098
0 votes Thank Flag Link Tue Dec 4, 2012
I just closed a sale on a double wide in Magnolia with an FHA loan. The home was built and permanently affixed to the property in 1997. It was not an easy transaction. It is not as simple as getting an engineer's certificate. The certificate needs to state that the home was installed per FHA guidelines not State guidelines which are less stringent. When the Engineering Inspector came out it was determined that the home did not meet FHA guidelines and had to be retrofitted. Fortunately the inspector held off on making an official report until we could get the unit retrofitted and then re-inspected. The seller's had to have each anchor (16 if I recall correctly) secured in cement to bring it up to State guidelines, to the tune of $3000+. You should also be aware that they will require identifying tags/plates to clear underwriting, one for each section on a double wide. These had to be obtained from an approved HUD site at an additional cost to my buyer. Prepare both buyer and seller for the possibility of additional expenses and time to close the transaction. My understanding is that you cannot get a loan for a single wide. The lender was Bank of Texas. Call me if you would like contact information for the lender and inspector. 281-798-4100.
0 votes Thank Flag Link Tue Oct 16, 2012
YOu can call one of the banks, but from what I understand it needs to be new.
0 votes Thank Flag Link Mon Oct 15, 2012
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