Home Buying in Pearland>Question Details

Gina, Home Buyer in Alvin, TX

Is buying a mobile home different than a traditional house?

Asked by Gina, Alvin, TX Wed Apr 27, 2011

Are the regulations different? Is the lending really different? I've heard you have to have a concrete foundation, and you have to take the wheels off. And you have to get a different kind of loan, rather than a home loan.

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IT IS DIFFERENT IN THE SENSE THAT LENDING HAS CHANGED. TAKING OFF THE WHEELS???? THAT'D BE VERY OLD. NEWER MOBILE HOMES DON'T HAVE THEM. LOANS USUALLY COME FROM THE PLACE THAT SALE THEM. THEY DEPRECIATE IN VALUE, SO LENDERS TEND TO STAY AWAY FROM THEM. HOWEVER, PEOPLE CAN BUY THEM FOR THAT REASON...SOUNDS WEIRD BUT TAX WISE ITS A "LOSS"! YES, THEY DO NEED ANCHORED ON A FOUNDATION/BASEMENT. FHA WOULD LEND ON THEM AS LONG AS THEY HAD THE "TAGS" ON THEM, BUT AGAIN, LENDING HAS CHANGED!
0 votes Thank Flag Link Wed Apr 27, 2011
Gina, The Tex. Dept. Of Housing and Community Affairs has an office in Arlington ! Tyler, Austin, Lubbock, San Antonio and Houston. You must understand if you are asking your question about a Manufactured home ie mobile home or a Modular home. Different requirements for each one and are sometimes confused with ea.other.. Modular requires a permanent foundation. Mfg home is installed to the requirements of the home builder. If builders specs are not available, the state has generic specs. Hope this helps
0 votes Thank Flag Link Wed Apr 27, 2011
This depends if the Mfg. Home title has been surrendered to the state and combined with the land and sold as Real Estate as apposed to Chattle . Chattel is property like cars, and Mfg homes which have titles. The Texas dept of housing and community affairs handles this and give you a more detailed explanation plus the way to handle this. And yes lending institutions handle these different. So I would advise you contact a few different lending institutions and see what their criteria is.
0 votes Thank Flag Link Wed Apr 27, 2011
Good answers! Talk to your lender-they will spell it out for you.
0 votes Thank Flag Link Wed Apr 27, 2011
Don't waste your hard earned money on a home that depreciates. You will never come out ahead. There are some fabulous buys out there with so many short sales and pre-foreclosures. Even homes not in the distressed catagory are priced competatively. Find a good buyer's agent that can access a list of current properties for sale in your price range. I repeat, stay far away from mobile homes.
0 votes Thank Flag Link Wed Apr 27, 2011
And traditional homes have been appreciating in the past five years?
Flag Thu Aug 9, 2012
Yes... in a way very different as I know it here in New York. Mobile homes are not real estate. Traditional homes are real estate.

Mobile homes generally go down in value, most traditional homes do not.

I would not say to buy a mobile home, unless you are also buying the land on which it sits.

If you are talking about a manufactured home, and are using the "mobile" home term for it, the manufactured home can be considered a "traditional home" if it is placed on a foundation, and follows the law for NY or what ever state you live in.
0 votes Thank Flag Link Wed Apr 27, 2011
Something to keep in mind, All outstanding documents of title are considered to be - Statement of Ownership and Location. - This Document is called SOL - This document changes the property from personal into real property in the State of Texas. Yes, in Texas it can be done. And it is issue by the State of Texas Manufacture Housing division.
Agents! Get the facts, check the web site http://www.tdhca.state.tx
0 votes Thank Flag Link Wed Apr 27, 2011
What lenders look for is the HUD Certification label attached on the left side of the home on the exterior, one foot away from left corner. HOme must be at least 400sqf and the home must be permanently affixed to foundation, foundation must be engineer designed. Majority of loans are FHA loans but if the home had been transported, the only way to go is with a conventional loan with 20 percent down. Problems may occur if the land value exceeds 40% of the home value and if the loan is for less than 50,000, you may encounter lots of difficulties trying to find the right lender in that scenario.

Hope this helps.

Elena Penso Quiroz, ABR, SFR
CHAMPIONS REAL ESTATE GROUP
713-225-1986 281-723-0625
0 votes Thank Flag Link Wed Apr 27, 2011
Gina - You have I think most of the answers you seek. I would also advise you to work with a local buyer's agent if you are ready and have them show you what the choices are in the amount you have budgeted for a monthly payment. It may be that you can find a double wide "mobile home" that is already set up with the proper foundation and all that is at a great buy, perhaps a foreclosure on an acre or more of land. Financing can be challenging and Wells Fargo and bank of america have both been known to fiance but much will depend on age and condition. Before I go out and put a deposit or earnest money down I would make sure a lender is going to fiance it. You may also want to look at modular homes you may find them also affordable and on larger lots than traditional homes. As you educate yourself so that you can make the best choice consider traditional homes, modular homes that generally appreciate (gain value over time) verus the mobile or doublewide homes that tend to depreciate (lose value over time). I hope this is helpful and I wish you the best as you make your home choice.

Deborah Miller, Real Estate Broker
Coldwell Banker HPW
0 votes Thank Flag Link Wed Apr 27, 2011
We learned today through one of our continuing education classes that it is harder to get a loan on mobile home according to the lender who was presenting the program. You may have to go to your bank or other lending institute to see if they will finance the purchase for you. If you are buying land, be sure and have your agent check to see if there are any restrictions on whether or not mobile homes are allowed as some areas or even the seller may have had something written in their contract stating that no mobile homes are permitted as it may effect the property values of surrounding homes in the area. Get a good agent, do the reasearch and talk to a variety of lenders for your best option. They are the "horse's mouth" in this situation.
0 votes Thank Flag Link Wed Apr 27, 2011
Yes, it is different because mobile homes are considered personal property not real estate and not all financing institutions will finance them.
0 votes Thank Flag Link Wed Apr 27, 2011
Yes, but financing depends upon what you mean by "mobile"
There are mobile home trailers that have AC/DC power, bottled LP tanks and are usually cited in parks. These are bascially personal property financed with chattel mortgages.
Then there are manufactured homes - delivered on a chassis but usually "double-wide" or "triple-wide" with no DC power and are designed to be permanently affixed to a site. You can obtain FHA and other mortgages for these with slightly higher rates and some restrictions.
Modular homes are financed like stick-built homes
You'll need a construction loan if the home is not already on the foundation.
If you need help e-mail me and I'll look up a colleague who does these sort of loans. I used to finance these types of property but no longer can do so.
Tom
Thomas.Stevens@flagstar.com
0 votes Thank Flag Link Wed Apr 27, 2011
Sure is Gina. Financing can be trickier and inspections can be more revealing. I encourage you to engage the services of a qualified real estate agent as well as a qualified lender to determine your best course of action.
0 votes Thank Flag Link Wed Apr 27, 2011
Yes, it is different. The financing is different, and it is not easy to resell because of financing. There are "package" financing available which include the land, manufactured home, and improvements. These will require that the manufactured home be put on a foundation. Make sure you ask all these questions from you dealer and or agent.
0 votes Thank Flag Link Wed Apr 27, 2011
Yes. While a mobile home can be more affordable, financing a mobile home is different than a traditional home.

http://www.bankrate.com/brm/news/mtg/19990722.asp

Be sure to ask your bank or lender for methods.

Stephanie Suttle
Prudential Gary Greene, Realtors
Pearland, Friendswood, Clear Lake

http://www.stephaniesuttle.com
0 votes Thank Flag Link Wed Apr 27, 2011
Very different.
Higher interest.
Maybe more monthly fees due to lot rental.
Often difficult to resale.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Wed Apr 27, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
It depend if you are buying new home are used. from a dealer or owner. the lending is very differant form a lot or dealer. It is just like buying a car. If you are buying land and home together it must be return to real estate to be made a loan together. some lender do want you to rmover wheel. it just depends on the loan. I work with a lender that does mobile home loans. that is really th place to start. with the lender.
0 votes Thank Flag Link Wed Apr 27, 2011
It is different. I can only speak for California.

You are either on owned land or in a rental park.
All mobile home financing is different and very different than a traditional home.
The age of the home, single, double, etc make a difference.
The down required and interest are greater.

It is best to talk with a mobile home lender but they are going to need to know the details of the home, location, etc. before rendering a decision on your cost.

If you are in a lease park you have to qualify for the park along with the mortgage.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Wed Apr 27, 2011
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