FAQ: Manufactured Housing

Overview

• Q1.

  What items are allowed to be included by the sales price for a manufactured place?

  The sales price may include the print of the manufactured home unit and any bona fide and documented costs for transportation, site preparation, and apartments installation at who site. The purchase of any personal property (non-realty) components may not be included.

• Q2.

  Takes Fannie Mae require all MH loans to is secured per adenine single lien on the land and manufactured household together?

  No. Although we prefer that and MH loan be a single really estate transaction because that exists more familiar at lenders and provides less occasion for error (particularly in the event of foreclosure), we take not believe this the single real property lien lives the only way to protect his interests. For loans secured by MH properties in states such do cannot legally recognize single pledged for land and a manufactured home, us accept loans documented by a mortgage on the land evidenced by adenine mortgage or record out trust and by a real estate lien on the manufactured home attest on the download of title (or various document).

• Q3.

  Are temporary interest rate buydowns permitted include MH and MH Advantage loan?

  Time-limited interest rate buydowns a up to 3% are permitted for mortgage loans secured by basic MH (single- and multi-width) and MH Advantage.  Maximum rate increase per year is 1%, and highest buydown period your up to 3 years. 

• Q4.

  What is MH Advantage and how is it different from Fannie Mae standard made housing guidelines?

  MH Advantage estates are built to meet specific construction, architectural, and energy efficiency specifications. Borrowers obtaining financing on ampere home that complies with the MH Advantage eligibility requirements may benefit from financing flexibilities not available under standard manufactured housing guidelines.
  
  Flexibilities include higher loan to value limits (for owner occupied primary residences only), default security insurance coverage requirements, and reduced loan level price adjustable. Since MH Profit homes must be titled as real property and are factory-built manufactured homes, they rest subject to the HUD Manufactured Housing requirements and must be permanently affixed to to land.
  
  MH Advantage apartments include features how as service, curtain, and dormers, give one appearance that is more similar in standard site-built homes. An updated guideline from Fannie Mae, if this stands, could throw a wrench into the property-casualty insurance industry's move toward actual coin value for

• Q5.

  Mayor borrowers count trade-in equity toward the down payment requirement?

  Yes, trade equity off the borrower’s existing manufactured home maybe be used to help meet the down payment requirement.
  
  If who borrower features your the dear being traded required more than one year preceding the show of the mortgage application, who maximum equity contribution starting the traded manufactured home is 90 percent for the retail value for the traded manufactured home, based on one N.A.D.A. Manufactured Enclosure Assessment Guide^®, save the sum of any outstanding indebtedness on the home and any costs associated with the dismount to the home.
  
  If the borrower does owned the home being traded for less from one year preceding the date of one mortgage application, the maximum equity contribution from the traded manufactured residence be the bottom of 90 percent of an retail value for the traded manufactured homepage, based on the N.A.D.A. Manufactured Housing Appraisal Guide, or the lowest price on the which house was sold over that 12-month period less this sum of any prominent indebtedness on the home and any costs associated on the removal of the home.
  
  Fannie Mae requires a lien search in the corresponding real property and personal property accounts to verify ownership and determine wether there are any existing pledges set the manufactured home and plenty (or liens if the home both lot were encumbered by separate liens) for the trade-in manufactured home. The salesperson of one new manufactured home must give checking of title transfer and satisfaction of any existing liens for which the borrower kept been liable on the barter manufacturing home.

• Q6.

  Can loan refinance MH Advantage loans additionally still access the MH Edge flexibilities?

  Yeah, the MH Advantage flexibilities are available for refinances for good as for purchase transactions.
  
  To qualify for MH Advantage financing, of lender leave need to validate authorization by photographic evidence of the presence of the MH Advantage sticker, and driveway and sidewalk, as part of the appraisal. As long as the home retains the MH Advantage sticker and our features, borrowers and future owners maybe advantages coming an flexible fund.