Updated 4/20/2017
It is not good to permanently set up a manufactured home in one location, and then move it to real estate that you own. The biggest reason is that if the home is set up on land that you also own (not rented land), the home can never again be financed with an FHA or Conventional real estate loan because the home has been moved. VA allows it, and some lenders will do it, but the home has substantially reduced marketability, and a VA buyer must be fully aware that this will be an issue in selling the home down the road. And, unless an appraiser uses other moved homes as comps in the appraisal, the veteran is likely over-paying for the home.
Manufactured homes technically are made to be moved once....from the factory to the lot it will hopefully sit on for the rest of it's life. It is OK to go to the dealer's lot for a while....they know how to take special care of it during it's stay. But setting it up once on a rented lot or owned land for a few years, then moving it to a piece of real estate means that the home will no longer be eligible to financed by FHA and Conventional (Fannie Mae and Freddie Mac) loans.....which is the vast majority of loans.
The reason is that the homes are subject to serious structural stress during the second uprooting and move that a home is not constructed to regularly endure. So, loan guidelines prohibit lending on these homes.
The move will usually show up on the affidavit of affixture....which is required for all loans (see previous blog post).
At the top there is a section that notes if the home has ever been taxed at a different location. If it has....no FHA or Conventional loan.
Cash buyers who do not have the advice of an informed Realtor, sometimes get burned by this issue. If there is no loan process occurring which would expose the issue, it can bite them when they sell. Investors have also been known to buy homes that got repossessed from parks and move them to owned land without knowing loan guidelines. Needless to say, if you cannot sell the home to a buyer that needs to borrow on the home, the home and land it sits on are worth far less because it's marketability has been seriously compromised.
Call any time if you have questions....
Eric North NMLS 234754
Arizona Wholesale Mortgage NMLS: 19254 MB0902107
602-524-2454
It is not good to permanently set up a manufactured home in one location, and then move it to real estate that you own. The biggest reason is that if the home is set up on land that you also own (not rented land), the home can never again be financed with an FHA or Conventional real estate loan because the home has been moved. VA allows it, and some lenders will do it, but the home has substantially reduced marketability, and a VA buyer must be fully aware that this will be an issue in selling the home down the road. And, unless an appraiser uses other moved homes as comps in the appraisal, the veteran is likely over-paying for the home.
Manufactured homes technically are made to be moved once....from the factory to the lot it will hopefully sit on for the rest of it's life. It is OK to go to the dealer's lot for a while....they know how to take special care of it during it's stay. But setting it up once on a rented lot or owned land for a few years, then moving it to a piece of real estate means that the home will no longer be eligible to financed by FHA and Conventional (Fannie Mae and Freddie Mac) loans.....which is the vast majority of loans.
The reason is that the homes are subject to serious structural stress during the second uprooting and move that a home is not constructed to regularly endure. So, loan guidelines prohibit lending on these homes.
The move will usually show up on the affidavit of affixture....which is required for all loans (see previous blog post).
At the top there is a section that notes if the home has ever been taxed at a different location. If it has....no FHA or Conventional loan.
Cash buyers who do not have the advice of an informed Realtor, sometimes get burned by this issue. If there is no loan process occurring which would expose the issue, it can bite them when they sell. Investors have also been known to buy homes that got repossessed from parks and move them to owned land without knowing loan guidelines. Needless to say, if you cannot sell the home to a buyer that needs to borrow on the home, the home and land it sits on are worth far less because it's marketability has been seriously compromised.
Call any time if you have questions....
Eric North NMLS 234754
Arizona Wholesale Mortgage NMLS: 19254 MB0902107
602-524-2454
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