I am in the early stages of looking into a little chunk of land (5 acres) but apparently since there is a manufactured home already on it, no lender will touch it. Surely there is someone out there that would still offer a loan. Has anyone else ever dealt with this before? Any info would be greatly appreciated.

It can be done, but with 5 acres you could be running into issues with high cost rules which could be why lenders won't touch it. What is the total purchase price?

229K

Manufactured or Mobile home? Big difference

listing says mobile home, but I know it has a enclosed porch thats on a slab that is built into the side......guess it technically still could be "mobile" with some novice demolition work.

Are you buying to live there?

in a perfect world yes, but I am stuck in Houston for the foreseeable future and it would just be a second/recreation home.

Unfortunately the property doesnt fit in a typical loan box. First if it is not a primary home you cant use FHA the most common financing for mobile homes. You also could be running into the a land value vs home value. That is to be considered residential the base rule is the house must be 50% of the total value. That 50% is not set in stone but should be at least 35 and better over 40%. I doubt that is the case at 229K. So Fannie will consider it ranch/farm for many underwriters/lenders. And yes that makes no sense. And as always the lender could finance if they want to or make an exception.

I would reach out the the ranch land lenders such as Capital Farm Credit. I would also talk to local banks to see what they can do. They do not have any of the above restrictions. Different regulators.

FYI to all, mobile home is complete and wheeled on to a property. Manufactured or Modular is a home that has a slab poured and transported in sections and put together on site. Modulars have much more financing options then mobiles.

Pm or call me. I am doing one now just like this in Stockdale for $225. SW with addition. Owner occupied is the key for FHA or VA to take it.

Bbazar@rpm-mtg.com

Yes I just bought 20 acres with mobile home this past July. Since my mobile home was not worth the value of the land I was unable to obtain a home loan and had to get a land loan instead. I went through Capital Farm.

SteveBott said:

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Unfortunately the property doesnt fit in a typical loan box. First if it is not a primary home you cant use FHA the most common financing for mobile homes. You also could be running into the a land value vs home value. That is to be considered residential the base rule is the house must be 50% of the total value. That 50% is not set in stone but should be at least 35 and better over 40%. I doubt that is the case at 229K. So Fannie will consider it ranch/farm for many underwriters/lenders. And yes that makes no sense. And as always the lender could finance if they want to or make an exception.

I would reach out the the ranch land lenders such as Capital Farm Credit. I would also talk to local banks to see what they can do. They do not have any of the above restrictions. Different regulators.

FYI to all, mobile home is complete and wheeled on to a property. Manufactured or Modular is a home that has a slab poured and transported in sections and put together on site. Modulars have much more financing options then mobiles.

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This information is incorrect / incomplete. The term "mobile home" is now only used to refer to pre-1976 constructed manufactured housing units. After 1976, what many people consider "mobile homes" that come with their own set of wheels are formally referred to as MHUs or HUD Code units. They are build to a national standard and typically remain separate from the real property - allowing them to be sold and moved to another property. They even have a fancy label and unique ID number like a vehicle.

Modular housing is also constructed offsite and are transported to the install location and placed on a more permanent foundation and become one with the real property like a traditional stick-built home. They must also comply with local building codes and standards. As such, at least in Texas, local municipalities may not restrict the placement of a modular home within their jurisdiction as long as it meets local codes / requirements along with any HOA requirements (as applicable).

Summary - there are 3 main single-family, detached housing units common in US... manufactured housing units (MHU or HUD Code), modular housing units, and site-built / stick-built construction. MHUs are also typically financed separately from the land.

Great info. Important to know the modern terms and what they mean.

Sounds like it is a modified mobile home. You are screwed. That was the strongest term TexAgs would let me get away with. Change the contract to a land contract and get a land loan.....

Ummm I think that was my answer!

SteveBott said:

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Ummm I think that was my answer!

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Backing you up Steve since Captain internet seems to think a technical answer was better. An appraiser is going to see that addition and it might as well look like this.

Yea I debated whether to respond to the Captain. Lenders do not give a sheet what a manufacturer or industry or the government calls the home. It's a mobile home in the lending world. My answer was based on the OP looking for a loan. Not the legal definition.

The underwriter looks at the appraisal and says "mobile home."

Deats99 said:

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SteveBott said:

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Ummm I think that was my answer!

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Backing you up Steve since Captain internet seems to think a technical answer was better. An appraiser is going to see that addition and it might as well look like this.

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That's the bug-out wing, very cool!

ought1ag said:

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I am in the early stages of looking into a little chunk of land (5 acres) but apparently since there is a manufactured home already on it, no lender will touch it. Surely there is someone out there that would still offer a loan. Has anyone else ever dealt with this before? Any info would be greatly appreciated.

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Where is it? I'm looking for a used MH. Maybe I can buy the MH so you can buy the land.

its down towards corpus. thanks for the offer, but it appears i am going to have to walk away from this one. ill keep you in mind if something else pops up along the way.

SteveBott said:

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Yea I debated whether to respond to the Captain. Lenders do not give a sheet what a manufacturer or industry or the government calls the home. It's a mobile home in the lending world. My answer was based on the OP looking for a loan. Not the legal definition.

The underwriter looks at the appraisal and says "mobile home."

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Man, I also hate when people provide answers based on their knowledge. My information is not from Google, its from 3 freakin days of training the state makes you attend in order to make, license and install manufactured housing units.

Manufactured homes have wheels, meet national HUD code and are installed on a property in a manner that typically allows for it to be separated from the property.

Manufactured does not mean modular. Modular, at least in Texas, is treated the same as stick-built.

Strange though, I would think not only legal, but correct definitions in the loan world would be relevant. Maybe not.

And I am a lender. The terminology I use is from my world not yours.

Yea, WTF do I know. Only built 100+ houses a year for past 10 years, including placement of modular homes and installation of MHUs (but 95%+ stick-built).

I said clearly in my post that MHUs are what most people refer to as mobile homes. But you must have been distracted when trying to measure your internet tallywacker.

Dude what is your problem? You came on and said I was wrong. A second lender confirmed my answers. Are you a bank or and mortgage lender?

The OP asked a lending question. I answered it. In lender terminology. Using our terms define what loan programs that he may have been eligible for.

SteveBott said:

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Dude what is your problem? You came on and said I was wrong. A second lender confirmed my answers. Are you a bank or and mortgage lender?

The OP asked a lending question. I answered it. In lender terminology. Using our terms define what loan programs that he may have been eligible for.

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I only have a problem with misinformation.

Let's try this again. The below statements are is wrong, not matter what world you live in. And you said it was "FYI to all" in your second statement, which someone else may then rely on to inform them.

"Manufactured or Mobile home, big difference."

"FYI to all, mobile home is complete and wheeled on to a property. Manufactured or Modular is a home that has a slab poured and transported in sections and put together on site. Modulars have much more financing options then mobiles."

If someone uses the term "manufactured home" there will most certainly be differences between in financing vs modular or stick-built. Modular is considered real property and manufactured , in most instances, is considered personal property.

You are correct in that using the right terms defines that available loan programs. My post clarifies that manufactured does not equal modular. Both are off-site, factory-built and the similarities end there.

From your posts on this forum you know your business. My post was to correct an area that oft gets muddled together, particular when dealing with local building officials as to what is allowed vs not allowed in their jurisdictions.

If OP buys the land with financing only on the land, they may run into future issues with the existing structure. Hell, does OP know if the structure is even owned by the land owner? That should not be an assumed fact whatsoever.

Additional, more complete information allows the OP to be better informed. There was no need to get offended by being exposed to information you may not be aware of. Its not meant as negative towards you in any manner.

Dupe post.

Whatever partner. Good bye

If everyone actually read the HUD 4000.1 handbook, this conversation wouldn't have taken place.

And to top all of it off, I have to work with Title co. To make sure Mfg./MH actually have title surrendered and converted to Real Property to make the mortgage. It gets a little tricky on cash out refinances sometimes....off topic a bit, but the whole real property vs. Personal property requirements, not to mention engineer inspection/certification when there is an attached addition just adds to the fun. I am always up for a challenge so let me know if I can help.

Year of the Germaphobe said:

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If everyone actually read the HUD 4000.1 handbook, this conversation wouldn't have taken place.

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Man this devolved wonderfully.