The understanding of manufactured homes and their associated communities by the highest level of FHA and HUD officials as well as our political leaders in Washington was also flawed. Rental parks that converted to resident ownership through the condominium process were viewed on paper as developments with lower quality homes. In reality, these are developments like Rancho Carlsbad and Champagne Village (just two parks to cite examples with golf courses, enviable locations and amenities with home prices in the $300,000-$500,000 range. Far from substandard.

On March 29, 2007, H.R. 1852 (the Expanding Homeownership Act of 2007) was introduced into the House of Representatives by Congresswoman Maxine Waters (D-CA). The bill has been referred to the Senate Committee on Banking, Housing and Urban Affairs. Passage of a compromise version by both houses of Congress is expected to pass by the first quarter of 2008. When The U.S. Congress passes the FHA Modernization bill, this bill will bring the benefits of reverse mortgages and comprehensive mortgages to homeowners that have been excluded for too long. HUD officials have given assurances that the logistics will be implemented quickly.

Some of the logistical issues on a manufactured home are as follows to secure an FHA insured loan. Proof that the home is newer than June 15, 1976 Engineer’s Certification that the home is on a permanent foundation and that any attached buildings to not impact the structural integrity of the home and that the skirting enclosure is HUD compliant.

Certainly there are other issues pertinent to the loan but without the two above, FHA financing cannot be procured. On The Level General Contractors can assist both in the engineer certification process or if necessary retrofit the home to meet the HUD Handbook 1996 guidelines.

Author Bio:
ON THE LEVEL General Contractors (B & C 47 521400) is a family-owned company specializing in the maintenance and retrofitting of mobilehome and manufactured home understructures 433A permanent foundation contractors.

Success of the mobile home park conversion process is largely attributed to talented legal advisors that understand the complexities of the conversion process and can liaison with residents, homeowner’s association board of directors, building officials and lenders. As the trends in lending continue to change, the underwriters have become more proactive in their demands on the structural components of a manufactured home’s understructure for two reasons: safety to protect their investment and a desire to have a security interest as real property.

In order to understand the lender’s desire for security interest, one needs to understand that manufactured homes are unique housing because they can either be registered as person property (chattel) i.e. a car or recreational vehicle or real property like a stick built home (realty). The manner of classification is determined strictly by the foundation beneath it. In order to be classified as real property, the mobile home foundation must be considered “permanent”. For homeowners in existing structures, the thought of retrofitting their foundation to something permanent sounds daunting and expensive. Fortunately, wise engineers and manufacturing companies have found numerous methods to meet both safety and lending requisites without resetting the home. There are a variety of systems that are available to the homeowner and borrower. Although there is still a cost associated and a permit burden, the cost is relatively moderate considering the value received. Having the home attached through the process of a foundation retrofit conjoins the land and home, making the two entities a unified piece of real property, ergo protecting the security interest of the lender.

Therefore in the conversion process some lenders often require a 433A document which has been signed by the local permitting jurisdiction (building department) showing that the home is on a foundation. In order for the building department to make such a sign-off, they must be presented with a set of plans generally with a Standard Plan Approval number which has been certified by a structural engineer. Once installed, they inspect the system, sign the 433A and then record the 433A. Some lenders still accept the 433C document which simply converts the land to real property but the house retains it’s personal property classification. However, this has become increasingly less common as lending requirements tighten.

Also this area has been a source of confusion and error for some escrow and title companies. It is common to see that the land and home show different owners because escrow or title did not understand the unique titling issues associated with manufactured homes. Again, using specialists that deal with the peculiarities of manufactured homes is important so that clerical errors don’t turn into big lawsuits later on.
On The Level is uniquely qualified to work as a team member to assist in the conversion process, having the ability to champion the homeowner’s cost concerns yet understand the local jurisdictional building requirements as well as the lender requirements. While there are many retrofitters that are able to “install only”, the paper work and associated follow-through in the 433A or engineer’s certification process can often cause loans to be delayed or fall through altogether. On The Level is a turn-key company that navigates the paperwork from start to finish, working with all players in the park conversion process.

Author Bio:
ON THE LEVEL General Contractors (B & C 47 521400) is a family-owned company specializing in the maintenance and retrofitting of mobilehome and manufactured home understructures 433A foundation contractors.