Here’s what you should know about manufactured homes.
Today we’re talking all about manufactured homes. Here are three things to look out for that will help save you time and money.
1. HUD labels/tags. These are metal plates attached to the back of manufactured homes and certify that the home was built to HUD guidelines. Every mortgage company requires manufactured homes to adhere to these guidelines so they can be financed. These guidelines started in 1976, so if a manufactured home was built before then, it most likely won’t be eligible for financing.
2. Affidavit of affixture. When a manufactured home comes out of the factory, it’s like a vehicle. It has a title and registration. The owner pays for the registration, then has the option to affix the manufactured home to a piece of land. All we have to do is go to the motor vehicle division, give them the title of the manufactured home, and get the affidavit of affixture. That is the legal document that gets recorded in the county, which combines the manufactured home with the land and makes it one piece of real estate. All mortgage companies require this for financing.
3. Don’t buy a manufactured home that has been moved more than once. These homes are designed to be moved once and only once. If they are moved a second time, it becomes ineligible for FHA and conventional financing. When the home is moved the second time, it causes a lot of damage and stress to the property. You can find out if a home had been moved before on the affidavit of affixture. Cash investors get burned by this issue a lot, so be careful if you or someone you know is thinking of purchasing one.
If you have any questions for me about this topic or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.