Thinking Ahead

Manufactured home sales in our rural area seem to continually be a significant portion of the real estate market. The advantage of quicker installation along with the fact that they are less expensive than site built homes makes this option for housing seem very attractive. If you are considering this as an alternative to building, or if you are considering purchasing an existing Manufactured Home (MH), there are a few things to consider that might enhance future resale possibilities.

Any of these homes built after 1976 that are delivered with axles attached to the frame, are considered Manufactured Homes (previous to that date were considered Mobile Homes), not to be confused with modular homes. Each section of these MH’s should have a serial number stamped to the foremost cross member of the frame along with an aluminum red HUD label with sequential numbers attached to the end of the home. Homeowners should take care to not remove or paint over such labels since they must be present to qualify for financing.

All MH’s that meet the nationwide HUD standards have a data plate or Compliance Certificate attached to the structure which is a piece of paper that contains important information such as; date of manufacture, HUD numbers, serial number, snow load etc., which should never be removed. This document can usually be found under the kitchen sink, in a bedroom closet, or even inside the electrical panel.  Snow load information is important for siting new homes since requirements differ in various jurisdictions. Since micro-climates in our area vary greatly in terms of snow fall totals, that should be a critical consideration!

Even though MH’s are licensed as a motor vehicle with a title, they can be and are usually converted to real property by eliminating the title when a conventional lender is involved. This assures the lien holder that the collateral cannot be easily removed from the property since it cannot be legally moved without a title.  

Lenders (conventional or FHA and VA) require a permanent foundation complete with tie downs and concrete runners. Most contractors simply follow county installation guidelines, rather than going the extra mile to meet FHA and VA standards which require longitudinal tie downs as well lateral. Pit set homes work well since the bottom of the footing must be below the frost line (24”). Certification by a structural engineer is a requirement for FHA loans. Even though most of these homes are bottom wrapped with their own vapor barrier, lenders require an additional barrier on the surface of the ground. Thinking ahead to the time when you may want to sell this property may make it easier than retrofitting at point of sale.