Manufactured Home Loan Regulations

[Fred]

Hi,

I'm curious about something my dad was told. He is trying to sell his MH through a realtor. Apparently his agent told him that a somewhat recent federal regulation did not allow banks to provide loans to people trying to buy a manufactured home.
Perhaps my dad misinterpreted what the agent said. I gather that there were some people interested in buying my dad's place, but the agent said that it would be difficult for the interested party to get a loan because of a federal regulation against loans for manufactured homes.
My dad's place *is* a double wide, 3bd, 3bath, manufactured home, not a "mobile home". It was built in 1993, and my dad is the original owner. The home is on a leased lot (in Idaho), not on private land.

If someone could provide me with some info about this I'd be very appreciative. Since I've rented all my life, I'm not very familiar with home financing. But I looked around the Web some, and the information about this "regulation" seems a bit odd to me since there are many sites offering loans to people trying to buy manufactured homes.

Thanks so much in advance,
Fred

[rmurray]

Your dad's home is somewhat unusual because of the leased land....but the real estate person is silly as well...

There are many lenders who do nothing but finance manufactured homes on rented and leased land....Also depending on the terms of the lease...there are some traditional mortgage programs available for homes on long term leased land...

Just seems odd that a real estate "professional" would bother listing your dads home if there was no way to sell it..If might be better if your dad asked to be released from his obligation to this real estate concern and found a much better one...Have you dad contact a few mortgage lenders in the area that are familiar with this lease (assuming it is a long term...30 yr or more lease)...they will know about finance options...Also..home only finance companies are very common...you can find many of them at this site..

[Fred]

Hi and thanks!

Actually, just as you remarked about the "professional", I asked my dad the same question: why would a company even try to sell a place for which no buyer could get a loan?
I'm further perplexed because the RE company is a fairly large company in the West, so I would think their agents would know what they're talking about.
So I wrote an email and told my dad that the next time he talks with the agent he should try to get some details that are more specific about problems potential buyers might face concerning loans - especially details about this "regulation" the agent mentioned.
I also sent a link to my dad to a site that specializes in loans for manufactured homes. It was the site of a company that had this message board listed on its links page.
I don't know if it would change your reply any, but I used the term "leased lot" just to indicate that my dad's home is not on land he himself owns. It's actually a rather spacious "trailer park" with wide paved streets, underground utilities and even a rec building with a swimming pool and hot tub.
I'm vaguely aware that there is a difference between a home on land that's owned by the home owner and one that's not, but there is no long term lease involved where my dad rents - nothing more than a year anyway.
I appreciate what you've already told me and I'll suggest that he phone a few local mortgage lenders and see what they say.
Thanks!
Fred

[rmurray]

Home only finance is plenty available...You clarification only makes my statement about the real estate person more correct...It seems it would be unethical to take a listing with ZERO knowledge of the product they are selling..

Tell your dad to list his home here in the MLS section...

There are about 500,000 used manufactured homes sold last year...many in parks..almost all were financed..wish him good luck

[Fred]

Thanks again,

I'm sure what you've told me will be a real relief to my dad.
However, I do want him to get some clarification from the agent he's working with just in case he misinterpreted something the fellow said.

But that last bit of info you provided about the half-million manufactured homes sold last year will boost his confidence, I'm sure of that.
I really appreciate the info, and I will mention this site to him.

Fred

[Cheri]

Hi,
I live in California and I need a listing of MH finanace companies in California. I am trying to refinance but I am getting a lot of sorry we don't finace manufactured homes.
Thanks,
Cheri

[Tanya]

We are refin. our mh and we kept hearing the same, however we found a bank that does fha loans and they will still loan for mh. So good luck!