The Manufactured Housing Forums

In 2001 my wife and I decided to purchase an upscale manufactured home for our 5 acres in central Texas. The dealer, lender, and county tax assesor all stated that if we converted to house to real property it would be considered the same as site built and be classified as a single family dwelling. So we did and life went on.
Our lender always tried to get us to refi and cash in the equity between the original loan and payoff but we never did. Earlier this year when the rates were low and our lender sent another refi offer we took it. We qualified for a 4.5 percent loan. Everything went smooth until the appraiser showed up and started having a fit because it was a manufactured home and he didn't do those. The next day the lender called and backed out of the loan because they didn't do manufactured homes. When I stated they already had the loan, I was told that their records showed it as a single family dwelling. The third party online comparison that they used to prequalify showed it as a single family dwelling also.
Every lender I talked to after that shut the door when I mentioned it was a manufactured home. They had no interest in the real property certificate from the state or how the house was constructed or installed.
We did find a lender that specialized in manufactured homes and refinanced with them. All turned out ok. We ended up with 4.75 percent interest, and their appraiser showed the house only value at $27000.00 higher than what we paid. Not bad for a down market. My question is, does the real property mean nothing other that attached to the land? All the concrete we have poured and landscaping and garage we built doomed to be attached to something that everyone seems to black list? The appraiser had to comp to other manufactued homes in a diffent city because there werent any in my area. The mortgage broker said that under Texas law I could not cash in any equity in a manufactured home. Why are site built home evaluated individually by condition and construction and location but manufactured homes are viewed as all the same? Any input would be appreciated. Thank you

Mortgage lending has COMPLETELY changed since 2001.Your original lender might very well had different rules then than now. Instead of being negative you should be excited that in these time of the worse real estate market in history a professional appraiser has found your manufactured home has INCREASED in value while most stick built homes have lost about 25%. This says a lot about the way you have improved and maintained the property. The fact that you did qualify for such a low rate says a lot of good things about you and your homes. You should be looking at the bright side. millions of stick built home owners will envy your experience. Few if any stick built home owners could expect to see any property value increase. Only a very small percentage of home owners would qualify for such a low rate even in the fanciest of the stick built s. Continue to take care of your property and you will be able to enjoy it for decades to come.

"Cash out" refi mortgages are considered one of the main causes of the mortgage crisis. Because so many of them went bad they are now virtually impossible to get by even the most qualified of folks no matter what type of home they have. Have a good day.

You must be talking to my wife. She has been saying the same thing for months now. I do consider myself blessed, and since we have no intention of ever selling nor would we ever cash out the equity, it just doesn't matter what the guidelines, definitions,clauses, etc. say.

I lived in and managed a small MH park for 12 years. I have always been an advocate for MH's as an alternative for the expensive site built. Especially now with the MH's quality and options with what they are. Before I start telling someone else about what I have done, I want to get my facts straight about what I thought I was told. I didn't get the memo when the rules changed. Thanks again and any help is appreciated.

Declaring your manufactured home "real property" it is strictly for taxation purposes.  You are agreeing that the home be taxed as part of the real estate, instead of paying a motor vehicle tag or license plate fee.    In some states it is mandatory to declare you MH part of the "real property" if the home and land are in the same name(s).  In others it is the owners choice.   Either way when you apply for financing, refinancing, installation permits, or insurance what you have is a manufactured home and you will find that there are programs specifically for manufactured homes.   It is important that your providers specialize in manufactured housing.. You want people who understand how a home is manufactured and the best way to service it. It's always easier dealing with people who know their business and understand your needs.

The comments and advise the first two respondants gave you are absoultely correct. The fact that is classified as real property has everything to do with the way it is taxed and very little to do with financing other than the fact that you will have many more financing options available to you than you would if it were in a land leased community.