financing through FHA

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Confused

financing through FHA

Post by Confused » Thu Jan 23, 2003 11:16 pm

Have heard that FHA very recently is making financing a used manufactured home with an attached lot much more difficult. Need this information. Am seriously looking into purchasing used home with lot.

rmurray

Re: financing through FHA

Post by rmurray » Fri Jan 24, 2003 5:10 am

The FHA rules have not changed..They do not finace homes that have been moved....
That means if a home is already on a piece of land and an FHA inspector determines that it is set to their standards..FHA is fine..but if the home is on a dealer lot or in a park and must be moved to the site the FHA will not finace the home...
That same inspector will also be looking at the condition of the home..any problems have to be fixed before the financing can be done...just as in stick built homes and FHA..
Also...the seller must make many disclosures and promises...including offering a warranty...many sellers will not...so you must buy an extended warranty...

What is to keep a dealer from buying land...putting a used home on it and selling the package FHA...WELL federal prison comes to mind...The seller disclosure include statements that the home has not been moved and FHA frowns on fraud..

None of this is new...

lou

Re: financing through FHA

Post by lou » Sat Jan 25, 2003 10:05 am

i am confused, i have a lender that says he will get us a FHA loan, for a mobile home? the home will be ordered thru the dealer. not already on the home. is this what you are talking about.

rmurray

Re: financing through FHA

Post by rmurray » Sat Jan 25, 2003 10:54 pm

The original post mentioned that FHA was hard for used homes...
As far as ordering a new home from a dealer is concerned...no problem..FHA is fine and there will be no porblem...Remember to shop rates and closing costs..these can vary a lot from lender to lender..Even on FHA...

lou

Re: financing through FHA

Post by lou » Sun Jan 26, 2003 10:06 am

oh really? any advice on how to shop for that best rate? thanks for clarifying for me.

rmurray

Re: financing through FHA

Post by rmurray » Sun Jan 26, 2003 4:33 pm

A common misconception is that all FHA laons are the same...The FHA does have maximum guidelines the lender can charge...but lenders compete by offering lower rates and lower closing costs and fees...I have seen some whos closing costs are as high as 12% of the loan and others as low as 6%...Rates right now will be from 6 to 7%...Pretty big difference for you...Get the details of the loan that you have been quoted...let them know you are going to shop and compare...

sj

Re: financing through FHA

Post by sj » Sat Feb 01, 2003 12:50 am

murray, Can you afford me any information regarding mfg. home conv. loans?
Are the requirements regarding financial and foundation any differant than VA or FHA?? Do I still have to have a certified builder install a foundation if required?
We are located in Texas.

rmurray

Re: financing through FHA

Post by rmurray » Sat Feb 01, 2003 5:57 am

Yes...
First...I cannot comment on any TX or local laws..for info on that you must talk to your building inspector in your county..
From a lender stand point the state you are in is not important..All conventional sources will be very happy with a FHA/VA foundation...but in addition to that they are usually much less detailed in their requirements...
Basically..the home has to be set to the requirements of the set up manual...running gear and hitch must be removed..an appraiser must state the home is permanently affixed to the property (as opposed to temporary set like on dealer lot)...and it must meet local requirements if any (that means if the building inspector issues a final ok or occupancy certificate all is well)...Actually it is nothing special..
There are many myths about the term "permenent"...Actually it does not mean much more than every set up that is legal and inspected..

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