Sudden discrimantion against MH?

[Dave]

We’ve been working on putting a doublewide Nashua on a foundation on our property. All was going rosy… home picked out, negotiations were being worked out with dealer, etc. Went to our banker to get appraisal routine started and was informed that as of 7/21, all manufactured construction loans were going .5% higher than site built construction loans due to the beginnings of a negative trend towards manufactureds in general by the banking/mortgage industry… i.e: appraisals coming in lower, LTV being less favorable towards manufactured, etc. Dang! Anybody else heard of this new trend? Or is my banker blowing smoke? Even though it is going on our property (which is paid for) on a sturdy foundation, he said they are not being treated as equal to site built as they were a month ago, and that things were only going to go downhill for manufactured in general. Keep in mind, he didn’t have to tell us this, and it would have been a better deal for him financially to go ahead and do the manufactured without warning us, he just said that he felt it was his professional responsibility to warn us of future negativity brewing towards manufactured on the horizon. And, he said this was all beginning since the middle of July.

Has caused much confusion in our household, at least the Gallatin is paid for, and lord knows we have gotten our $17,000 worth out of it in the last 23 years.

Dave

[rmurray]

One of the loan wholesalers...Fannie Mae has changed its rules on manufactured homes...

They did NOT change the rate...They DID add a 1/2% fee to the closing costs...If the loan officers bank raised the loan 1/2% per year they are making more profit..that is all...Other changes now require 5% down (instead of 3%) and term will be limited to 20 years unless you put down 10%....\

All of that said...this wholesaler only handles about 20% of all mortgages...The other 80% are wholesaled to other lenders or kept in house by major lenders..The rule changes do not relate to them...

Shop other lenders...ask you loan officer if they do any Freddie Mac loans...rules have not changed with them yet..

For those want small downs...FHA has not changed its rules..3% down is all that is required...I would hope your dealer is up to speed and should be able to help you..

[jgn]

When I talked to Wells Fargo they quoted a 1/2% upcharge for manufactured housing over site built. On a 100K note this amounts to about $25.00 per month or $4,500 on a 15 year mortgage or $2-3.00 per foot depending on the size of the home.

[Eugene]

The important question with all of this is to ask why the change? What has cuased this? This change wasn't just done for fun.

[rmurray]

The answer to your question is quite long...

The basics are that Fannie Mae "says" that they are having more foreclosures on manufactured homes...but...there is a little controversy about that statement...

Go to this address and read Fannie Mae's reasoning and a responce...


http://www.journalmfdhousing.com/articl ... e=yes&ID=2

[Threnody]

Yeah, I got nailed with that new "regulation" myself, but my rate STILL beats the heck out of the 8.5 I was originally going in at!

(Ahem, I FINALLY closed today......a year after I moved in.)