Financing Modular with Steel Beams

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Financing Modular with Steel Beams

Post by Keith » Sun Dec 18, 2005 7:29 am

Greeting from North Carolina-I need everybodies help. We are about ready to make an offer on an existing unique lake front property listed at $ 369,000. This includes the land (probably valued at $ 200,000 by itself), a two story garage/apartment (probably valued at $ 75,000) and a modular built in 2001. My mortgage guy had mentioned that Modulars with steel beams are extremely hard to get loans on. I went to look for the last time at the actual house on friday and it had horizontal and vertical beams that were steel (although they looked a heck of a lot more sturdy than a normal foundation).

I do have a "validation stamp" from the state of NC listing this home as a Modular.

Am I going to have a problem getting a 90% loan on this package ??

Thanks for your help with this.


Re: Financing Modular with Steel Beams

Post by Diane » Sun Dec 18, 2005 7:35 am

Find yourself another lender. DCA homes fall under the exact same classification as a "site-built" home. You have at your disposal all the loans available to you as does any site built, whoever told you that needs to take a refresher course in lending.


Re: Financing Modular with Steel Beams

Post by rmurray » Sun Dec 18, 2005 9:15 am

Sorry Diane...but is is true that most mainline lenders treat ON FRAME modular as a manufactured home..In some states the state laws require appraisers to appraise these hybrids as manufactured homes as well..NC no longer allows on frame modular to be placed in the state...but SC still does allow them...This fellows mortgage adviser was dead on with his advice...This kind of home might be hard to find comps for...This buyer should up front the appraisal..then proceed with the offer..90% mortgages are plenty available for these and all manufactured homes for qualified buyers..Rates on this home generally will be 1/2% higher than traditional mortgage rates..


Re: Financing Modular with Steel Beams

Post by Diane » Sun Dec 18, 2005 7:03 pm

Thanks for setting me straight Murray, I was unware of just a vast difference between the States and their regs. In Florida, Miss, La, Al and Penn, they treat them as site built, thank you for correct me and my lack of knowledge of NC.

Lee Brown

Re: Financing Modular with Steel Beams

Post by Lee Brown » Wed Jan 18, 2006 7:44 am

What is the current regulations on setting modular homes on steet beams in Va.
I have a friend that did just this a couple of years ago with no problems. Has this
changed in Va and does the financing bias exist in Va as well?


Re: Financing Modular with Steel Beams

Post by rmurray » Wed Jan 18, 2006 5:43 pm

Not sure about modular regs in your state...but finance of manufactured (HUD code) homes is a little harder to get...Most lenders do treat modular home on frame the same as manufactured homes...


Modular vs Manufactured?

Post by kmckay » Wed Jan 18, 2006 8:26 pm

Help! I'm retired and just moved to North Carolina from Virginia. I bought four acres on the side of a mountain with an old barn and a "modular" home on a "permanent foundation". I'm converting the barn for my horses, but the "modular" has turned out to be an "on-frame modular". Somehow it has county stamps certifying it to be a modular, but in the electrical circuit box, it also has plates referring to it as "this mobile home..." Talking to neighbors who watched the two sections come in on lowboys, I've learned that the "permanent foundation" is just a camouflage for the frame. I tried to reach the company that built it in 1999, but they are out of business. I did learn that they made "manufactured" homes, i.e. trailers.

Shock has compounded on shock as I have learned what "on-frame" means. The seller trashed it after the walk-through. As I have worked to replace door hardware, doors, cabinets, fixtures, windows, etc., I've had to return all the stuff I bought from Home Depot and Lowes' because it won't work here, and go to a mobile home parts supply store at two to four times the price.

My lawyer and buyer's agent are at a loss as to what to do now. Everything we've learned from web research is confusing. I don't know what my options might be. A dozen contractors who stand to make money from me have advised me not to sink more money into upgrades on the place. I wanted a house I could turn into a beautiful, unique home that would just go up and up in value while being a joy to live in for whatever years remain to me. Now I hear this place may actually be depreciating in value regardless of what I do! I'm heartsick and don't know what to do.

Advice and/or insight welcome. Thanks--


Re: Modular vs Manufactured?

Post by rmurray » Thu Jan 19, 2006 9:18 pm

Boy you have gotten some really bad information...Your buyers agent should refund your fee...because he did not give you any useful advice..especially if he is telling you this home will depreciate...Appreciation/depreciation is all location related in real estate...Not where the home was built..Sounds like you have a great desirable location....With the care you seem to be willing to invest..this home will do very well on resale...There are many thousands of manufactured homes in NC and with care in a good location they will all appreciate over time...

A real estate pro should take much more care in the description of the home...You must not have had a home inspection..A county does NOT certify if a home is modular or manufactured....All modulars would have a certification label inside near the electric box signed by a state agency...All manufactured homes will have a HUD label affixed to the outside of the home..and a date plate inside..I doubt yours calls it a "mobile home"...Manufactured home would be the right term...

Find new contractors who know more about manufactured home...Their advice is silly...


Re: Modular vs Manufactured?

Post by kmckay » Sat Jan 28, 2006 2:53 pm

I appreciate your response--you give me a measure of comfort.

Of course, I had a home inspection prior to buying. The inspector, though, didn't know there might be an issue concerning the frame and "foundation".

It's not my buyer's agent who is telling me the bad news about this house--she was as clueless as I on this purchase. You're right, of course, that it was the state of NC that validated this as a modular. But there are other plates and stickers referring to it as "Manufactured." I don't understand how they can do that.

It's definitely not a real house made of wood. Everything in it seems to be plastic or aluminum. I hired an electrician to do some repairs and improvements right after I moved in. I bought rheostats at Home Depot, but when he opened up the switch boxes, he said he couldn't install them--I'd have to go back to the mobile home supplier for parts. Ditto changing all the door knobs and deadbolts. I've also learned that I can't drywall or tile over the plastic sheetrock--I can only put up paintable wallpaper to hide the seams that plastic strips now cover.

Nobody seems to agree on what is a "permanent foundation", the nature of an "on-frame modular" vs a doublewide, etc. From my research, it seems to me that a "manufactured" home is nothing more than a trailer without wheels.

What I need to know is whether we've been deceived, whether it is worth investing in more improvements such as window replacement, whether I'd be wasting more money by putting an addition on this, whether I'm throwing away money to upgrade the kitchen and bathrooms (which currently have only the cheapest of fixtures and cabinets).

I haven't talked to my mortgager yet about this--I wanted to get the facts first. My bank excludes mobile homes, and I don't know what the ramifications are if this really is one. If it's not really a modular, it's worth nowhere near what I paid for it.

Thanks for your time and help.


Re: Modular vs Manufactured?

Post by rmurray » Sun Jan 29, 2006 9:40 am

Manufactured Homes are homes built in a factory to the HUD code..All manufactured homes will have a HUD label Like this one..Affixed to the long side of each section.. ...see question about HUD labels..

If it has this label you have a manufactured home....

If your bank did a traditional mortgage...they did an appraisal to justify the value...The appraiser would have noted if it was a modular or manufactured home...

A permanent set on a manufactured or on frame modular home is nothing more than what the original set up manual required and inspected by a local inspector..Who is supposed to be sure the home is set to the manuals requirements..

Sounds like you have a modular because of the state label...It does sound like something that some folks are calling HUDular..."a mix of a HUD home and modular"..This term is NOT a legal term just one used by some in a derogatory manor...

You do would like you have a basic modular home...Of course you saw this house before you bought knew it had vinyl wall paper and strips to cover the seams...You saw the cabinets and fixtures and bought them anyway....The value is nothing more or nothing less than you paid since you were a willing , informed buyer buying from a willing seller...This is the actual definition of value...This is the magic figure all appraisers are trying to determine...

Repairs and improvements are for your benefit...It will make you happier with your home....That in itself is worth the effort..the bonus is they will make the home easier to sell in the future.. if that is the goal..Which it seems to be..

I still think you need contractors with better knowledge...YOU can put dimmer switches on your home...

You CAN paint over the walls and get rid of the strips...The book store here has a great video instruction tape that shows the exact procedure...

You can get it the bookstore..Copy and paste the URL ... de=&sesid=

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