Manufactured or Modular?

[Susan W.]

I am a Loan Officer and am working on doing a loan for a manufactured home (at least that's what I was told. I received the loan which was already in escrow and I specialize in manufactured home loans (and also live in one), but when the file was given to me to do the loan, I was told it was a manufactured and it was supposed to be a modular home (which I have not dealt with modular yet, but am finding out about them) and it had been turned down by one lender because they said it was a manufactured and not modular. I am really confused because I was told by someone else it was a modular home and not manufactured. Do you know how to tell the difference? I thought it was by the chassi (whether it has one or not) and if so, how can you tell if you don't inspect the property yourself? Please help me or refer me to someone who can. I am at a "stand still" right now on this. Thanks.

[Roy T. Bonney]

If the home was built to the HUD code, it is a manufactured home. If it was built to a code other than HUD, it is a modular home. All HUD code homes have a metal tag on the rear giving the HUD seal number. They also have a data plate, an 8 x 11 sheet of paper glued to the wall inside the home, certifying that it was built to the HUD code. Modulars have a similar 8 x 11 sheet of paper glued to the wall as well, but will certify to what code it was built, and give you the name of the third party engineering firm certifying the inspection. The frame or absence of a frame is not a method of clarification, but only a characteristic in certain markets. They can be built either "on frame" or "off frame".

[rmurray]

Roy is exactly correct...There is NO Way to tell if the home is a modular without a field inspection...That is the function of an appraiser in your business..Obviously the appraiser in this case saw the HUD label..Also many real estate "professionals" insist on using the wrong terms..Often owners of NICE manufactured homes often call their homes modular..not knowing there is a difference in some cases...Unfortunately as you have found there are lenders who will finance a modular but not a manufactured..The same might also come into play with insurance companies..