Warranty on Foundation

[Jamie Oliver]

Hello! Me and my husband are in the process of getting a new Manufactured home. My lender told me, in order to make the process easier and avoid unnecessary inspections, that we need to get a 10 year warranty on the foundation. The warranty plan that the company has is a 1/10 warranty and does not cover the foundation. The home dealer stated to me that he has never heard of that, and that he could not get that because that would be up to the concrete guy.

Do you know anything about a warranty that we can get on the foundation? Any help would be much appreciated.

Thank you,
Jamie Oliver
Center, CO 81125

[rmurray]

You might need to find a better informed sales person....Most folks with FHA finance (many of the customers today)..have to have a 10 year foundation warranty...There are companies out there that offer this warranty..specifically for the FHA process...

In most cases the dealer must be approved by the warranty company...There is an extended warranty company reprsented here...but I see no mention of the foundation..


This is one company I am familier with that does this type of warranty..

http://www.2-10.com/manufacturedhome/index.html

A direct link to the foundation coverage info,,

http://www.2-10.com/manufacturedhome/permanent.html

[Jamie Oliver]

Thank you for the info. That is very helpful. Do you know, with this 2-10 company, if me and my husband can purchase this on our own, or does it have to be something through the dealer.

The home that we are buying is a Karsten home. Apparently, according to the dealer, Karsten Homes does not do a 2-10 warranty at all. They will only do the 1-10 warranty.

Thank you,
Jamie Oliver
Center, CO 81125

[rmurray]

Do not get confused with the terms...A factory warranty is required by the FHA..used homes require a seller warranty..or..purchased warranty policy..

No manufacture covers the foundation...The coverage of most manufactured home companies that offer more than 1 years..is very limited and has a deductible after the first year..

I do not know if 2-10 company will sells directly..You can go to there web site and find a contact number to call...I do know they will check out the dealer before selling through them...Have your dealer call the sales rep..

2-10 will require that the FHA foundation be designed by an engineer and inspected by him/her...The warranty will become effective after they receive the inspection from the engineer..Your dealer should be fully aware of all FHA requirements..since about 1/2 of all homes are FHA financed..

[Scott]

Sir, I am a Karsten dealer and what rmurray is saying is correct. The 1/10 factory warranty is a warranty on the home itself, not the foundation. However, There is no deductible on the factory warranty even after the first year. Basically the bottom line is that any FHA financing will require a 10 year warranty on the foundation..period. Generally, this warranty coverage is something that your dealer/lender will acquire and will more often than not be rolled as part of your closing costs.

[Nick]

Jamie, dont worry about your warranty. According to the HUD code, your home needs to perform...period. There is not time limit on this either. Many manufacturers tend to stand behind warranties and warranty companies sell you something you don't need. Sure there are warranties on certain fixtures, like faucets, lights, carpet, trimwork and things of a cosmetic nature. But to the construction of the home, the HUD code applies. the HUD Code is a performance code....period.

Many "sales people" don't know about the code or if they do, they don't tell you..........

[Nick]

Also, if your dealer contracts the foundation, he's responsible. If you build the basement of hire your own contractor build the basement and the retailer puts the home on it anyway, knowing there is something wrong, the retailer assumes responsiblity. Look under the Black Law Dictionary.

I did and won!

[rmurray]

Black law might be useful...but will do you no good if you cannot get finance..the question here was about the FHA required 10 year foundation warranty..This is required by the finance..and not an optional choice if these folks want to finance with this program..

[David Kinney]

Have the dealer contact Manufactured Housing Warranty Corp. at 1-800-247-1812.
The dealer purchases the warrranty for you. At a very low cost, this will satisfy your lender and give you the satisfaction of 19 years of coverage.