Reverse Mortgages

[Joseph L. Carlson]

I apologize in advance if you've already answered this question: Are owners of manufactured homes located in parks where the land is owned by the park, not the home owner, eligible for Reverse Mortgages? I have been unable to get a definitive answer about this, but I have gotten a lot of 'Sorry, we can't help you if you don't own the land' comments. Your assistance would be very much appreciated.

[Chrissy Jackson]

I don't know of any lender offering reverse mortgages on manufactured homes at this time. With the proper reserves, this could be a way of securing more business. Any lenders out there interested???

[David A Weaver]

As a manufactured housing finance specialist for the last 10 years and aware of the guidelines for Manufactured/HUD code homes both in park and on land, I am sorry to say the Reverse Mortgages are not in the cards for owners of homes in a rental or leased land situation. Both Fannie Mae and FHA, offerers of Reverse Mortgages, require that the land and home be classified as Real Estate to be eligable for financing. And given the current lender guidelines with regard to HUD code built homes I don't see any change in the forseeable future.

HUD code homes in a park are considered personal property and not real estate and are eligible for Chattle Mortgages under a retail installment contract.

As of the first of the year Fannie Mae and Freddie Mac and many other investors enacted much strictor guidelines for this classification of housing. My suggestion would be for every homeowner to contact their Congressman and Representative and express their concern for the lack of financing options available to owners of what represents some 25% of the housing market in the United States.

Respectfully,

Dave Weaver

[Michele]

I need a Lender who will loan in NE.. 80% LTV, c/o, 614 fico, LEASEHOLD estate. PLEASE help!

[jim milano]

Chrissy,

We have clients that make reverse mortgages secured by manufactured homes. The most common reverse mortgage is the FHA-insured home equity conversion mortgage (or HECM). HECM must be secured by real property; therefore, the manufactured home should be classified as real property. There are other requirements.

Let me know if you would like a contact or further information

Jim Milano
Weiner Brodsky
202-628-2000
[email protected]

[jim milano]

Chrissy,

We have clients that make reverse mortgages secured by manufactured homes. The most common reverse mortgage is the FHA-insured home equity conversion mortgage (or HECM). HECMs must be secured by real property; therefore, the manufactured home should be classified as real property. There are other requirements.

Let me know if you would like a contact or further information

Jim Milano
Weiner Brodsky
202-628-2000
[email protected]

[Scotty]

What is the usual procedure for my client who wants to buy land and get a modular? Does he get a mort. for the land, then a seperate mort. for the house....

[rmurray]

Separate mortgages are not available for modular homes (modular homes have no title)...modular homes become part of the real property they are attached to and would be mortgaged like any other custom built home..

This is fairly fundimental knowledge and a person representing himself as an expert to a "client" should already know this info....Get yourself up to speed before you try to give advice..

[Linda Michell]

I had contacted a mortgage broker earlier this year who said that a recent change was made for approved reverse mortgages on manufactured homes on leased land in New York. However, when a copy of the lease was submitted to the lending bank it was not approved due to some wording in the lease. Now I am told from other lenders that manufactured homes on leased land are not eligible for reverse mortgages. I am totally confused. Can you clarify?

[rmurray]

Your original broker did not know his business well...He was marginally right....One of the major wholesale lenders..Fannie Mae does allow all sorts of finance on long term leased property...The wording of the lease is very specific...most often the term would have to be for 30 years or more.....The more recent brokers have been more correct...they asked a little about your lease and knew it would not be accepted...no such loan is available for a home in a rental park.....