Financing - "We own the bank"

[Trinity]

Does this just apply to modulars or manufactured homes as well? In states ofther then GA? We were under the impression if a manufactured home was put on a permanent foundation that Fannie Mae considered it a stick built home at that point. Also, I would think that it would be very difficult in some areas to get accurate appraisals because of lack of comps. We are in CA. if it matters.
Thanks

[rmurray]

The Fannie Mae rules are national...Of course the GA Appraisal Board is for GA only....but...I would not be surprised that other states will follow suit..

Fannie Mae has never allowed more than 1 stick built comp for a manufactured home...so the restatement and clarification of the rule will make little difference..It does make it clear that stick comps can ONLY be used when there are not enough manufactured home comps..They have been used by some lenders as a regular matter of course...even if there were other comps available...Fannie Mae does treat manufactured homes the same as stick built as far as its loan programs are concerned..You can get any loan program they offer through your lender at the same rate..

The big change is with modulars...They have had stick comps until now...It will be interesting how this affects modular homes in areas where there are few..

Also..this same rule statement had a section about reporting appraisors that violate the rules to the state licensing boards for disiplenary action...This is new and might affect the amount of appraisals as well....Time will tell..

Unfortunately sales in which the seller of the home and the seller of the land are different...do not count as comps..In our area most sales are this way..If the seller of the home and the land are the same...they do count..such as in a subdivision that is developed by a dealer...This might be the case where you are looking..

All these investors are worried about is selling the home if something goes wrong..They want to know that if something goes wrong with your loan...how much can they reasonably expect to get if they have to sell in your market..

[Rosemary]

I hate to appear dumb, but I don't understand the implications of this discussion. Can you tell me in "layman's" terms what you're talking about? If I buy a manufactured home and put it on my own land (in Georgia) on a permanent foundation, how does this new law affect me now - or down the road when I want to sell my house?

Thanks for your help

[rmurray]

Remember manufactured and modular homes are different creatures...Manufacutred homes are built to the HUD code and modulars are built to a state code...

In GA...The new appraisal rules require an appraisor to determine value by comparing to other homes of like kind...If you have or are buying manufactured homes the appraisor must determine to value by comparing to other manufactured homes...In most parts of GA there are planty of manufactured homes in the market and the appraisal will be fine...example the used 20 year old model you mentioned in another post..You should be fine...

Modular might be a different story..There are not very many of them in the market..therefore appraisals with like kind might be impossible..If that is the case a mortgage would be non-existant or very expensive..

After you get yours..location is the most important thing..try to find and area with strong future growth potential..Remember 15 to 20 years ago...the whole county you are in was considered the "boondocks"...now it is one of the fastest growing in GA...Try to be sure your home is in the new growth areas..

[Threnody]

In SC at least, if it's on a perm foundation, it is no longer considered a manufactured but site built.

[rmurray]

I am sorry...but for appraisal purposes your statement is not correct...What you mention IS true for taxation purposes...South Carolina does allow the home to be taxed as real estate as opposed to personal property...This is required by most mortgage lenders and probably is true in all states..

By the way...permanent foundation in SC is poured concrete footers below the 4 inch frostline..The type of underpinning is not important..Hitch and running gear must be removed..

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