Dutch housing - Foundation Choices

[Bill]

My wife and I are in the market for a double wide here in WV. We like the looks of one we saw over the weekend. It seems very well made and has really impressive cabinetry. However, it is made by Dutch housing which is a company I have never heard of before. Does anyone have any information about this company or has anyone bought one of their homes? Their website says they are kind of like a division of Champion homes.
Also, the dealer seemed hesitant when I mentioned that we were interested in going FHA. Our mid scores are around 650 and we own our own land so we could probably get a different kind of loan but I am hoping that with the added requirements (permanent foundation, guttering, etc.) that the home would be set up better. He kept saying an FHA loan is much more expensive. However, he also quoted the 'typical' loan for a manufactured at 8%. I say even with the added cost of the preparation and the closing costs, the FHA loan is better. Anyone have any feedback on that?

Thanks for any help you can offer,

Bill

[Pendragon]

Guttering isn't required for an FHA loan, at least not in Florida.

You should be able to get standard interest on an FHA, probably around 6% or whatever the going rate is now for fixed, 30 yr terms.

[TanyaF]

I'm not an expert, but the way the house is setup etc, is your choice. You can have it put on a permanent foundation of your choosing, that meets HUD and FHA standards, whether or not you are funded by FHA. We went FHA because we had to. We could only afford a small downpayment. But we decided what kind of foundation we wanted for our home by researching it through one of the books sold on this site, and ordering it from the company. But the FHA loan is expensive. As soon as our house is completed and considered "real property" we will attempt to refinance through our credit union.

[David Oxhandler]

Your decision on a foundation system is an important one and should be dictated by local soil conditions rathere than loan requirements. If your looking for a top of the line system that will work well just about anyplace in the country take a look at the latest trends in California, where eathquakes are a factor and the foundation is more critical than anyplace in the country. The current trend is towards the products of FOUNDATION WORKS. Their advanced systems were designed and engineered for manufactued homes. These foundation systems add a high level of strutural stability and have proven most cost-effective for the manufactured home, buyer. Initial costs are considerably less than other types of foundations. Average installation requires less than 1 day vs. up to 2 weeks for slab or runner foundations. Result: Dramatic out-of-pocket savings. Meets industry standards for permanent foundation. Qualifies for FHA or VA loan vs. conventional loan. Result: Lower monthly Payments. Foundation Works systms are waterproof...rustproof...vermin proof...termite proof. Result: Less maintenance means countinuing savings. Foundation Works pads, stands, and precast concrete skirting can be easily moved and reinstalled at another location. Result: Lower relocation costs. Foundation Works meet or exceed industry standards, and have been proven safer under adverse conditions. Many cities in Oregon and Washington are being upgraded to Seismic Zone 3 & 4, and will be requiring earthquake resistant bracing in the near future. Thoroughly safety tested and certified by the State of California for use in Seismic Zone 4, 'the Foundation Works Systems exceed strength requirements by a factor of 2! Traditional foundations offer little protection from wind damage because the manufactured home literally sits on top of the foundation. Foundation Works Systems solidly anchor your home and footing...and have been safety certified in 80 mph winds. Foundation Works are engineered and designed exclusively for manufactured housing. Tests show the Foundation Works are 4 to 6 times stronger than the average foundation for manufactured housing, thus providing more safety and stability. Foundation Works offer you the best foundation technology available for your manufactured home...plus added safety and stability...at a lower cost. Get a free Quote by submitting the form you will find at the FOUNDATION WORKS web site

[Bill]

Thanks for all the input, everyone! Two questions--
1. Does anyone have any experience with Dutch housing manufactured homes?
2. Tanya, why is an FHA loan more expensive? I thought the idea behind the FHA was not only lower down payment but also affordable payments. Can you please tell me some of your personal experiences with FHA?

[Eugene]

Yes, i have personel expereince with Dutch.
They are not bad. They are not great either, But if you are looking for a decent home without spending a lot of money, they are fine.
The biggest problem with Dutch, is that their dealer base is bad, they sell to anyone that wants their houses.
really good manufacturers make sure they only sell to good dealers.
You could do a lot worse then dutch.

[TanyaF]

I suppose I shouldn't make statements like that without really thinking about it. We actually didn't get to comparison shop loans much, we knew we'd have to go FHA, and we went with the first lender that approved us, since we were under a deadline. The total cost for our home, land, options and construction was about 172,000, but the actual loan ended up costing us 178,000. Plus we have to pay almost $70 dollars/month mortgage insurance. We got an interest rate of 6.75%. Would this be considered an expensive loan? My response was kind of "knee-jerk" because I'd always heard that FHA's are expensive. My credit union doesn't deal in construction loans so they couldn't help us at the time, but they said once the home is finished and considered "real property" that they could help us with a refinance. I can only assume that they will get us a better interest rate. They certainly did with my car loan!

[Bill]

Hey, thanks Eugene and Tanya for your input! Eugene, the home we are considering is around $65,000 for 1600 feet of living space. We've looked at more expensive and less expensive and have noted differences in construction. This one looks pretty well-made but I'd have to agree with you on the dealer. He seems unknowledgeable about a lot of things which is why I came here. The website mentions that the company is relatively new and that could be good or bad. Glad to hear from someone who has firsthand experience.
Tanya, thanks for your post. Our loan will be a lot less than yours so our MIP will be less too but I still think the payment will come out better at the 6.5 than the 7.5 if we go conventional. Our scores are 'good enough' to go with something other than FHA but if the price is better, I think we'd be better off . If I could ask you one more question--did your loan take a long time and were you deluged with requests for documentation? Again, I have heard conflicting stories. Some say it takes a lot longer to be approved and the paperwork was tremendous and others disagree.

[TanyaF]

We did have to submit a fair amount of documentation...if I remember correctly...tax returns for the last year or so, bank statements for the last month or two, paystubs, a pretty thorough application listing our debts and assets, employment history, etc., but not ridiculously extensive. Most of that they can get anyway when they pull your credit history. With this lender, we didn't have to wait too too long for an approval. However, the first place we applied, we waited and waited and waited and never heard from them, forcing us to go to the second lender. The first lender was a major, national bank, the second was a small, private firm that our MH dealer referred us to.
I think a lot of the application process depends on the state you're in. This lender was in AZ. My brother on the other hand, who lives in CO, had a substantial downpayment and an excellent financial history and said he had to submit a small book when he bought his home.
At any rate, I don't suppose there's any reason you couldn't apply for both types of loans and see what you actually get.

[rmurray]

FHA is the most common finance program in the industry now...There are some special FHA requirements that do cost more then the most basic sale..Engineering fees and inspection fees water tests can add a couple thousand to the costs....The actual set up and steps might add to the cost otherwise needed on the conventionally financed home...Closing costs and loan fees are about the same..

I would be very cautious of a dealer who is afraid of the FHA...They do inspect his work on the set up....some dealers do not want the added attention...For your own resale value you should insist on a FHA acceptable foundatrion..you may well need this at resale time..retro fitting the foundation is usually cost prohibitive...I would be very afraid of a dealer that is " seems unknowledgeable about a lot of things" If this dealer avoids the FHA he/she will not be there long..something for you to Be concerned with.. Ask for references and call previous customers......Do the salesperson a favor and suggest he visit the book store here..Better yet you might want to invest in Eaton or Grissom's book..cheap investment..to head off years of agony.....The other reply here suggests you apply for both loans.. and compare the costs..Good idea..common in the mortgage business...