removing the steel beams for easier financing

[lmprice]

We have a manufacured home and we want to remove the steel beams. A friend of ours did this to his home and was able to sell it right away because it was easier to finance....the bank removed the title and sold it as a stick built home. Have you heard of this before? We want to sell our home and cannot because buyers cannot finance so we want to do this too. What do we need to know about removing the steel beams and what do we need to replace them with?

[rmurray]

Removing the I-beams will change little when financing..This is a manufactured home, no matter what you do to it...The title can be retired and the home included in the deed in EVERY state with no modifications. most mortgage lenders will require "permanent foundations" which often means the removal of the transportation equipment, axles and hitches, permanent underpinning and footings under the piers and proper anchoring to the ground. The home is engineered to have the frame which is an important part of the design. I doubt the home would be safe after removal. Actually it sounds like your neighbor committed deception to sell his home. Both the lender and buyer could and might well come back to him in a legal manor many years in the future..His risk is HUGE, maybe even criminal. There are mortgage companies who will mortgage this property to qualified buyers. Mortgages take very good credit in these times.. You will have to make your property attractive to highly qualified buyers. You would be better off spending the tens of thousands it would take to remove the frame and spend it making the home a virtual show place..New paint, carpet, fixtures, cabinets, landscaping, roof and appliances. Your professional realtor should be able to give you some advice.

[lmprice]

We have just spent $30,000 on remodeling the kitchen and bath room...the house is only 10 years old but is now brand new throughout again! It is appraised at $120,000 but banks are only willing to finance 60% due to it being manufactured, that is why it is hard for the buyers to get financed....i know we have excellent credit and our own bank which we have been with for decades won't give us a mortgage on it! Thanks for your input on the beams....i figured replacing them with wood beams would be just as safe.

[David Oxhandler]

Removing the steel frame from under and manufactured home can destroy that homes structural integrity. Your home was built to the Federal HUD code... NOT to the local residential housing codes. There is nothing you can do to change that history.

Applying for a loan and misrepresenting a HUD code built manufactured home as anything but just that could be considered fraud and result and serious consequences. Tell your friend to stop bragging. Dont consider following his example.

The finance industry is in ruins at this moment. People with high credit scores cant get new mortgages. There is an unprecedented deflationary spiral in the price of housing nation-wide. People who thought they had great mortgages just a short time ago now find they owe more than the home is worth. Very few of us are happy with finance options that are out there now for everything from cars, to business inventory, and yes home loans of every shape size and color.

I am confident that more options will become available for MH financing as the credit crisis eases. You can register with The Manufactured Housing Loan Finder Service, They are a free mortgage information referral service that accepts requests regardless of credit history. You may request information for any type of manufactured home finance. Their goal is to provide you with information to make an informed decision.. You will discover which participating lenders across the country offer the best programs to meet your needs.

[rmurray]

Sounds like you have the place looking really good and ready to sell, but you are going to the wrong place for a mortgage small local banks are usually geared for short term finance for things such as cars, boats and some rv's. Usually with terms no more than 5 years. This type of lender usually asks for VERY large equity if asked to finance longer..Shop the loan finder here on this web site. The lenders specialize in manufactured homes. Many are huge national lenders or traditional mortgage companies who will do manufactured home with a traditional 30 year mortgage. If you have the right foundation there are FHA insured mortgages available for 30 years at very competitive interest rates with a required down of only 3%. For you to do a cash out refi, there will be a challenge. This type of mortgage requires large equity AND VERY GOOD credit. A quality buyer should have little trouble finding a quality mortgage..send them here to make a loan request. The service is free..

[lmprice]

wow! thanks for the great advice it is very helpful. I am thinking we should stay here another year then see what happens to the housing market or maybe even sell it on a land contrac in order to get our money out of it. Thanks again.

[sledman]

rmurray made some excellent points. I would just add that if the home is truly a manufactured home (built to the HUD Code) the frames are not allowed to be removed or the home will be considered out of compliance. The industry for years has been trying to change the code to permit the removal, but has been unsuccessful to date.