Main House Is Stick, 'guest' House Is Manufactured

[Joe M]

First post. My wife and I signed a purchase agreement to buy a property in Idaho that has a large log cabin as the main house and a manufactured house on a foundation and designated as real property as a guest house. It sits on 5 acres. Even though the property would assess at our agreed to purchase price with the main house alone, lenders will not offer us a fixed rate mortgage because of the mfg. home. We've been told that we can redeclare as personal property but it needs to be removed from the foundation. Why should it even matter? Am I missing something here?

 

[Terrel L. Shields]

Lenders are idiots. What kind of loan? fannie mae? FHA? Try something beside secondary market. Half of loans today are funded by non-banks-Quicken, etc. Try farm credit (FCA), or FmHA. Otherwise fund with shorter term adjustable rate mortgage.

 

[CANative]

FHA and the GSE's will accept a second unit manufactured home as long as it meets certain requirements. Most lenders just don't accept factory built housing. You have a double difficult property because the primary residence is a log home (very difficult to get financing) and a second unit (even tougher) which is a manufactured home (OMG difficult.)

You may have to get a hard money loan.

Is the manufactured home built to the HUD code (after June 1976, has a steel chassis, and has labels and plates (the plates outside - one on each section and usually red are actually the labels and the label on the inside is actually the HUD data plate)? If the dwelling was not built to the HUD code you're probably out of luck - except for a private lender or possibly the VA if you're veteran.

 

[Joe M]

Lenders are idiots. What kind of loan? fannie mae? FHA? Try something beside secondary market. Half of loans today are funded by non-banks-Quicken, etc. Try farm credit (FCA), or FmHA. Otherwise fund with shorter term adjustable rate mortgage.

Thanks for the quick response. I'll pursue your FCA and FmHA suggestions. Bank of Jackson Hole is willing to finance with an ARM. I will keep the term to 15 years and we are putting 30% down.

 

[Joe M]

FHA and the GSE's will accept a second unit manufactured home as long as it meets certain requirements. Most lenders just don't accept factory built housing. You have a double difficult property because the primary residence is a log home (very difficult to get financing) and a second unit (even tougher) which is a manufactured home (OMG difficult.)

You may have to get a hard money loan.

Is the manufactured home built to the HUD code (after June 1976, has a steel chassis, and has labels and plates (the plates outside - one on each section and usually red are actually the labels and the label on the inside is actually the HUD data plate)? If the dwelling was not built to the HUD code you're probably out of luck - except for a private lender or possibly the VA if you're veteran.

I didn't realize log cabins were tough to finance. We've been approved for an ARM, I just can't believe a manufactured taints the well as much as it does.

 

[JTip]

The more cash down, the more options.

good luck

 

[Sid Holderly]

Go to a local bank or rural area lender that understands the area. That may get you much further.

 

[Mark K]

Lenders are idiots. What kind of loan? fannie mae? FHA? Try something beside secondary market. Half of loans today are funded by non-banks-Quicken, etc. Try farm credit (FCA), or FmHA. Otherwise fund with shorter term adjustable rate mortgage.

Agree but to clarify..."Secondary market lenders are idiots".

Do as Terrel says, go with a local lender, someone that will keep the loan in-house. Loans are usually variable rate and higher down payment but they have a lot of flexibility.

 

[Mr Rex]

To lenders Log cabins have warts and Manufactured homes have herpes if not worse social diseases.

 

[NORTON]

Guest unit = ADU, which complicates matters for lenders.