Manufactured Vs. Modular Homes

[Charlotte Dixon]

O.K. Ben and all of you...I have my 2 cents to put in.
Ben..that thick wall is called a "marriage wall"......That, I do know! :roll:

On another note, I had a broker call me after we did an appraisal on a 1972 manufactured home. He asked us to change the age on the home and said.....If you don't, the poor guy won't get his financing...and...no one will know but you and me. That was the end of that crooked lender..I told them to never, and I MEAN NEVER call us again! :evil:

 

[Rich Heyn]

Charlotte:

If it was built in 1972, it was not a manufactured home, at least not in the specific sense of the term.

Built on a permanent chassis prior to June 15, 1976 = mobile home.

Built to the HUD code after June 15, 1976 = manufactured home.

Built as modules in a factory to a local code (BOCA/national building code, ICBO/uniform building code, SBCCI/standard building code) = modular home.

Rich Heyn

 

[jeremyd4]

modular vs. manufactured. Many MH dealers are are using modular in their ads. This simply is a marketing gimic. If the components are assembled or created off site ( including log cabin kits; etc.) they are all manufactured homes. The big difference is; a modular home is lifted and placed on a foundation with the exterior walls supported by the foundation, as in stick built; rather than by a steel undercarage, which provides support from the center and only requires skirting for cosmetics. There are dealers in this area (SE N.C.) that are calling some double wides as on-frame modulars. Their quality may be much better ( ie; all drywall interior and or a 12/8 pitched roof, but the exterior walls are not supported by the foundation. Obviously a log cabin home is assembled on site on a real foundation, but if you want to make friends with the owners/builders call it a manufactured
home and see what happens, but that's what it is.

 

[Rich Heyn]

jeremyd4:

You wrote that if the components are assembled or created off-site (including log cabin kits: etc.) they are all manufactured homes.

Where did you get this info?

Only in the generic sense of the term "manufactured home" are all factory-built homes manufactured homes. In the specific sense, only HUD code homes are manufactured homes.

You are pretty much on the mark in your understanding that modulars are designed for placement over perimeter suport foundations (basements and crawl spaces). However, your classification of all types of automated housing is simply not correct. I don't mean to be contentious, but incorrect use of the term "manufactured home" in an appraisal report can create problems for lenders, underwriters, borrowers and appraisers.

FNMA, FHLMC and FHA are all quite specific in their use and definition of the term "manufactured home." They all state in their guidelines that a manufactured home is a home built to the HUD code. Essentially, they have one set of underwriting guidelines and requirements for HUD code homes; other types of factory-built homes (modulars, panelized, etc.) are treated according to the same guidelines as site-built homes.

When appraisers call a modular home, panelized home, kit home, log home or whatever a "manufactured home" on an appraisal report it can cause the client to treat the property according to the incorrect set of guidelines. As you can imagine, this creates problems for all parties concerned.

Rich Heyn

 

[jeremyd4]

"FNMA requires appraisers using it's forms to identify both modular & HUD code homes as manufactured housing"-Michael Ehmann, MAI- McKissock Data Systems, is where i got my info, but more importantly,
it is how the market perceives the subject, being the deciding factor.
Any way I hope I was able to help the the man with his question as to what to look for and how to tell them apart, rather than with definitions.

 

[Farm Gal]

Jeremy:

Check the source, the definitions are quite specific.

Not all providers of education are created equal or accurate :evil:

Time frame may matter also: Fannies rules are a moving target at times, stay current!

 

[Rich Heyn]

Jeremy:

Lee Ann is right. Check the definitions.

With all due respect to the instructor; if (and in all fairness to the instructor, I want to stress the IF) the instructor said that FNMA requires appraisers to identify both modulars and HUD code homes as manufactured housing then I believe the instructor is mistaken.

Market perception is an important issue, but if your appraisal is going to be used in a secondary market transaction involving FNMA or FHLMC, or for an FHA loan, wouldn't you agree that their definitions are the controlling factor?

I agree that it is important to be able to "tell them apart," but I believe that correct identification BEGINS with correct definitions.

Rich Heyn