There are many reasons someone shopping for a new place might opt for a manufactured home. It can be the amount of land that often accompanies the mobile home, or it may come down to cost. Either way, manufactured homes meet a consumer need in our market. Buying an existing resale manufactured home is a complicated process. Before you begin looking a homes, here are a few points to keep in mind;
- When buying a manufactured home, ask your lender if their company will finance on them before entering into a purchase contract (many lenders in the Oklahoma City market do not)
- Anticipate a longer transaction period. A traditional home will typically close in 30-45 days. On a manufactured home, you should allow up to 60 unless otherwise directed by the lender.
- Most single wide manufactured homes will not qualify for a mortgage.
- Manufactured homes do not qualify for 100% USDA rural development loans today.
In order for a lender to complete a manufactured home purchase, their underwriters are going to have extra requirements specific to the property. Here’s a list of what you can expect;
- A Structural Engineer Report is required in addition to typical inspections associated with a home purchase (buyer cost). The report has to be from a licensed structural engineer and state that the structure is on a permanent foundation and has any and all proper tie downs needed.
- In the event the Structural Report states that there are requirements, then a final report from the structural engineer is required once changes have been made. There may be a fee to the buyer for a return visit.
- Proof the Manufactured Home was delivered to the subject property. This is requested from the Oklahoma Tax Commission and can take up to two weeks. This is often handled by the lender however, they may require cooperation of the seller.
- Oklahoma considers manufactured homes vehicles until they are attached to the land. The vehicle title must have been canceled and turned into real property (attached to the land). If the title was not canceled, the seller must take it to its respective county assessor’s office to get the proper forms and then take it to the Oklahoma Tax Commission to get it canceled. In the event that the seller is not current on the property taxes, the taxes must be paid in full before OTC will cancel the title.
- The HUD Tag (outside) and Data Plate (typically on the inside of a cabinet) must be on the property. The HUD tag certifies that is was manufactured by Department of Housing standards and the Data Plate includes the date and place it was manufactured along with serial number and HUD number. The seller can often email a photo of each to the lender. In the event the tag or plate have been removed, the seller will have to get replacements which will add to the transaction time.
If buying a manufactured home meets your current needs or longterm goals, I’m happy to help. However, this is an instance when you must make contact with a lender that works in the field prior to our touring properties. I have heard that Bank of Oklahoma and Centennial Home Mortgage both offer that service (today) however that is ever-changing.