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MANUFACTURED HOMES Training

MANUFACTURED HOMES Training. Offered by… FIRST MORTGAGE CORPORATION. July 17, 2014.

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MANUFACTURED HOMES Training

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  1. MANUFACTURED HOMESTraining Offered by… FIRST MORTGAGE CORPORATION July 17, 2014 Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered trademark of Freddie Mac. This presentation is a summary and is not complete. This information is for mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of the date shown below and is subject to change without notice. 07/17/2014

  2. AGENDA • Introduction • Manufactured Homes • Definition & Overview • Eligibility Guidelines • Appraisal Guidelines • Titling Requirements • Basic Closing Requirements • FHA vs. Fannie Mae comparison • Resources and FMC Support Understanding Manufactured Homes

  3. FMC INTRODUCTION Understanding Manufactured Homes • First Mortgage Corporation is an independent residential Mortgage Banking firm with branch offices located throughout the west. • Founded in 1975, FMC is a direct-lending mortgage banker approved as a lender and/or loan servicer by the Federal Housing Administration (FHA); the Veterans Administration (VA); the Federal National Mortgage Association (Fannie Mae); the Government National Mortgage Association (Ginnie Mae); the National Homebuyers Fund (NHF);and many other major secondary market institutions. First Mortgage Corporation is currently rated the #3 FHA Lender in CA; Top 50 in the Nation! • Having funded in excess of $20 billion in residential real estate loans, FMC has assisted thousands of families with their mortgage needs.  FMC enables families to enjoy the American Dream of Homeownership…“it’s the only thing we do.” • FMC has a longstanding tradition of providing unparalleled customer service and a reputation built on adding value to the home loan process.  That’s why FMC should be considered…“YOUR FIRST LENDING RESOURCE”.

  4. MANUFACTURED HOMES What is a Manufactured Home? Factory Built Housing overview Basic Eligibility Guidelines General Requirements Understanding Manufactured Homes

  5. HISTORY OF MANUFACTURED HOMES Understanding Manufactured Homes Understanding Manufactured Homes

  6. HUD TAG andDATE PLACE Understanding Manufactured Homes Understanding Manufactured Homes

  7. CERTIFICATION LABEL & DATA PLATE Understanding Manufactured Homes Understanding Manufactured Homes

  8. DEFINING MANUFACTURED HOME • Defining a Manufactured Home? • There is considerable inconsistency in the use of the terms “manufactured housing” and “factory built housing”. • Per FHA: A Manufactured home is a structure that is transportable in one or more sections. In traveling mode, the home is 8 ft or more in width and 40 feet or more in length. • Per FNMA: Any dwelling unit built on a permanent chassis and attached to a permanent foundation system is a “manufactured home”. • In general, the term “manufactured home” refers only to homes that are built in compliance with the national code. Understanding Manufactured Homes Understanding Manufactured Homes

  9. MANUFACTURED HOME • Manufactured Home Understanding Manufactured Homes Understanding Manufactured Homes

  10. FACTORY BUILT HOUSING • Factory-Built Housing Understanding Manufactured Homes Understanding Manufactured Homes

  11. STATE RESTRICTIONS • State Restrictions • Manufactured Homes are only allowed in a limited number of states. Certain states treat manufactured homes as personal property instead of real property that cannot be titled or foreclosed upon in the same manner. Eg., HI, Alaska, etc. Understanding Manufactured Homes Understanding Manufactured Homes

  12. MANUFACTURED HOMEMARKET • Manufactured Home Market • Manufactured homes are “LOW COST” compared to site-built and other factory-built homes • Sold through dealerships • Titled as personal property • Often financed with chattel loans • Often placed in land-lease “parks,” rather than on borrower-owned land Understanding Manufactured Homes Understanding Manufactured Homes

  13. FINANCING MANUFACTURED HOMESCHATTEL OR MORTGAGE? • Disadvantages of Chattel loans: • Higher interest rates than home mortgages • Fewer consumer protections – eg., HOEPA and RESPA don’t apply • First-time homebuyer subsidies may not be available • Homes are subject to repossession, rather than foreclosure • MSL may not list manufactured homes listed for sale • Fewer financing options for resale for MH on leased land Understanding Manufactured Homes Understanding Manufactured Homes

  14. STATE’S APPROACHESTO TITLING Understanding Manufactured Homes Understanding Manufactured Homes

  15. STATES APPROACH TOTITLING • Certificate of Title “Surrender” states: • Certificate of title is issued upon purchase of manufactured home, but is surrendered after home is affixed to foundation and becomes real property • Certificate of Title “NO Surrender” states: • Certificate of title is issued and remains outstanding (it is not surrendered or cancelled) • Non-certificate of title states: • No certificate of title is required to be issued • Titling requirements by State: https://www.fanniemae.com/singlefamily/titling-manufactured-housing Understanding Manufactured Homes Understanding Manufactured Homes

  16. MANUFACTURED HOME SPECIFICATIONFHA Understanding Manufactured Homes Understanding Manufactured Homes

  17. MANUFACTURED HOME SPECIFICATIONFNMA Understanding Manufactured Homes Understanding Manufactured Homes

  18. MORE MANUFACTURED HOMEREQUIREMENT Manufactured home must be… • Classified as real property • Situated on land that • Is owned in “fee simple” by borrower • Has adequate vehicular access (on publicly or privately maintained street) • Attached to a permanent foundation system • Connected to utilities and septic tank or sewage system Understanding Manufactured Homes Understanding Manufactured Homes

  19. MANUFACTURED HOMES INCONDO OR PUD PROJECTS • FHA / Fannie Mae project acceptance/approval is required for MH Condo and PUD projects • FHA – Project must already be approved with FHA to be eligible for financing • Fannie Mae – Project acceptance is required for MFH Condo and PUD projects • Exception: Project approval is not required for PUD projects consisting of double-wide MH’s • Use project code “Type T” and SFC 235 at delivery Understanding Manufactured Homes Understanding Manufactured Homes

  20. APPROVED PROJECTSCONDO / PUD PROJECTS • FHA https://entp.hud.gov/idapp/html/condlook.cfm • Fannie Mae: https://www.fanniemae.com/singlefamily/project-eligibility Understanding Manufactured Homes Understanding Manufactured Homes

  21. ELIGIBILITY GUIDELINES Manufactured Home Eligibility Matrix LTV Calculations Sample Purchase / Refinance scenarios Manufactured Home Pricing/Fees Understanding Manufactured Homes Understanding Manufactured Homes

  22. Manufactured HomeMATRIX Understanding Manufactured Homes Understanding Manufactured Homes

  23. Understanding Manufactured Homes Understanding Manufactured Homes

  24. Understanding Manufactured Homes Understanding Manufactured Homes

  25. PURCHASE PRICE Understanding Manufactured Homes Understanding Manufactured Homes

  26. DETERMINING VALUE:Purchase of New Manufactured Home Understanding Manufactured Homes Understanding Manufactured Homes

  27. PURCHASE (NEW) LTV CALCULATION Understanding Manufactured Homes Understanding Manufactured Homes

  28. PURCHASE (NEW) SAMPLE Understanding Manufactured Homes Understanding Manufactured Homes

  29. DETERMINING VALUE:Purchase of Existing M/Home Understanding Manufactured Homes Understanding Manufactured Homes

  30. PURCHASE (Existing Home) LTV CALCULATION Understanding Manufactured Homes Understanding Manufactured Homes

  31. PURCHASE (Existing Home) SAMPLE Understanding Manufactured Homes Understanding Manufactured Homes

  32. LIMITED CASH-OUT REFINANCE Understanding Manufactured Homes Understanding Manufactured Homes

  33. LIMITED CASH-OUT REFINANCE Understanding Manufactured Homes Understanding Manufactured Homes

  34. CASH-OUT REFINANCE Understanding Manufactured Homes Understanding Manufactured Homes

  35. DETERMINING VALUE:Refinance of a MH Loan Understanding Manufactured Homes Understanding Manufactured Homes

  36. CASH-OUT REFINANCE SAMPLE What is the maximum loan amount for which they are eligible? • $70,000 ($125,000 [current AV of MH and Land] minus $55,000 [UPB of first and 2nd mortgage]) • $87,500 (70% x $125,000 [current AV of MH and land]) • $82,500 (70% x $125,000 [current AV of MH and land] minus $5,000 [UPB of second mortgage]) Understanding Manufactured Homes Understanding Manufactured Homes

  37. MANUFACTURED HOME PRICING Understanding Manufactured Homes Understanding Manufactured Homes

  38. REMINDERS Understanding Manufactured Homes Understanding Manufactured Homes

  39. APPRAISAL GUIDELINES Appraisal Guidelines Appraisal Forms Appraisal Report (Form 1004C) Understanding Manufactured Homes Understanding Manufactured Homes

  40. APPRAISER QUALIFICATION Understanding Manufactured Homes Understanding Manufactured Homes

  41. APPRAISAL REPORTS FORMANUFACTURED HOMES Understanding Manufactured Homes Understanding Manufactured Homes

  42. MH APPRAISAL REPORT(FORM 1004C) Understanding Manufactured Homes Understanding Manufactured Homes

  43. MH APPRAISAL REPORT(FORM 1004C) Understanding Manufactured Homes Understanding Manufactured Homes

  44. MH APPRAISAL REPORT(FORM 1004C) Understanding Manufactured Homes Understanding Manufactured Homes

  45. MH APPRAISAL REPORT(FORM 1004C) Understanding Manufactured Homes Understanding Manufactured Homes

  46. APPRAISAL GUIDELINES Understanding Manufactured Homes Understanding Manufactured Homes

  47. STRUCTURAL ENGINEER’SREPORT Understanding Manufactured Homes Understanding Manufactured Homes

  48. LEVEL OF COMPLETION PRIOR TO CLOSING Understanding Manufactured Homes Understanding Manufactured Homes

  49. PERMANENT FOUNDATION GUIDE Basic Information Understanding Manufactured Homes Understanding Manufactured Homes

  50. TITLING REQUIREMENTS Agency Titling Requirements States Approach to Titling Understanding Manufactured Homes Understanding Manufactured Homes

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