Traditional Construction vs Manufactured Home - GoFuckYourself.com

Barefootsies · 10-15-2008, 05:41 PM

I have seen the home shows on Tv. I have read the different things saying they are one in the same.

Your thoughts?

avalanche · 10-15-2008, 05:59 PM

Anyone who tells you they are the same thing is on crack! They are different in every form ranging from available loans, to insurance, to resale potential.

Been in real estate for over 10 years as a broker, banker, hard money lender and about 4-5 years ago manufactured homes, in regards to financing, got a lot harder, as in almost impossible to do as almost every lender either pulled them from their allowable property types or cut the max ltv down to 65-70%. Fannie, Freddie, and FHA still do them with a very low LTV.

When a customer tells you he has a manufactured home the deal is almost always dead or going to be a nightmare due to the higher credit restrictions, tighter LTV guidelines, etc.

I wouldn't push a manufactured home on my worst enemy... ok, that's a stretch, but it's bad!

There are types of manufactured homes that the sellers pitch as the same as an SFR, but you need to be concerned with what the bank, city and appraiser will call it, not the builder.

Barefootsies · 10-15-2008, 07:00 PM

Quote:

Originally Posted by avalanche

Anyone who tells you they are the same thing is on crack! They are different in every form ranging from available loans, to insurance, to resale potential.

Been in real estate for over 10 years as a broker, banker, hard money lender and about 4-5 years ago manufactured homes, in regards to financing, got a lot harder, as in almost impossible to do as almost every lender either pulled them from their allowable property types or cut the max ltv down to 65-70%. Fannie, Freddie, and FHA still do them with a very low LTV.

When a customer tells you he has a manufactured home the deal is almost always dead or going to be a nightmare due to the higher credit restrictions, tighter LTV guidelines, etc.

I wouldn't push a manufactured home on my worst enemy... ok, that's a stretch, but it's bad!

There are types of manufactured homes that the sellers pitch as the same as an SFR, but you need to be concerned with what the bank, city and appraiser will call it, not the builder.

Good stuff sire.

I was mainly referring to construction. But that would explain a glut in the market on these mfg. homes.

L-Pink · 10-15-2008, 07:03 PM

Manufactured homes are excellent for out of the way/rural locations where building a traditional home is almost impossible. Finding sub contractors, building supplies etc are tough in the sticks.

tony286 · 10-15-2008, 07:08 PM

I always heard manufactured homes are built better.

kane · 10-15-2008, 07:12 PM

Quote:

Originally Posted by Barefootsies

Good stuff sire.

I was mainly referring to construction. But that would explain a glut in the market on these mfg. homes.

Part of the reason for the glut of them on the market is simply price. If you go buy a 3 bedroom house where I live it is going to cost 200K+. A three bedroom manufactured home will cost you around 40-50K and many of them are pretty nice. The problem is they rarely have much of a resale value and don't really increase in value so unless you have them sitting on land that increases in value they are not much of an investment.

dav3 · 10-15-2008, 07:19 PM

if one were about to purchase a modular home, what would be the key areas to concentrate on during an inspection?

Barefootsies · 10-15-2008, 07:27 PM

Quote:

Originally Posted by kane

The problem is they rarely have much of a resale value and don't really increase in value so unless you have them sitting on land that increases in value they are not much of an investment.

Good tip sire.

avalanche · 10-15-2008, 07:44 PM

Quote:

Originally Posted by dav3

if one were about to purchase a modular home, what would be the key areas to concentrate on during an inspection?

Be aware that there are big differences between modular homes, manufactured homes, and mobile homes. Some people lump them all together, but they are not the same. The biggest concern when doing an inspection is finding an inspector that is familiar with that type of home specifically and making sure you get a full inspection, which you should always do on any kind of home. Why would try to save a few hundred bucks when spending thousands?

Then seriously investigate financing options before you sign any contracts.

Lastly, you should also look at homes in the surrounding area. Are they all the same kind or are they mixed. If mixed, make sure you're not buying a one of a kind home. This prevents even more problems. The example of a log home in the mountains can be a kit home (modular in style) and cause even more problems as there are zero comparables to value the house. This makes resale difficult, valuation difficult, and financing even worse!

dav3 · 10-15-2008, 08:03 PM

Quote:

Originally Posted by avalanche

Be aware that there are big differences between modular homes, manufactured homes, and mobile homes. Some people lump them all together, but they are not the same. The biggest concern when doing an inspection is finding an inspector that is familiar with that type of home specifically and making sure you get a full inspection, which you should always do on any kind of home. Why would try to save a few hundred bucks when spending thousands?

Then seriously investigate financing options before you sign any contracts.

We are actually about to close on a modular in the next 2 weeks, if the inspection goes through ok. The inspection is coming up this Saturday, so this thread seemed like a good opportunity to get some inside info to take with me.

Initially, we were going to do an FHA loan. But then my ever so diligent gf stumbled upon the USDA loans, which is nice because USDA doesn't force you to take mortgage insurance. So that's gonna save us some money there. Mortgage insurance seems like a bunch of bs anyway, at least from my limited understanding of it.

Barefootsies · 10-15-2008, 08:14 PM

Quote:

Originally Posted by dav3

We are actually about to close on a modular in the next 2 weeks, if the inspection goes through ok. The inspection is coming up this Saturday, so this thread seemed like a good opportunity to get some inside info to take with me.

Initially, we were going to do an FHA loan. But then my ever so diligent gf stumbled upon the USDA loans, which is nice because USDA doesn't force you to take mortgage insurance. So that's gonna save us some money there. Mortgage insurance seems like a bunch of bs anyway, at least from my limited understanding of it.

Nice info!

10-15-2008, 05:41 PM	#1
Barefootsies Choice is an Illusion Industry Role: Join Date: Feb 2005 Location: Land of Obama Posts: 42,635	Traditional Construction vs Manufactured Home I have seen the home shows on Tv. I have read the different things saying they are one in the same. Your thoughts? __________________ Should You Email Your Members? Link1 \| Link2 \| Link3 Enough Said. "Would you rather live like a king for a year or like a prince forever?"

10-15-2008, 05:59 PM	#2
avalanche Confirmed User Industry Role: Join Date: Feb 2005 Location: SoCal Posts: 1,922	Anyone who tells you they are the same thing is on crack! They are different in every form ranging from available loans, to insurance, to resale potential. Been in real estate for over 10 years as a broker, banker, hard money lender and about 4-5 years ago manufactured homes, in regards to financing, got a lot harder, as in almost impossible to do as almost every lender either pulled them from their allowable property types or cut the max ltv down to 65-70%. Fannie, Freddie, and FHA still do them with a very low LTV. When a customer tells you he has a manufactured home the deal is almost always dead or going to be a nightmare due to the higher credit restrictions, tighter LTV guidelines, etc. I wouldn't push a manufactured home on my worst enemy... ok, that's a stretch, but it's bad! There are types of manufactured homes that the sellers pitch as the same as an SFR, but you need to be concerned with what the bank, city and appraiser will call it, not the builder. __________________ Avalanche CherryPimps - Daily Pornstars, LIVE and more!

10-15-2008, 07:19 PM	#7
dav3 Confirmed User Industry Role: Join Date: May 2007 Posts: 7,348	if one were about to purchase a modular home, what would be the key areas to concentrate on during an inspection? __________________ Webmasters :: Juicy Ads :: ACWM :: Crak Revenue :: Money Tree

10-15-2008, 07:03 PM	#4
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,151	Manufactured homes are excellent for out of the way/rural locations where building a traditional home is almost impossible. Finding sub contractors, building supplies etc are tough in the sticks.

10-15-2008, 07:08 PM	#5
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	I always heard manufactured homes are built better.