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I can do the Reverse Mortgage portion if you'd like me to. Merely the fact that the house was built after 1976 does not ensure that you will be approved a reverse mortgage loan. Some reverse mortgage lenders require that the manufactured house should have a minimum appraised value. Moreover, the origination fee for this loan is also relatively higher. If you are eligible for a reverse mortgage, you may be able to obtain one on a condominium unit depending on certain rules and restrictions.
Yes, your husband can apply for a reverse mortgage as long as you guys own the land. You would be an eligible non-borrowing spouse on the application. You would want to discuss what that means with a loan officer or reverse mortgage counselor.
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In addition to the structure needing to meet the HUD requirements, HUD also requires that the appraiser can demonstrate that the manufactured home is marketable. In order to do so, the appraiser must be able to locate and use reasonable sales of other similar properties that have sold recently to support the value and marketability. In other words, if the appraiser is unable to find other manufactured homes in the area that are similar and have sold recently, the loan would not be able to close. It's in this requirement that borrowers often find difficulties if they are located in an area where there are not many manufactured homes or not many have sold. HUD will allow manufactured homes when the borrower owns the land and with other provisions but not when the home is located in a coop or condominium type ownership.
If those requirements are met, the loan takes no longer than any other reverse mortgage and so before I could give you any kind of an honest answer, I would need to know when the last requirement was met. If all the requirements including the manufactured home foundation inspection were all completed 6 months ago, something is definitely wrong. If, however there are no recent, nearby sales, there is no way to determine the marketability or the amount a buyer is willing to pay for such a property and therefore, HUD will not insure the loan.
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The interior data plate is not a requirement to get the loan, as we are able to get that information from an agency (Institute for Building Technology & Safety) that has access to it. 3) Condo – property is collectively owned by the association – only eligible for a reverse mortgage if the condo complex is FHA-approved. Keep in mind that we won’t be able to include 320 acres of land as part of the valuation for the loan. The appraiser will be looking for three similar manufactured home sales in the past year and will use the acreage that is typical for those three sales.
Reverse mortgages, also known as home equity conversion mortgages , are used to turn a portion of your home equity into cash in the form of tax-free loan disbursements. This act standardized the construction of mobile homes, ensuring a higher degree of safety. In order to satisfy FHA and HUD standards for reverse mortgage eligibility, mobile homes must have been built after that act was passed.
Can you get a reverse mortgage loan on a mobile home?
Additionally, they are registered with the DMV and are taxed as personal property rather than real property. If the home was manufactured before June 15, 1976, it is defined as a mobile home. These older structures do not qualify for reverse mortgages due to the small and unsafe framework which fails to meet current standards. This post is not intended to go over the requirements that pertain to income, credit, etc.. The following is just a quick look at the most basic criteria required for your property.
Age, home value and loan type are just a few of the factors that will influence how much you can get with a reverse mortgage. The newer it is the more likely you will get financing. The lender will want their money back before the house wears out. The type of foundation you have, i.e., cement basement, concrete footing, wooden blocks. You may find that lenders are leery of homes that can easily be moved away under the cover of night.
Interest on the HECM loan is the same for manufactured homes click on the link above and you will be taken to our rates page you can select both a fixed or adjustable rate. Those applying for a reverse mortgage must also meet with an HUD-approved mortgage counselor to discuss how the loan functions and the applicants obligations. The borrower must be at least 62 years of age, act as the principal resident and either own the home outright or be able to pay off their mortgage balance with the proceeds generated from closing the reverse mortgage. Ask your lender what payment options they offer for a reverse mortgage. Also ask whether there are any restrictions or fees. Once you pass all the requirements listed above, you have a couple more steps to go before getting a reverse mortgage on a manufactured home.
For example, you may be able to take out a reverse mortgage to simply lower the payments on your existing primary residence, thus freeing up money to make payments on a conventional loan for a second home. Or, you may be able to use the lump sum proceeds from your reverse mortgage to pay in full for a vacation property. Technically, a mobile home is a factory built home that was constructed before June 15, 1976. These mobile homes are not eligible for the FHA / HUD insured reverse mortgage.
Its taken to the home site and placed on a non-permanent type of foundation such as blocked wood, or a concrete pedestal or steel piles. One level on the temporary foundation, a skirt is put around the perimeter of the home for insulation purposes and for visual appeal. The only way one can mortgage a home such as this is if the home is on an owned lot as opposed to a rented spot.
I honestly cannot say but the method of attachment to the permanent foundation is HUD's requirement and lender's do not have any discretion in this area if they expect to obtain the required insurance. As with any prospective borrower, you must be aged 62 or older, you must legally own the home, it must be your primary residence, and you must be eligible for participation in Federal Housing Administration programs. It is very possible for you to purchase a manufactured home that is eligible going by HUD guidelines with a reverse mortgage, however, it might not be a very great idea.
In terms of home lending, modular homes are treated more like site built or stick built homes that would be classified as an SFR. Most loans will work for a modular home just like a stick or site built home. If the home was bought new in 1999 and placed on one lot and then moved in 2004 to its current location, it would not meet most lender's requirements to lend on a manufactured home as it has been moved multiple times. HUD also has provisions for insuring a reverse mortgage for manufactured housing with additional specific requirements in the case of manufactured homes on leased land. Typically, any homes that HUD looks at to insure the loans must be readily marketable and that means that there must be recent sales of similar properties for the appraiser to use when determining the value.
Another difference between an FHA insured reverse mortgage and a regular mortgage is that there is an equity requirement. Every age bucket from age 62 to 92 plus allows you to borrow a different percentage of your home’s value. Keep in mind that this can change based on interest rates on any given week. At age 62 you can borrow about 52% of the appraised value.
But 6 months is too long unless you are aware of specific issues with which your lender has been working but they should be able to give you a status to let you know where they are in the process. I'm sorry I cannot give you exact numbers for the foundation and any other possibilities but I would simply be guessing. I would suggest you take a few minutes and call around your area to see with foundation inspections for HUD on manufactured homes costs and you can really narrow that down. You can choose your own inspector so you have a chance to shop for the service and choose a provider who gives you a good price. You have another problem that is even larger than worrying about the mobile being included in the mortgage.
