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Wednesday
Sep302015

“Financing A Manufactured Home, A General Overview” 

One misconception is, we are the lender.  We are the Seller and we assist our customers by helping coordinate and communicate with a lender of their choice. Mid-State works with many different lenders, each with several different financing programs.

For a home buyer, financing can be both intimidating and frustrating. That's why it's extremely important to do business with a company who communicates often and efficiently with their customers.  The more communication and understanding, the faster and easier the process!  

Some, BUT NOT ALL,  Financing Programs currently available are:

  •          Land in Lieu: Essentially using your land as your down payment.  Generally qualify for a better interest rate, if there is land equity, can equal no cash down payment to purchase a home.  Can allow for land improvements to be financed in.   
  •           Land Home:  If you are purchasing land and home together, the interest rate is generally lower, but down payment required is mainly based on credit score and income.    
  •          Chattel / Home Only:  Loans which are done solely on the home to be placed on anyone's property or mobile home park.  Down payment required and interest rate dependent on credit profile, score and income.  There are several chattel loans out there, for example: a buy for, co-signer, equity buy..etc.  
  •          FHA:  FHA loans typically require a  minimum of 3.5 percent down payment minimum, more forgiving credit restrictions, higher closing fees, longer close times, better interest rates and always include private mortgage insurance (PMI)
  •          USDA:  Require no down payment and you may be able to finance up to 100% of the property value.

You must meet the income restrictions for the County you are interested in. Each county has a maximum income requirement and there are additional improvements to the land which are required.  This is not a time sensitive loan, but does offer great interest rates and no PMI.  To be eligible, you must own or purchase land in rural area as defined by the USDA.

  •          VA:  Typically require no down payment, no PMI, great interest rates but is not a quick loan process.  The home must be on private land which will become a part of the loan or land must be purchased with the home.  

Generally all Lenders will require several items of documentation before closing.  Some of these items include:  Identification poof, Social Security Cards, Proof of income (such as W-2 and current pay stubs or full income tax returns if self employed), down payment and sourcing where the down payment came from, bank statements, employment verification, land deed and/or owner information where the home will be placed, gift letters from people helping out with down payments, proof of insurance coverage,  and more!

Most home loans today, unless using land as down payment, FHA, VA or USDA loans, will require anywhere from 5% to 35% down depending upon the Buyer's credit profile, score, employment history and monthly income.   

Ultimately, the more organized and faster a borrower can provide the required documentation, the faster the loan can be closed and the home delivered. 

Don't worry...we're here to help you get your information to the Lender and help you get the best loan possible!  As always, please don't hesitate to call us with questions about your specific situation or needs.  As lending laws keep changing, so do the Lender's policies and procedures.  Now days, patience is your best attribute when looking to finance your home purchase. 

Mid-State Housing does not receive ANY interest money or "finder fee" compensation from ANY lender we are set up with!  It truly is the customer's choice which loan and lender they wish to go with!  We hope this brief overview has help answer at least some of your financing questions.  Thanks for checking out our website and we look forward to meeting you soon!  

Monday
Nov172014

Manufactured Home Warranty, 101

Of course, I can't speak for every program of each manufacture across the country, but I can tell you how it generally works for most manufacturers and retail sales centers.  Most all manufactures stand behind their products for a minimum of 1 year, with some extending their warranty programs (through 3rd parties) for an additional 9 years covering structural items. Let's use us for the example...  

When you purchase a new home from Mid-State Housing you will receive what is called a 30-day checklist as a part of your closing documents.  This document is designed to help customers organize repair notes by room.  Much like custom site built homes the builder, or in this case the manufacture, wants you to have ample time living in the home in order to identify as many cosmetic items as possible.

Once a homeowner feels like they have captured any shipping damage, loose trim, paint blemishes...etc., they will turn their list into Mid-State Housing's service department.  From there, one of two things will occur as each manufacturer can be different in how they provide warranty service.  

In the case of a manufacture who does not have local contractors or repair workers from the plant then Mid-State Housing would (using your detailed repair notes) order parts from the factory and have our full time service person make the repairs.  

In the case of a manufacture who does have local contractors or repair workers from the plant then Mid-State Housing would take your (detailed repair notes) and send them on to the factory's service department.  The factory would then call you direct to review your list, have their contractor pick up your materials and set up a time for repairs to be made.  Mid-State will help coordinate the information and provide assistance as needed.  

Some helpful hints:

-  Appliances are warranted through the appliance manufacturer, not by the home factory.

-  It's very important to register your appliances using the documentation provided in your home.

-  Emergencies, such as a water leak, usually will be handled by the Retailer and do not require factory authorization prior to repair.

-  Some warranty repairs requests require pre-authorization from the factory.

-  Be as detailed as possible when completing your 30-day service list.

-  Pictures help everyone!  Especially helping to ensure the correct materials are being shipped or picked up.

-  Scheduling and communication are keys to timely and successful repairs.  Sometimes...repair items just take time....but be assured, we will take care of our customers!      

 

Please note:  Each manufacturer may vary on standards or state requirements.  This article was written by Jon Lawson, 17 November 2014.  

Friday
Oct032014

Manufactured Home vs Modular Home

We get asked this question often...What's the difference between a manufactured home and a modular home?   A manufactured home is built to HUD (Department of Housing and Urban Development) Code and a modular home is built to IRC (International Residential Code).  Essentially, modular homes are built to the same requirements as a site built home, not considering any local authority building code requirements.

Some of the standard features in a modular home, not always found standard in a HUD home, are as follows: thermal windows, metal faucets, one piece fiberglass showers and tubs, porcelain sinks, A/C disconnect, steel insulated exterior doors, smart panel exterior, upgraded insulation, stronger floor joist, stronger rim joist, larger electrical wire, stronger top plates, window headers and larger interior wall studs.   

Some other interesting facts about modular's you might like to know are:  Generally, appraisers doing an appraisal on modular homes will be allowed to compare or "comp" against site built homes.  Modular homes have no title.  There are both on-frame and off-frame modular homes.

Mid-State Housing offers Champion Homes from both TX and TN.  Both of these plants can build modular homes.  Building a standard double wide manufactured home as a on-frame  modular can increase cost anywhere between $8,000 to $15,000.  There are several factors to consider before deciding on a modular...we'd love an opportunity to help you make the decision!

Please note:  each manufacturer may vary on standards or state requirements and not all home manufacturers can build modular homes.  

Friday
Sep122014

Severe Weather & Proper Anchoring 

-  Did you know most of the manufactured home losses during the Shawnee and El Reno Tornados of 2013 were due to faulty installations?  We attended a presentation given by RCS Enterprises – Martin Montgomery, P.E during the June 2014 Manufactured Housing Association of Oklahoma (MHAO) Annual Convention. 

-  During this presentation Mr. Montgomery walked the group through several pictures of homes destroyed while giving detailed analysis. We learned most of the homes failed due to improper anchoring and strap installation. 

-  These type of errors mostly consisted of the following: No stabilizer plates installed next to ground anchors, ground anchors not installed deep enough, failure to install anchor straps correctly on both the I-Beam of the home and/or on the anchor head itself, failure to install the proper amount of anchors or failure to install longitudinal anchors (anchors on the tongue side and end of the home).

-  When purchasing a manufactured home, don't be afraid to ask the questions about who will be installing your investment!  Be sure and find out if your home will be anchored according to the manufacturer's manual and/or State Installation Laws.

-  The proper installation of your home is critical to your family's safety and home longevity!  Mid-State Housing takes pride in making sure our customer's homes exceed the minimum set up requirements!  

Wednesday
Sep102014

New Home Site Preparation 

This year, Oklahoma has been implementing new home installation set up laws, which comply with HUDs (Department of Housing and Urban Development) Rule from 2008.

Click to read more ...