What is the difference between manufactured, modular, and mobile homes?
A
Manufactured Homes (HUD homes): These are homes built entirely in the factory under a federal building code administered by the U.S. Department of Housing and Urban Development (HUD). The Federal Manufactured Home Construction and Safety Standards (commonly known as the HUD Code) went into effect June 15, 1976. Manufactured homes may be single- or multi-section and are transported to the site and installed. On-site additions, such as garages, decks and porches, often add to the attractiveness of manufactured homes and must be built to local, state or regional building codes.
Modular Homes: These factory-built homes are built to the state, local or regional code where the home will be located. Modules are transported to the site and installed.
Mobile Homes (pre-HUD homes): This is the term used for manufactured homes produced prior to June 15, 1976, when the HUD Code went into effect.
Just as site built homes are constructed according to a specific building code to ensure proper design and safety, today's manufactured homes are constructed in accordance with the HUD Code.
In its legislation, Congress directed the Secretary of the U.S. Department of Housing and Urban Development (HUD) to establish appropriate manufactured home construction and safety standards that meet the highest standards of protection, taking into account existing state and local laws relating to manufactured home safety and construction.
Every HUD Code manufactured home is built in a factory, under controlled conditions, and has a special label affixed on the exterior of the home indicating that the home has been designed, constructed, tested and inspected to comply with the stringent federal standards set forth in the code. No manufactured home may be shipped from the factory unless it complies with the HUD Code and is released for shipment by an independent third party inspector certified by HUD.
The HUD Code is specifically designed for compatibility with the factory production process. Performance standards for heating, plumbing, air conditioning, thermal and electrical systems are set in the code. In addition, performance requirements are established for structural design, construction, fire safety, energy efficiency, and transportation from the factory to the customer's home site. Manufactured homes are constructed with virtually the same materials used in site-built homes. However, in contrast to traditional site-building techniques, manufactured homes have the advantage of using engineered design applications and the most cost-efficient assembly-line techniques to produce a quality home at a much lower cost per square foot.
Many lenders will not finance homes that are not built to these standards (pre-HUD homes). Often times, lenders that will finance the older homes require higher down payments and offer higher interest rates with shorter terms.
Appraisal inspections are required on all loan transactions. Lenders need to see the subject property and know about the amenities and how they compare with other properties that have sold in the same or near by Park Communities. Appraisals are necessary in providing a lender current market data that describe the individual property as well as the park community and surrounding neighborhoods. Every lender requires that the final value given by the appraiser meets lender guidelines and ensures the buyer is paying fair market value.
An Escrow Company is an independent third party that handles funds, carries out the instructions of the lender, buyer, and seller in a transaction; and deals with all the documents.
In California all finance transactions must take place through an escrow or title company.
The most common reason for refinancing is to save money. Saving money through refinancing can be achieved in many ways. The most popular reason is to obtain a lower interest rate that causes the monthly mortgage payment to be reduced. Debt consolidation is a great way to pull equity out of your home to payoff high interest credit card debt. Reducing the term of the loan can save money over the life of the loan.
The loan process can be very fast depending on how fast we can collect all the loan documents from the borrower. When borrowers are prepared to send verification of income, employment and down payment as well as any other lender required documents we can have all conditions cleared by the lender and loan documents in escrow for signing within days.
