I'm Financing a Lot of Manufactured Homes. Amazing!

By
Mortgage Banker with SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171)

 Manufactured housing is not the trainwreck that it's perceived to be by the lending community.  'Course when a real train hits a single-wide, you're looking at the result on the right.

Manufactured homes in Tucson are generally located on lots three to five times larger than those for new construction.   They're affordable at one-third to one-half the price of a site-built home.

Of course, since Fannie Mae tightened up on the guidelines, they're more difficult to finance, but I'm doing more existing (not new) manufactured home loans now than at any time in the past four years.

Objections to purchasing manufactured homes during the past three years included a common theme:  "They won't appreciate like site-built homes."

 I agree.  But while site-builts in investor-ridden communities languish, buyers are looking for value, and the price of many manufactured homes in Tucson and the surrounding communities is on a par with the price of much smaller improved lots. 

Many have phenomonal views, especially in Picture Rocks and Catalina.  What that will mean in the future is this:  in the next rising market, the home will be scrapped and a new site-built home will command those wonderful views.

Another objection:  "They can't be financed without upgrading them to FHA certified foundations.  Contrary to popular opinion, manufactured homes don't have to be mounted on FHA-certified foundations to qualify for conventional loans at reasonable rates.

The median home price in Tucson is now over a quarter of a million dollars.  The selling price for the manufactured home purchases I'm seeing range from $115,000 to $145,000.  So bring 'em on!

That's the real estate opinion of this Tucson Mortgage Lender.

Mike in Tucson

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Topic:
ActiveRain Community
Location:
Arizona Pima County Tucson Picture Rocks
Groups:
Arizona Mortgages
Arizona Homes
Realtors®
The FHA Mortgage Group
Tucson Real Estate
Tags:
real estate opinion
mike in tucson

Comments 12 New Comment

Anonymous #8
Anonymous
Anonymous
Mike, Here in Florida a lot of manufactured homes look like permanent homes.  It's amazing.  They don't stand up as well with Hurricanes of course.
September 29, 2007 09:29 AM
Ambassador
715,019
Mike Jones
Mike Jones NMLS 223495
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171)

Thanks for commenting, Dan.  They fare no better here in a hurricane.  'Course we never have hurricanes...  And we have more than 300 days of sunshine.  Come visit, and let's have a cup of Joe.

Mike in Tucson

September 29, 2007 09:41 AM
Rainer
19,953
Membership Cancelled
I sold MFG homes for about seven years and was a GM of a large dealership for years...it was tough. There are plenty out there and if you know what you are doing, some money can be made.
October 01, 2007 01:32 AM
Ambassador
715,019
Mike Jones
Mike Jones NMLS 223495
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171)

Thanks for visiting and commenting, Nathan.

October 01, 2007 01:47 AM
Rainmaker
305,601
Leslie Prest
Owner, Assoc. Broker, Prest Realty, Payson,
Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ
At least you know what a manufactured home IS. We have a lot of these, and I've had some spirited discussions with out-of-town lenders about the difference between a trailer and a manufactured home.
October 01, 2007 01:53 PM
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Mike Jones

Mike Jones NMLS 223495
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