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

By
Mortgage and Lending 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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Rainmaker
200,071
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate
Mike - As I approach retirement, I;m beginning to re-think a lot of ideas that I once had.  Thanks for an enlightening article.  For some, a manufactured home may be the perfect answer to the fixed income during retirement dilemma.
Sep 28, 2007 09:10 PM #1
Anonymous
Anonymous
Anonymous
Mike - some of the doublewides I've seen lately have been absolutely beautiful with more storage space and living area than some of the newer built "real homes". Thanks for bring this to light. More lenders need to jump on the bandwagon! 
Sep 28, 2007 09:15 PM #2
Rainmaker
217,670
Joan Mirantz
Homequest Real Estate - Concord, NH
Realtor, GRI, CBR, SRES - Concord New Hampshire

Mike ...most of the sales in my office lately have been manufactured homes...it all most acn afford. And the older cash only are like hot cakes to retiree's who have been able to sell and don't want a mortgage!I'm with Marlene...I'm re-thinking!

chippyCouldn't read the name on the feeder ...sorry! Here's another picture with a not quite feathered visitor!

Sep 28, 2007 09:36 PM #3
Rainmaker
767,002
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Mike,

Right all the way on the large lots.

I tell people that they should consider buying foreclosed DW's on the big lots to get that acre or two they crave.

Of course, they think I'm nuts...

Sep 28, 2007 10:41 PM #4
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Marlene, thanks for commenting. You might want to consider Tucson!

Linda, you're absolutely right.  Don't you love being right?

Joan, I wish the little furry guy well.  Here in Tucson, rabbits and javelina eat bird seed if it's on the ground.

Mike, you're not nuts!  At least, I don't think you're nuts.  Of course, I'm an old codger...  thanks for visiting and commenting!

Mike in Tucson

Sep 28, 2007 11:08 PM #5
Rainer
130,493
Billnulls Blog Florida Realty Professional
Charles Rutenberg Realty - Clearwater, FL
AHWD
down here they have trouble getting insurance!
Sep 29, 2007 07:48 AM #6
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Bill & Barbara Jo, look for an agent who sells Foremost Insurance.

Mike in Tucson

Sep 29, 2007 09:06 AM #7
Anonymous
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.
Sep 29, 2007 09:29 AM #8
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

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

Sep 29, 2007 09:41 AM #9
Rainer
19,953
Membership Cancelled
Pullman, WA
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.
Oct 01, 2007 01:32 AM #10
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Thanks for visiting and commenting, Nathan.

Oct 01, 2007 01:47 AM #11
Rainmaker
313,191
Leslie Prest
Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ - Payson, AZ
Owner, Assoc. Broker, Prest Realty, Payson,
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.
Oct 01, 2007 01:53 PM #12
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