This week in our state guide series we are talking about what to know when buying a mobile home in Massachusetts. Massachusetts is one of the 5 smallest states across the country, but is home to variety of manufactured homes.
Massachusetts Facts
Massachusetts is full of so many cool places to place a mobile home. Beautiful small towns, ocean front properties, as well as urban areas are all perfect places to place anything from a tiny home to a larger mobile home great for bigger families. Take a look at some other mobile home facts about Massachusetts:
The average price of a pre-owned home: $117742 Average model year of a pre-owned home: 1992 Average pre-owned home size in square feet: 974 Average sites in a manufactured home community: 90 Average year a community was developed: 1993 Number of age-restricted communities: 58 Number of all-age communities: 64
When buying a mobile home in Massachusetts, one of the first places to start is the Massachusetts Manufactured Housing Association page. Although the site is new, you can still access members of the association that can help you navigate the home buying process. From finding a reputable dealer and how to find financing, the association can help.
Massachusetts MHA PO Box 73 Halifax, MA 02338 (508) 460-9523 www.massmha.org
After Buying a Mobile Home in Massachusetts
The state of Massachusetts does not often require mobile home titles. A Bill of Sale is most common to show proof of ownership. The Registry of Motor Vehicles does not recognize manufactured homes as a titleable vehicle, although mobile homes must be registered if put on the road to move.
If your home is placed on a permanent foundation on land you own, it will recognized as real estate in Massachusetts. You should reach out to the county clerk for what steps to follow.
Keep in mind, if you are buying from a dealer, they will usually take care of this for you. Just be sure to ask them during the closing process.
What if There’s an Issue?
Unfortunately, there are times after the purchase of a new manufactured home when things don’t go quite right. Whether its a defect from the manufacturer or a problem during the installation, sometimes you just need some help to get things fixed.
Your first option should always be talking to the dealer you purchased from. Typically, they have a dedicated staff that is trained to take care of any issues you have. Don’t forget you have an automatic one year warranty with your new home. Just be sure to keep a record of any correspondence you have and try and use certified mail so you have a record of your efforts.
If you aren’t able to get your issues handled, you will need to reach out to the HUD Manufactured Housing Dispute Resolution Program. Massachusetts doesn’t administer their program. Instead, they are a part of the federal program that is in place. You can submit your complaint in the following ways:
This week we continue our state buying guide with things to know when buying a mobile home in Nebraska. We take a look at all the things to consider such as where to find information before making a purchase, what to do if there is a problem after the sale and a peek at some of the mobile homes that can be found in the state.
The Facts About Nebraska
Nebraska sits right in the middle of the country and is currently home to almost 2 million people. It appears to be slowly gaining in population each year. Which makes it the perfect time to consider buying a mobile home in Nebraska! Here are a few facts about mobile homes in the state:
The average price of a pre-owned home: $54002 Average model year of a pre-owned home: 2015 Average pre-owned home size in square feet: 1074 Average sites in a manufactured home community: 113 Average year a community was developed: 1996 Number of age-restricted communities: 1 Number of all-age communities: 97
Placing A Mobile Home On A Permanent Foundation Immediately Increases Its Value.
What to Know Before Shopping
Research is key when considering buying a mobile home. Deciding how much home you need, how you are going to pay for your new home and where that home is going to be placed are just a few of the questions that need to be addressed. So, it makes sense that most states have in place a site to help with those questions. Nebraska’s site, the Nebraska Manufactured Home Association, answers these questions and more.
After buying a mobile home in Nebraska you will need to make that new home legal. If you are buying a used home you will need to visit a local DMV office and title the home in your name. If you are buying new, your dealer will typically handle that paperwork for you.
If you are permanently placing your mobile home on property you own, you will still need to file for a title. Once that has been issued you can then have the title cancelled and the home will be reclassified as real estate.
What to Do If There Are Issues After the Sale
Unfortunately, there may be times your new mobile home has issues that need to be handled. These can be problems that happened during the building of the home, during setup, or even after the home is installed. Luckily, a new mobile home includes a one year manufactured warranty. There are also a couple of manufactured home builders that offer 5 and even 7-year warranties. Any issues or defects from the factory or the installation are usually handled by the dealer.
Be sure to correspond in writing whenever possible so that you have a paper trail if you aren’t able to get your issues resolved directly with the manufacturer or dealer.
If you aren’t able to get your issues resolved, you will need to utilize the HUD Manufactured Housing Dispute Resolution Program. Nebraska doesn’t administer their program, however, they are a part of the federal program that is in place. You can submit your complaint in the following ways:
ATTN: Manufactured Home Dispute Resolution Program
1676 International Drive
Suite 501
McLean, Virginia, 22102
Mobile Home Living in Nebraska
Finding mobile homes to share from the state of Nebraska was a little tougher than it has been for most states. For example, on Zillow there were less than 40 manufactured homes listed. But we need manage to find a few great-looking properties to share!
A Covered Porch Would Be A Plus For The Cold Winters In Nebraska.Love The Streamlined Look Of This Double Wide.
Although mobile homes have yet become the top choice for potential homeowners, as the population continues to climb, so will the need for cost-effective housing in Nebraska. Which can only mean an increase in manufactured housing in the state.
With only two states to go, watch for next week’s installment when we take a look at buying a mobile home in Massachusetts.
This week we are taking a look at buying a mobile home in New Jersey, which happens to be the most densely populated state with more people per square mile than any other state in the country. From how to research before buying to taking a look at some of the cool homes in the state we cover it all.
Facts About New Jersey
There are over 127 miles of coastline in New Jersey. Which makes it the perfect home for some great vacation retreats full of cool mobile homes. Take a look at some of the other facts we found about mobile homes in New Jersey:
Average price of a pre-owned home: $82062 Average model year of a pre-owned home: 2001 Average pre-owned home size in square feet: 1101 Average sites in a manufactured home community: 166 Average year a community was developed: 1979 Number of age-restricted communities: 66 Number of all-age communities: 151
Even A Small Covered Landing Can Complete The Look Of A Mobile Home.
How to Research Before You Buy
One of the biggest resources a potential homeowner has when considering buying a mobile home in New Jersey is access to the New Jersey Manufactured Housing Association site. While there you can learn why manufactured housing is becoming a top choice for new homeowners, what value and features are found in mobile homes, as well as how to finance and where to place your new mobile home.
New Jersey MHA 2741 Nottingham Way Trenton, NJ 08619 (609) 588-9040 www.njmha.org
Registering Your New Mobile Home
According to the New Jersey Motor Vehicle Commission, a mobile home will need to be titled within 10 days of purchase in order not to have a penalty. You will need to bring the following when registering your home:
Acceptable proof of identification.
A properly completed, signed, original Manufacturer’s Certificate of Origin (MCO) or title.
If the vehicle is financed, you must provide the address and Entity Identification Number (formerly corpcode) of the lien holder. The original title will be sent to the lien holder.
$60 fee or $85 fee for a financed vehicle.
Remember, if you are buying a new mobile home the dealer will usually take care of the registration for you. Just make sure when you are signing the necessary paperwork at closing you make sure its included.
Handling Any Issues After the Sale
All new mobile homes include a 1-year manufactured home warranty. This warranty covers defects from the manufacturer as well as issues that may be a result of installation. Make sure you take a good look at your new home after it has been setup. Contact the dealer if you see any issues. Be sure to keep good records of any communications (preferably communicate in writing) so that you have a paper trail showing you have tried to resolve your issues within the first year.
If you aren’t able to get your issues resolved, you will need to utilize the HUD Manufactured Housing Dispute Resolution Program. New Jersey doesn’t administer their program. Instead, they are a part of the federal program that handles these issues. You can submit your complaint in the following ways:
Online Email: info@huddrp.net Phone: 571-882-2928 Fax: 888-819-5191 Mail (preferably certified): ATTN: Manufactured Home Dispute Resolution Program 1676 International Drive Suite 501 McLean, Virginia, 22102
Mobile Home Living in New Jersey
When looking for cool mobile homes to share with you in New Jersey, the first thing I noticed was the variety of homes available. Although New Jersey is mostly urban, there are homes on Zillow in mobile home parks, on their own land, and plenty of waterfront homes that would make wonderful vacation homes.
Take a look at just a few that are available:
Looks Like Perfect Lake Front Living!Picture Perfect!Awnings are a good choice if a porch isn’t an option.
Buying a mobile home in New Jersey is a great idea. With the ever growing population in the state, manufactured housing is going to continue to be a wise choice for potential homeowners that is both economical and offers all the same value as stick built homes.
Stay tuned as we wind down our series, with Nebraska, Oklahoma, and Massachusetts finishing us out.
With only 5 states to go, this week we are exploring buying a mobile home in Minnesota. Minnesota is home to over 5.6 million people. No doubt that’s why there are so many people making mobile homes their new home.
Minnesota Facts and Figures
I bet you didn’t know that Minnesota is home to over 10,000 lakes. This makes it a great spot for vacation homes such as Park Models. Here are some other interesting facts about mobile homes in Minnesota:
Average price of a pre-owned home: $62229 Average model year of a pre-owned home: 2009 Average pre-owned home size in square feet: 1236 Average sites in a manufactured home community: 115 Average year a community was developed: 1983 Number of age-restricted communities: 14 Number of all-age communities: 312
Before buying a mobile home in Minnesota you are going to want to visit the Minnesota Manufactured Housing Association page. While you are there you can find potential communities, retailers, a list of builders in the state, and where to find help with financing and insurance needs.
Minnesota MHA 1540 Humboldt Ave. W Saint Paul, MN 55118 (651) 450-4700 www.mnmfghome.org
What’s Next After the Sale
Minnesota is one of many states that still consider manufactured homes as personal property rather than real estate. You will need to title your new or new to you home at your local DMV using the application for title to a manufactured home form.
Keep in mind, when buying a mobile home in Minnesota the state does recognize the mobile home if it’s placed on private property that you own and have a Mortgage this home is then permanently affixed to real property. In this scenario, the Certificate of Origin would need to be SURRENDERED to the Driver and Vehicle Services and it is canceled. Once it is surrendered the homeowner then needs to record the Affidavit of Affixed Manufactured Home to Real Property with the county recorder or register of titles for the county where the real property on which the manufactured home is affixed or located.
Dealer and Setup Issues
If you are buying a new mobile home, it includes a one year manufactured warranty. Any problems or defects that come from the factory or during installation can be taken care of by contacting your dealer. They typically have a staff that handles any problems that occur. Don’t forget to keep a record of any correspondence (typically contact them in writing via certified mail) so that you have a paper trail in case your issues aren’t resolved.
If you are not able to get your issues resolved, it may be time to file a complaint to get your issues handles. Minnesota handles its own HUD dispute resolution program and information regarding the filing process can be found on the Minnesota Department of Labor and Industry site or by contacting the office directly at:
Minnesota Department of Labor and Industry Construction Codes and Licensing Division 443 Lafayette Road North St. Paul, MN 55155-4341 PH: 651-284-4341
Mobile Home Living in Minnesota
One of our favorite parts of this state series has been taking a look at a few of the wonderful homes that can be found in each state. Zillow had over 300 mobile homes last time we checked. You can also find mobile homes on the Facebook marketplace and other realtor sites as well. So many great options are available.
Full Porches Can Really Enhance A Mobile Home’S Appearance.This Home Is Beautiful.
With an ever-growing population, buying a mobile home in Minnesota is a smart choice for potential homebuyers. Not only are they more economical than stick-built homes but they also hold their value as well as conventional homes! Stay tuned as we wind down our state guide series with only 4 states left to cover, with a look at New Jersey next week.
Our state guide series is continuing this week with a look at things to remember when buying a mobile home in New Hampshire. Known as the Switzerland of America, it shouldn’t be surprising that people love to live and vacation in this beautiful state.
Mobile Home Living Facts in New Hampshire
One of the 5 smallest states in the country, New Hampshire is a lovely combination of mountains and towns. Which of course makes it perfect for mobile homes. Take a look at these other facts we found about the state:
The average price of a pre-owned home: $104162 Average model year of a pre-owned home: 2009 Average pre-owned home size in square feet: 1033 Average sites in a manufactured home community: 75 Average year a community was developed: 1988 Number of age-restricted communities: 37 Number of all-age communities: 242
Buying a mobile home is a big deal. So, it’s important to do your homework before making such a big purchase. Fortunately, we have a whole section on Mobile Home Living devoted to just that. Visit our Buying a Manufactured Home section for information on deciding how much home you need, to financing options, as well as the questions to ask when visiting a dealer.
New Hampshire doesn’t have a section on their Manufactured Housing Association site devoted to consumers. However, feel free to contact them with any questions you may have.
New Hampshire MHA PO Box 451 Concord, NH 03302 (603) 629-9369 www.nhmmha.com
After the Sale
After buying a mobile home in New Hampshire you will need to make sure that your home is titled under your name. The process seems to be a little different than in most states, New Hampshire changed their state law in 1983 to recognize manufactured homes as real estate, which means ownership is marked with a warranty deed rather than a bill of sale or title. This was put into place to make it easier for conventional loans to be used to buy manufactured housing.
So, if you are buying from a dealer, make sure they are handling the transfer of ownership for you. If you are buying a pre-owned mobile home, contact your county clerk office to make sure you complete the process correctly.
Issues After Installation
Every new mobile home includes a 1-year manufactured home warranty. This warranty covers defects from the manufacturer as well as issues that may go wrong during installation. If you have an issue, be sure to keep good records of any communications (preferably send everything in writing) so that you have a paper trail showing you have tried to resolve your issues within the first year.
If you aren’t able to get those issues resolved with the manufacturer or dealer, its time to file a complaint. New Hampshire handles their own HUD dispute resolution program and you can file your request by mail, telephone, email, fax, or online.
Board of Manufactured Housing 121 South Fruit Street Concord, New Hampshire 03301 (603) 271-2219 (603) 271-6990 (fax) vog.hn.clpoobfsctd-3ac704@relsiw.ykcir
Mobile Home Living in New Hampshire
There were so many great mobile homes to choose from that are available in New Hampshire. Here are just a few that we found on Zillow.
This Older Mobile Home Looks Well Taken Care Of.This Single Wide Has Two Front Entrances.Love These Double Wides With The Built-In Porches.
Buying a mobile home in New Hampshire is a great way to live in the state economically and beautifully. From tiny homes to big ‘ol triple wides the options are endless.
If you would have asked me 10 years ago if I thought it was possible for the mobile homes stigma to disappear I would have probably laughed at you and asked if you were serious.
If you ask me that same question today I’d say yes, it is possible for mobile homes to lose their stigma and it’s happening right before our eyes!
The Beginning of the Mobile Home Stigma
Mobile home owners have dealt with stereotypes and stigmas since the beginning.
The American trailer industry was in its infancy in the late 1930’s. Due to WWII, they had to produce thousands of homes for the US government to house migrate workers, a necessity to keep the country going during the war. The industry didn’t have the experience or the materials needed to build the homes properly and thousands of people lived in poorly designed and poorly built trailers for several years. From there, it was an uphill battle to get affordable housing accepted in communities and towns.
Those of us familiar with the homes understand their many great benefits but we’ve always had to deal with the stigma and smile politely whenever we hear the words trailer trash.
Fortunately, the times are changing.
So, Is the Mobile Home Stigma Disappearing?
The other day I was browsing a popular site called Imgur and came across something that made me smile.
Imgur is a popular image sharing site that was developed for Reddit.com. Users submit links to Reddit using Imgur because Reddit only accepts links and text and readers vote on them. Submissions with the most votes are featured on the front pages.
The following image was submitted to Imgur and reached the front page with the title ‘Priorities.’
If I had to guess, the person that submitted it meant it to be a negative connotation because a fancy car is parked in front of a mobile home and that meant the owner had their priorities all wrong. I mean, why would anyone want to live in a mobile home, right?
I expected to see some depressing comments agreeing with the submitter but I was wrong. Very wrong!
Before I show you the comments, I think its important to tell you about Imgur’s readership. Wikipedia states that the median Reddit user is a male American between the ages of 18-29. Females within the same age range are the second largest usergroup on the site.
The young age is an important factor to consider because here are the top comments for the image shared above (I covered up the not-so-nice language):
And even more comments:
These are young adults standing up against the mobile home stigma!
I don’t think you would have seen anything like this happen 10 years ago. At least, I don’t recall ever seeing anything like this before. I’m used to reading ignorant, biased, unbecoming comments when manufactured homes are mentioned anywhere online.
It’s refreshing to see these people standing up for affordable living and it gives me a lot of hope that perhaps others will realize that living within your means is just as great as living in a site-built home with an outrageous mortgage.
As I was reading these comments, I couldn’t help but smile.
We are continuing our mobile home buying guide as our attention stays north this week with a look at buying a mobile home in Connecticut. We only have a handful of states left to cover, including a look at Nebraska, Minnesota, and Wyoming in the coming weeks. Here’s a list of all of our state guides.
A Covered Porch Is Important For The Cold Connecticut Winters.
The Facts About Mobile Homes in Connecticut
Did you know there are only two states smaller than Connecticut in the US but there are over 3.5 million people living in the state? We also found these facts about mobile homes in Connecticut:
The average price of a pre-owned home: $80993 Average model year of a pre-owned home: 1996 Average pre-owned home size in square feet: 936 Average sites in a manufactured home community: 86 Average year a community was developed: 1979 Number of age-restricted communities: 27 Number of all-age communities: 86
There are so many things to consider when making a big purchase. If you are thinking about buying a mobile home in Connecticut your first place to start is the Connecticut Manufactured Housing Association. Not only do they have links to different manufacturers available in the state, but they also have listings for all the mobile home communities and all of the businesses that are members of the association.
Connecticut MHA PO Box 605 Bristol, CT 06011 (860) 584-5915
Keep This in Mind After The Sale
Once you have decided on your new or “new to you” mobile home its time to make it legal. Connecticut does things a little differently than most states. Here’s what we were able to find on the Connecticut government site:
Any person owning a mobile manufactured home on or after October 1, 1986, shall file with the town clerk of the municipality in which the mobile manufactured home is located a certificate of title, bill of sale or other document evidencing the person’s ownership of the mobile manufactured home. On or after October 1, 1986, any person holding a security interest in any such mobile manufactured home may file the security interest for recording in the land records of the municipality in which the mobile manufactured home is located.
So, my suggestion would be to contact your local DMV or county clerk’s office to see exactly what their process is. It seems to be different depending on the placement of the home and the age.
As we have mentioned before, all new mobile homes include a 1-year manufactured home warranty. The warranty covers defects from the manufacturer as well as issues that may go wrong during installation. Be sure to keep good records of any communications (preferably communicate in writing) so that you have a paper trail showing you have tried to resolve your issues within the first year.
If you aren’t able to get your issues resolved, you will need to utilize the HUD Manufactured Housing Dispute Resolution Program. Connecticut is one of the states that doesn’t administer their own program. Instead, they are a part of the federal program that is in place. You can submit your complaint in the following ways:
Online Email: ten.prdduhobfsctd-72c6a8@ofni Phone: 571-882-2928 Fax: 888-819-5191 Mail (preferably certified): ATTN: Manufactured Home Dispute Resolution Program 1676 International Drive Suite 501 McLean, Virginia, 22102
Mobile Home Living in Connecticut
Every week our favorite part of these articles is sharing some of the awesome homes that you can find when you are thinking about buying a mobile home in Connecticut. These were found on Zillow, but you can find great buys on Realtor.com and sites such as Facebook Marketplace as well.
Love The Sun Porch That Connects This Mobile Home And Garage.With A Canopy Added In The Summer, This Porch Is Perfect!Love The Landscape Addition At The End Of This Home.
As you can tell buying a mobile home in Connecticut is a pretty simple process, as it is in most states. Not to mention, there are some great homes available. So, if you are living in Connecticut, mobile home living is the way to go!
As always we appreciate you reading Mobile Home Living.
The use of chattel financing for manufactured homes has exploded in recent years. 80% of new manufactured homes purchased in 2015 were titled as chattel. Only 34% of those were placed in a manufactured home community which means 66% of new manufactured homes bought in 2015 may have qualified for a standard mortgage but instead the homebuyers opted to forego permanent installation and went with chattel financing. Why are more homebuyers going with chattel loans over a traditional mortgage even when they own the land under the manufactured home?
In this article, we’ll try to answer that question and many more. We’ll cover the basics of chattel financing for manufactured homes and look into the differences between loans through a private bank or a manufactured housing lender.
2 Types of Loans for Manufactured Homes
There are two ways to finance a manufactured home both new and used. The first is with an FHA or conventional home mortgage and the second is a chattel loan. Chattel loans are the most popular loans for all manufactured homes.
FHA and Conventional Mortgages for Manufactured Homes
When a manufactured home leaves the factory it is automatically classified as personal property or chattel.
In order to qualify a manufactured home for an FHA or conventional mortgage, it must be permanently installed on land owned by the person buying the home and have a fixture filing recorded.
“In 43 states, a manufactured home remains personal property until the manufactured homeowner completes the “Conversion Procedure” – a statutory procedure for electing to convey and encumber a manufacture dhome as real property. In those states, completely the conversion procedure legally converts the manufactured home to real property for all purposes. Thus, absent such a process, a manufactured home will not comnstitute as a fixture.”
Fannie Mae, June 2018
Once the conversion procedure is done, the manufactured home will be classified as a fixture to the real estate.
There is a 3-part test used to determine whether the manufactured home is a fixture:
How is the home affixed to the real estate?
What is the intent of the home? (this is the most important factor)
What are the fixture and real estate used for?
What is an FHA or Conventional Mortgage?
If the home buyer owns their own property and has the home permanently installed on that land as a fixture, they can reclassify the home as real property and qualify for an FHA or conventional mortgage.
FHA mortgage loans are insured by programs of the Federal Housing Administration. When a loan can be insured by Fannie Mae or Freddie Mac lenders are more prone to lend.
A conventional loan is not insured by the government but by private mortgage insurers (aka PMI). These are a bit easier to get.
Average Terms for FHA and Conventional Mortgage
Having the home installed as a fixture and reclassified as real property is only the first step in getting an FHA or conventional mortgage.
Both FHA and conventional mortgages have higher requirements than a chattel loan. With FHA loans you need to meet both the lender’s requirements and the FHA’s. Here are just a few of the typical terms and requirements for a conventional mortgage:
Applicant must have 620+ credit
As low as 3% down
As high as 36% debt to income ratios (but can go as high as 50%)
15, 20, or 30- year terms
Max loan of $484,350 but can go as high as $750k in places like LA
Average APR is currently between 2.88% and 5.75%
Defaulting on an FHA or Conventional Mortgage
If a manufactured homeowner has a FHA or conventional mortgage on their property and can’t pay the loan there are several steps before repossession occurs that will protects the homeowner.
First, the lender must provide homeownership counseling notice and implement an error resolution procedure. Next, they must comply with “constraints related to force-placed insurance, follow early intervention requirements, and provide for a single point of contact for loss mitigation.” (Fannie Mae, June 2018)
Finally, in most states, judicial court proceedings must occur before foreclosure. This entire process can take anywhere from 300 to 1,230 days.
If the manufactured home will not be permanently installed on owned land it will remain classified as personal property. These homes are only eligible for chattel loans.
By definition, a chattel is an item of moveable property other than real estate. Cars, boats, RVs, heavy equipment and manufactured homes are all considered chattel. However, in most situations when you hear the words chattel loan they mean a loan on a moveable home, aka a manufactured home.
Investopedia states that in some parts of the country chattel home loans are referred to as simple security agreements and the terms ‘personal property security’ and ‘a lien on personal property’ are synonyms for a chattel mortgage. Interest rates on these loans are typically much higher than traditional mortgages and during an active chattel loan, the lender has conditional ownership of the property (Investopedia).
Chattel loans will have an APR that is usually 1-2% higher than a traditional loan and will not have the same protections as traditional mortgages. Average terms for a chattel loan are between 15-23 years whereas a traditional mortgage can have termed as long as 30 years. A lender can take possession of the manufactured home much quicker than a traditional mortgage lender after delinquency. In addition, it is very difficult (if not impossible) to get a chattel loan refinanced.
Average Terms of a Chattel Loan
Cascade Loans has a list on their site of typical qualifications for manufactured home financing:
Applicant must have 575+ credit
Minimum loan amount of $35K
New single or multi-section manufactured homes are eligible
Since chattel loans are mostly used for manufactured homes that are not permanently installed on buyer-owned land the government does not regulate them or insure the loans like they can with traditional mortgages.
The two government-sponsored enterprises (Fannie Mae and Freddie Mac) will more typically buy or securitize loans secured by real estate, while staying clear of “chattel loans” — used for most manufactured home purchases — a type of financing in which a home is not legally bound to its land.
AmericanBanker.com
Current Sources for Chattel Loans
CFED, a nonprofit agency in Washington DC, has a division called I’M HOME that advocates manufactured home financing. They answered the FHFA’s request for input about chattel financing in 2017. In that answer for input they created a list of the top 5 sources for chattel loans in the nation:
They also found that over 2,700 lenders originated at least one manufactured home chattel loan in 2015.
Parks also offer chattel financing. In their report, CFED states that over 500 land-lease communities have provided over $3.5 billion in park-owned seller financing. Though this is mostly concentrated by only the largest parks, representing the “ownership of about 25% of the country’s 50,000 land-lease communities.” (CFED I’M HOME 2017)
Defaulting on a Chattel Loan
Defaulting on a chattel loan is completely different from default on an FHA or conventional mortgage. The UCC (Uniform Consumer Credit Code) typically regulates chattel loans but 11 states have their own regulations.
The process for repossessing and reselling a manufactured home secured by a chattel loan requires sending the “debtor a notice of default and a right to cure; gaining possession of the manufactured home either by voluntary surrender or court order; sending the debtor a notice of repossession, notice of right to reinstate, notice to redeem and notice of private or public sale; remarketing the manufactured home; conducting the sale; documenting the sale; retitling the manufactured home, and sending the debtor an Explanation of Calculation of Surplus or Deficiency or a waiver of Deficiency.” (Fannie Mae, June 2018)
This entire process takes only 30-81 days.
Conclusion for Financing for Manufactured Homes
As we learned, it’s a lot easier to obtain chattel financing for manufactured homes but there are far more protections and better terms if a homebuyer transfers the home into real property.
In order to help our readers prepare for a chattel loan or a traditional FHA or conventional loan, we’ve put together 2 finance planners that can help you understand your expenses better. Just click to be taken to Slideprint the PDFs out.
Have you transferred your home into real property? We’d love to hear about your process in the comments below.
As always, thank you for reading Mobile Home Living!
Esther Sullivan, the author of Manufactured Insecurity, calls tenants of mobile home parks ‘halfway homeowners’ and unfortunately she’s not wrong. Mobile homeowners living in their own home but renting the land under it are the least protected housing group in America. They can be precariously close to losing their homes, even with it being paid off, at any time.
We need to change that. We need to do something about these mobile home park injustices.
Parks can be a great place to live but park owners can also increase rent on you without much notice and even close with little notice, forcing you to have to move your home in just a few days.
Park closures are even more of a fiasco if your mobile home is older. For example, let’s say your mobile home has been in the same park for 30 years. You receive a letter from the park that they will close in 60 days (the average time frame most states give park owners).
You start calling around and find another park that will take your home half an hour away. If you max out all your credit cards and get a small personal loan from your bank you may have just enough to get your home transported and set up in the new park. You start calling movers and one finally comes out to inspect the home but they tell you the home is too old and non-transportable. The 30-year-old mobile home could lose structural integrity or worse, collapse if you try to move it. You call another mover and hear the exact same thing.
What do you do next?
At this point, since you can’t move your home of 30 years you can’t sell it to anyone. That means your only choice is to abandon the home to the park and hope the little money you have saved and whatever the park may offer for relocation will be enough to find another home somewhere.
One park in Florida….
A Florida mobile home park proves just how low park owners are willing to go to make a dollar during park closures. The manager knew long before the elderly tenants that the park was closing and secretly paid off the movers and transporters in the area to tell the tenants that their homes were too old to move. With no other options, several tenants surrendered their homes to the park. Of course, the manager acted like it was a huge inconvenience and was going to be expensive to demolish the homes and haul them away.
But there was no demolition. The manager sold the vintage mobile homes for a couple thousand each to a used mobile home dealer. The dealer placed the homes in a park an hour away and sold them on a rent-to-own contract to families desperate for housing and willing to pay extremely high interest for a chance to be halfway homeowners themselves. One of the guys that surrendered his home to the park has been homeless and sleeping on the streets.
Mobile Homes provide the largest source of unsubsidized affordable housing in the United States (CFED 2016). The ubiquity of the mobile home park in American landscape and the insecurity of life for residents living there begs a fundamental questions: How have we allowed one of the country’s largest sources for affordable housing to also be one of the most risky? – Esther Sullivan, Manufactured Insecurity
In the last 3 months alone two of our readers have been forced out of their parks. One because the rent increased 40% as soon as new owners bought it and the other because the park was sold for redevelopment.
40% Rent Increase: Steven’s Story
Rumors that the park owners were selling the park started months beforehand.
Steven moved his 1993 model single wide into a large park in the heart of a bustling North Carolina town over 22 years ago. This park has at least 150-foot lots and neatly-kept homes that all face the road. Rent had raised a bit every few years and by January 2018 he was paying $370 a month, a high rate for the area since there were no playgrounds or pools or clubhouses. He kept looking at the bright side: it was a quiet park in a great location.
A few weeks after the rumors first started the current park owners sent out letters. Dated March 4, the letter promised that no rents would be raised until January 1, 2020, and went on to promise that when the rent did increase in January it would just be a few dollars.
54 days later, Steven received another notice from the new park owners. In 30 days, lot rent would be raised to $570 per month. That’s a $200 a month increase in less than 3 months.
Fortunately, Steven has bought another pre-owned single wide and moved it to a new park and will be selling the home in the old park.
There had been no offer for the tenants to pull together and buy the park as many believe should happen before any mobile home park is sold. Only 19 states have laws that incentivize park owners to offer the residents first dibs on parks.
We have a reader in her ’80s that has seen her lot rents go from $450 a month to over $1100 in 7 short years. The park’s pool was closed two summers ago. No new amenities have been added and the park has gotten run down by poor management.
I could go on and on about families that have been victimized by parks. It’s time to stop these stories. We have to do something about these mobile home park injustices.
Most of us live in mobile homes because we are priced out of the stick-built home market. We could afford a mobile home but not land and I suppose that does make us halfway homeowners.
Private equity firms are buying up parks at a rate never seen before and there’s a reason for this: poverty is big business and mobile home parks are big profit.
Mobile home parks are profitable because there are so many families struggling while income inequality and debt ratios are at their highest in history. There will always be a waiting list for tenants in a park because buying a used mobile home is far easier than buying a site-built home.
Families that have owned their parks for decades are retiring and selling. Private equity firms are buying them up and almost instantly increasing rent, some even double the rent and there isn’t a lot the tenants can do.
More than 20% of Americans make less than $20,000 a year which means 20% of Americans do not have significant savings if any at all. Esther Sullivan says it best, “In times of heightened income equality and shrinking social supports, poverty is touted as an ever-growing asset class and entire industries have arisen to capitalize on a growing population of low-income residents.”
So what can a tenant do when a new park owner suddenly doubles the rent? Nothing. Their choices are either to pay the rent or move out and most don’t have the money or the means to do that.
In times of heightened income equality and shrinking social supports, poverty is touted as an ever-growing asset class and entire industries have arisen to capitalize on a growing population of low-income residents.”
-Esther Sullivan
We Must Rise Together
Even with 17 million people living in mobile and manufactured homes in the US, we aren’t organized enough to protect ourselves. We need to change that.
Unfortunately, mobile homeowners are a fringe group and we haven’t effectively organized on a national level. If we can do that, we may be able to salvage what’s left of our parks.
We Need to….
To stop these unfair park practices we need to do three things: change ourselves, get out lawmakers on our side, and get the industry to realize there is a problem and actually help us for a change.
Changing Ourselves
First, we need to change ourselves. We are so used to being treated like trash and second-class citizens that we rarely blink an eye when we hear about these unfair park practices.
There are many state associations for mobile homeowners and even a couple of national associations but perhaps we need to look into organizing on a more national level. We need to stop sitting down. We must stand up and be heard and the only way to do that is to pull together.
Get Lawmakers on Our Side
It’s apparent that our local politicians are failing us and they have been for decades but if we can start rallying together to get our lawmakers to protect us we have a chance to change things.
Mobile homeowners are known for not paying their ‘fair share’ of property taxes which means our lawmakers aren’t paying attention to us. If we pull together and use collected funds to hire lobbyists like the park owners do maybe we can even the playing field a bit.
The manufactured housing industry has failed us most of all. MHI is a large lobbying group that represents builders and dealers across the nation. They are supposed to be advocates of everything encompassing manufactured housing and have an annual budget of millions of dollars and direct connections with HUD and other housing agencies. Yet, you’ll rarely hear about them doing anything to help the people that buy their products.
Their current focus is on Dodd-Frank financing restrictions on manufactured homes. Honestly, I’m not knowledgeable enough to have an opinion on that but I think if MHI (or just the builders and dealers) would turn a bit of their attention to the injustices that are happening in the parks they could redeem their poor reputations and that could be a big win for them and us. Let’s be honest, the industry isn’t known to support the people that buy their product.
Whatever It Takes, We Need to Stop These Mobile Home Park Injustices
These mobile home park injustices have to stop and the only way we can do it is by rising up as one and demanding better protections from our lawmakers and get help from the industry.
I don’t have answers to any of this. Heck, I just found out there was a national mobile homeowners association (but perhaps that says more about them than it does me since I’ve been blogging about mobile homes for over 8 years).
Don’t get me wrong, I believe all businesses should be free to make a profit but I also understand that affordable housing is disappearing in this nation and something needs to be done. There has to be a happy medium.
It won’t be easy…..
Do you know of a good mobile home association or have an idea to help us? I’d love to hear from you!
As always, thank you for reading Mobile Home Living!
Living in a manufactured home has many great benefits. Yet, like any home, we need to take the steps to secure our home and its belongings. When most people think of security systems they think of a fairly expensive system with monitoring but you don’t have to go through a lot of money to secure your home. Mobile home security can be affordable and easy.
The typical house burglar is a male teen in your neighborhood—not a professional. 60 seconds is the most burglars are willing to spend breaking into your home and an average of 8 to 12 minutes is all burglars spend in your home. Hindering them any way you can is your best bet. There’s plenty of affordable steps you can take to protect your home. Here’s just a few:
Deadbolts
As the name implies, deadbolts reinforce your doors. The harder you make it for a burglar to get the better off you’ll be.
Door and Window Jammers
Door and window jammers are much like deadbolts, they prohibit the window or door from opening.
Fake Home Security System
You can purchase the fake cameras for less than $10.00 and you can buy the signs for half that. If you make it look like your home is monitored, the burglars will pass right by and go to a target that doesn’t look protected.Homes without security systems are about 3 times more likely to be broken into so make it look like you have one.
Get an Affordable Safe
Making use of a home safe for a mobile or manufactured home is a smart investment. For a small cost, you have complete protection from burglary, fire, and flooding. They don’t have to be huge but the larger they are the more you can put in there!
Make It Look Like You’re Home
It’s a simple technique that works. Use timers on your lights, have a neighbor park their car in your driveway and if you are going out of town, have a friend pick up your mail and newspapers.
Neighborhood Watches Work
If you live in a mobile home community this should be your first move. Get as many neighbors as you can to join a neighborhood watch. The more eyes, the better for the whole community.
These suggestions will get you started. Of course, you can pay for a high-security system but if you use several different lower cost security techniques, your wallet won’t suffer as much.
As always, thank you for reading Mobile Home Living!
