Posts Tagged ‘manufactured home’
The Truth About Financing in Condominium-Classifed Manufactured Home Parks
Just like all real estate, there is no doubt that the economic decline has impacted values in manufactured home communities However, condo parks have been harder hit than the broader community because financing for manufactured homes in condominium-classified parks completely disappeared for the last couple of years. Except for hard money loans, private financing or VA loans, money simply dried up. Investors shied away from any loan that was not FHA-insured which also included Reverse Mortgage or Home Equity Conversion Loans. And it’s a vicious cycle. Without loans, the sales market becomes stagnan and without sales, appraisers can’t find comparative values to provide a reasonable worth for your home
Fortunately, back in July Congress passed sweeping legislation that removed the condo exclusion, but it wasn’t until May that the Mortgagee Letters were released paving the way for financing opportunities.However, the hard work has just begun.Before a single loan can be originated, the park itself must receive approval from Housing and Urban Development.This is no small feat and even once all the documentation is presented to the local overseeing HUD agency, the wait time for approval is 6-8 weeks.