The Benefits of Mobile Home Park Living

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Over ten percent of Americans choose to live in manufactured homes, and most of those are in mobile home parks. Those who don’t know anything about mobile home living may be wondering what benefits are included in this lifestyle. Here is a brief list, and I’m leaving off many benefits to focus on the big ones.

Amenities are very common in mobile home parks, and they arewell used in the community. Most Mobile Home Parks have a pool and spa and a clubhouse and maybe some shuffleboard. They are upkept by a property management company that handles the cleaning, lawncare, security system, and other forms of maintenance. Since many mobile home parks have a large retired population, these amenities are well used and are a great way to meet your neighbors.

Mobile Home parks also have a great communal feel to them. It is a throwback to times when your neighbor watched out for your home when you were on vacation. People go for walks around the community, and they even stop to say hi and will have a conversation with you until it’s dark. The casual atmosphere makes mobile home communities a sanctuary from the hustle and bustle that American life has become.

Many people have a stigma of living in a mobile home, the phrase “trailer trash” comes to mind. I assure you that this is not the case in a mobile home community. The “trailer trash” stigma is from the country folks that live in a mobile home placed on an acre of land in rural areas. Mobile home living is as far away from that as possible. In fact, manufactured homes are beautifully crafted today, with vaulted ceilings, energy efficient add-ons, and cosmetic features for the inside and outside of the home. You may have been in a manufactured home recently and not even known it.

For these reasons, many Americans love their mobile home park lifestyles, and they would not live anywhere else.

Are Mobile Home Loans more Difficult than Real Property Loans?

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Mobile Home Loans

Many people are curious, or stumped, when it comes to the differences between loans for mobile homes and loans real property site built homes. A lot of lenders that finance condominiums and single family real property homes do not lend on mobile homes, and a lot of people do not understand why. Well, there are some big differences in the properties themselves, and these differences affect the types of loans that can be done on the homes.

Basically, when you are looking at getting a loan, you need to put down collateral for that loan. The collateral for your loan is going to be the main factor where there are differences between a Mobile Home and Manufactured Home Loan and traditional “stick built” home mortgages. Just like how getting a loan for your vehicle and getting a loan for your business are two different types of loans, so are loans for mobile homes and real property site built homes.

In the United States, a mobile home loan is also referred to as a “chattel mortgage”. Chattel mortgages are securitized transactions, governed by Article 9 of the Uniform Commercial Code. The lender on a chattel loan secures the loan with a mortgage over the chattel, or the Mobile Home. Because chattel is defined as personal property, movable or immovable, for example, a book, a coat, a pencil, growing corn, a lease, a mobile home is considered a piece of personal property that could, for all intents and purposes, be moved; often times mobile homes are considered as riskier collateral than a real property, site built home.

Traditional homes that are built on site and include real property are a bit different from chattel, or mobile home loans. A mortgage loan for this type of home is a loan secured by real property through the use of a Note, which is a document that evidences the existence of the loan. Real property mortgages can and should be additionally evidenced by a Deed of Trust document, which is recorded with the County Recorder. The Recorder is a county official that insures that instruments are recorded, giving public notice of such transactions. The Deed of Trust will be recorded with the County Recorder of the County where the real property is located. Because there is no real property ownership involved with a mobile home loan, a lender cannot record any documents against the title to a mobile home, to further secure the loan.

Mobile Home Mortgages are not recorded or secured in the same fashion as real estate, or real property loans. The title information for mobile and manufactured homes is maintained by agencies directed by The United States Department of Housing and Urban Development. In the State of California, The Department of Housing has “Registration and Titling” offices that are specifically assigned to maintaining the title information on Mobile and Manufactured Homes. The homeowner, or purchaser, of a mobile home shall be shown on the title as the registered owner, and the lender shall be shown as the Legal Owner to the mobile or manufactured Home. When a mobile or manufactured home is encumbered by a Legal Owner, the actual Certificate of Title to the mobile home is issued to the lender, or legal owner. The homeowner, or borrower, is issued a Registration Card, which evidences the homeowner´s Registered Ownership interest to the mobile home. With site-built, real property homes, the homeowner retains a Grant Deed to evidence their ownership in the home, and the lender maintains the Note and Deed of Trust to evidence their ownership interest in the real property home.

It´s helpful to understand these title and security differences, as they play a major role in determining the actual loan type, qualifying agents and the loan process itself. Manufactured Homes  and real property site built homes are not only built differently, but titled differently and mortgaged uniquely as well.

The True Origin of The Mobile Home

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Mobile Home Origins

So you think you know how Mobile homes came to be called such? Easy, Right? Because they can be moved from place to place, hence a home that is Mobile. Mobile Homes.

Well, this is actually a common misconception.

According to snopes dot com, “The origins of the mobile home are tied to the end of World War II. The rapid downsizing of the U.S. armed forces after the surrenders of Germany and Japan in 1945 brought back millions of servicemen (and servicewomen) to the United States from overseas in the mid-1940s, many of whom were coming of age and anxious to establish their independence, attend college, get married, and raise children. This demographic bulge, coupled with America’s burgeoning post-war recovery from the Great Depression and a wartime economy, created an unprecedented demand for housing — both for standard residential units and for quarters to accommodate the many servicepeople who were taking advantage of G.I. Bill benefits to complete their educations at colleges, universities, and other types of schools.

The widespread use of military-style prefabricated housing eased the severe housing shortgage temporarily, and the eventual creation of suburbs such as Levittown took care of much of the long term need, but neither of these solutions addressed a potentially lucrative marketing niche — people who were dissatisfied with living in barracks-like housing but didn’t want to (or couldn’t) wait years for the construction of affordable suburban housing. It was James and Laura Sweet, a couple from Prichard, Alabama, (a town just outside of Mobile) who came up with the concept that fulfilled that market niche.

James Sweet, a machine shop supervisor by trade, was reportedly finishing off his workday lunch one afternoon in January 1946 when a newspaper article about the post-war housing shortage caught his eye. What if, he thought, someone could manufacture a type of housing that could be put together cheaply and quickly at a central location, but was small and light enough to be transported to wherever the purchaser wished to locate it? Something like the prefabricated structures of the era, but much nicer and more home-like — a prefab housing unit divided into discrete rooms (rather than one large open space) with all the electrical and plumbing fixtures already in place. They could be built as one- or two-piece units, then loaded onto flatbed trucks and delivered wherever the purchaser desired.

Sweet’s wife, Laura, was a commercial artist who did illustrations for magazines, and she drew up a few simple floor plans according to her husband’s directions. James Sweet built a couple of prototype units in his off-work hours to prove his concept viable, and then, satisfied with the results, used the couple’s savings, mortgaged their home, and borrowed against his life insurance to establish Sweet Homes, a company dedicated to the manufacture and sale of prefabricated  homes.

National advertising was still something of a rarity in the 1950s, but as the new national highway system enabled the sale of prefabricated homes to spread outwards (mostly to the north and west) from the Alabama/Mississippi area, more and more consumers were exposed to the houses, liked them, and began clamoring for their own “Mobile homes.” Business boomed, more manufacturers entered the fray, and factories were established all over the U.S. to better serve local customers. Eventually whole communities of these types of homes were created all across the country, populated by homeowners who preferred them to more expensive and more closely-quartered suburbs full of site-built housing.

Over the years, however, as the generation who fought World War II aged and prefabricated homes became commonplace throughout the U.S., newer consumers were unaware that the appellation “Mobile home” was a geographic reference, a term coined in acknowledgement of the area in which the industry got its start. The name was more and more frequently rendered as a common compound noun (“mobile home”), leading many to mistakenly conclude that it referred to houses that were “mobile” — that is, movable from place to place. While “mobile homes” can indeed be transported, they are of course far from mobile — in the vast majority of cases they are never moved off the sites to which they are originally trucked. (Most “mobile homes,” once situated, are moved again only if their owners replace them with newer models, or if they have to be removed because the land on which they sit has been converted to other uses.)”

And now you know the true origin of the Mobile Home.

go to snopes dot com for further information and literary citations.

Mobile Home Loans in the Economic Recovery

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Mobile Home Loans in the Economic Recovery

In the current economic recession, it seems like the average American is able to afford less and less.

These unfortunate circumstances have placed affordable housing in quite high demand. It’s no surprise now that manufactured homes and mobile homes are paving the way when it comes to reasonably priced housing. With this increased demand, there will be more and more Americans living in factory built homes. As ownership of manufactured and mobile homes has increased, so has the demand for Mobile Home Loans.

At the introduction of manufactured and mobiles to the housing market, most of the average mortgage banks were uninteresed in offering Mobile Home Mortgages. Most mortgage banks lumped Mobile home loans in the same category with car or vehicle loans. Much like vehicles, manufactured and mobile homes were thought to quickly depreciate in value, unlike a traditional stick-built home or condo that typically sees equity gaining over time.

Due to the lack of equity appreciation, for many years it was improbable that a manufactured or mobile home refinance or equity loan would be made available to owners of factory built homes at all.
As time went on, home values skyrocketed faster than general income could keep up with. The depreciation of manufactured and mobile home owner’s equity started to slow down.  Eventually the equity losses  stopped altogether. Manufactured and mobile homes soon were actually increasing in equity, in part due to the increasingly superior quality and safety of manufactured and mobile housing, coupled with federal and state laws governing the factory-built process.  While mobile home owners invested in their homes and continued to maintain and improve them, they gained precious equity.

Today, rate-and-term mobile home refinance loans and cash-out equity loans have become readily available to eligible owners of manufactured or mobile homes. It has become reasonably easy to locate what was considered “non-traditional” and even undesirable financing for manufactured or mobile homes.

As the current real estate market begins to recover, the manufactured and mobile home market endures the same loss of value as the “stick-built” and condominium homes. In the midst of the recovery, manufactured and mobile homes still remain viable for financing at terrifically competitive interest rates. These loans should be eligible for rate-and-term refinancing in the not-too-distant future and perhaps even “cash-out” equity loans in the somewhat-near-future.
There was a time when a manufactured or mobile home loan was frowned upon as a mere “car loan”.
Those days have long passed as manufactured and Mobile Homes have emerged as the last affordable housing in America with competitive financing available to qualified buyers.

Mobile Home Loans – Quick Tips

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Are you thinking about refinancing your mobile home or getting a loan to purchase a mobile home or a manufactured home?
Make sure the lender you are working with is Qualified to lend in your state and that they have a good standing reputation.
Here are some Important questions to ask your lender:

What licenses do you have to lend in this state?
Are you a member of any Manufactured Housing Associations in the state?
How long have you been in business?
What state are you located in?
What state will my loan be processed in?
Are You Able to Lend your own Funds?
Are You Equipped to Service Loans In-House?

Can Mobile Home Owners Refinance “Upside Down” Loans?

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With the economic down-turn and the current home value decline, many mobile home owners are finding themselves stuck when it comes to refinance options. What options exist when there is no equity left in a mobile or manufactured home?

Lender’s use the term “upside down” when the value of a mobile home is less than what is currently owed on the mobile home mortgage.

Sadly, in this case, most homeowners will have trouble refinancing their loans with a conventional mobile home lender. A lender wants to ensure that if a homeowner defaults on their mortgage, the value of the home (if forced to foreclose) will exceed, or at least, meet the amount that is owed on the loan.

If a homeowner owes the bank more than the home is worth, waiting out this economic downturn is the only option. A homeowner will need to wait until home values go back up, while their principal balance on the mortgage goes down. Until the value of the home exceeds the amount owed, refinancing a mobile home loan or pulling cash out from the equity on the mobile home is not a viable option.

Fore more direct, honest answers like this, check out the California Mobile Home Finance website at http://www.camhf.com

Another One Bites the Dust

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According to a recent LA Times article, Green prefab architecture firm Michelle Kaufmann Designs is closing it’s doors.

“Kaufmann, who worked for Frank Gehry and Michael Graves early in her career, was a pioneer in the so-called modern prefab movement of recent years. She was also one of the first architects to make a persuasive case that prefab design, which reduces construction waste and damage to building sites, among other benefits, was in a number of ways synonymous with sustainability.”

“Kaufmann’s own efforts, she said, were undermined by the economy’s rise and its fall. During the last few years of the housing boom, as she was starting out, many factories were so busy making money with conventional prefab construction that they saw no reason to experiment with more innovative designs. As the economy has soured, many of those same factories have gone out of business entirely. And lenders, who during the boom looked for excuses to approve even the most exotic mortgages, have taken on the kind of conservatism that formerly marked prefab builders.”

Although lending on mobile homes, manufactured homes and pre fab homes has tightened up, financing is still easily available to qualified home buyers and home owners. Now more than ever, it’s important to have a trustworthy, licensed lender, with a great reputation, like CAMHF, on hand.

Is it Possible to Refinance my Mobilehome?

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sunset

Absolutely, you can.

Most lenders that specialize in Manufactured home & Mobile home finance treat manufactured and mobile homes similar to conventionally built homes and will consider lending to homeowners who already have equity in the home they own, or qualified buyers that are considering buying a manufactured home or a mobile home. You may be asking, “Why would I consider refinancing my home?” There are some great reasons why you might be interested in doing a refinance of your manufactured home; possibly lowering your current mortgage interest rate and monthly mortgage payment, paying off high interest rate credit cards and auto loans, paying for your children or grandchildren’s college tuition, or making home improvements to maintain the value of your home.

When you refinance your manufactured home you are esentially getting a new loan with better terms to pay off your current loan. If you are currently in a situation where you can afford your monthly payments, then refinancing your home with a lower interest rate may allow you to shorten the length of your loan, pay it off sooner, and easily make additional principal payments towards the principal balance of your loan from time to time, if you so desire. Financing for manufactured homes and mobile homes is available for mobile homes in space rent parks, parks where you own your own lot, co-op parks, and mobile homes or manufactured homes located on privately owned land.

Because these mobile homes are manufactured off site, they aren’t the same as a standard stick-built home. The laws and regulations concerning the financing for mobile homes and manufactured homes vary from state to state, so be sure that your lender or mortage broker is compliant with your state laws, and is licensed to loan funds to you. Knowledgeable lenders that have experience in Manufactured Home Loans and Mobile Home Loans will be able to answer your questions in regards to the laws and regulations in your state.  The costs associated with refinancing your home mortgage should be similar to the fees that you paid when you financed your home purchase.

Some lenders like California Manufactured Home Finance, offer a low, flat rate fee, if you are looking to refinance with the lowest fees possible. Most borrowers have the option to go ahead and pay the fee(s) up front, however you can also include the fees into the new loan amount and keep out of pocket expenses as low as possible. Just like a traditional home loan, borrowers can also “buy down” their interest rate. To do this, borrowers must be charged with “points”. Points are additional fees that are paid at the time of closing to the lender that is financing your new loan. Usually a point is considered one percent of the new loan amount.

The process of refinancing a manufactured home or a mobile home is essentially a similar process to refinancing a stick-buit home, however there are certainly some differences. It is very important for mobile home and manufactured home owners select a good lender that is experienced in mobile and manufacutred home loans that can guide you through the process easily.

“Did you Know?” Mobilehome Edition

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beautiful mobile home

Did you know… ?

if a manufactured home was built after September 1, 1958., alterations to the electrical, plumbing, or mechanical systems of a manufactured home require a permit and inspection from the Department of Housing and Community Development regardless of where the home is located.

Did you know… ?

a community park manager or management association must obtain permission from HCD or the local enforcement agency to move lot lines for individuals residing in the park, after obtaining a homeowner’s approval and meeting other requirements. See Title 25 California Code of Regulations section 1104(d) here.

Did you know… ?

the rules and regulations of a mobile home park must be given to the resident at the time of application for tenancy and with new leases/extensions. There is no requirement to post the park rules, however.

Did you know… ?

Mobile Home park management can require homeowners to correct violations of local and/or state regulations for the unit and accessory structures. Management generally cannot require a homeowner to make physical improvements to park-owned property or structures, including the lot.

See MRL sections 798.73.5 an 798.83 in the Civil Code for more information Here.

Did you know… ?

Contrary to popular belief, fixed rate financing IS available for mobile homes and manufactured homes built prior to June of 1976. Visit California Manufactured Home Finance’s website at  www.camhf.com for more information on financing a mobile home.

This concludes today’s Mobile home edition of  ”Did you know?”

Mobile Home Park Inspections Explained by The Department of Housing

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Every 5 to 7 years, California law requires that the California Department of Housing and Community Development maintain an health and safety hazard inspection on every mobile home or manufactured home community in California. The Department of Housing, or HCD, has released this informative video, explaining why these inspections are necessary.

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Mobile home and Manufactured home communities provide desireable lifestyles at affordable costs, however, the nature of such community style living requires that each homeowner be responsible for maintaing their home and their lot to ensure that the community remains free of any illegal health and safety hazards.

To ensure that each Mobile Home park remains free from these hazards,  legislation was put into place in 1991 that ensures every mobile home park in the State of California is inspected every 5 to 7 years.

In the course of their research, the Department of Housing realized that most of the violations exist because home owners and park operators simply do not realize that the violations are illegal and dangerous. However, the following examples of common violations are offenses that must be corrected to ensure the safety of the home owners and the general public:

Broken Windows

Missing Steps

Combustibles stored under homes

Blocked emergency exits

Another common fire safety violation is the construction of a combustible accessory structure, such as a shed. The easiest way to remedy this violation is to remove or relocate the structure.

Awnings and screens that are attached to homes sometimes are added by homeowners that don’t realize that the home was not manufactured to support additional weight. For this reason, adding an awning or screened in area to your home must be done with a construction permit.

Other common violations are missing handrails and guardrails along the steps and porches of manufactured homes. The law states that handrails must be present if there are more than two steps attached to the home. Guardrails must be present on porches that are 30 inches from the ground. While these handrail and guardrail requirements seem strict, statistically most injuries in manufactured home parks are caused by falls in and around one’s own home.

These are the typical, correctable violations that are most commonly seen in mobile home parks.

Lastly, when an inspector visits your park, you should know that the inspector is not allowed to enter your home without your permission, however, the inspector is required to enter your lot for the inspection. The inspector must inspect the condition of your lot, your utility hook uips and the exterior of your home.