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If the mobile home is 1995 or newer, is secured to a foundation and is on owned land (not leased) a mortgage broker may have options for you. 

While there may be a varying difference in definition between these 3 types of houses depending on who you talk to (Realtor, Appraiser or Underwriter) there are a few basic guidelines from the lender standpoint.

Mobile and Manufactured = same thing.

Modular = regular house.

If the house is older than 1995 - it's a mobile, there was no such thing as 'modular' homes prior to 1995 (in the eyes of a lender) and this is due to the building codes which are determined by a CSA sticker number.  Prior to 1995 the building code used was technically an  RV code.. after that they were built to housing code.

If the house was double or triple wide - it's still a mobile..

It if's triple wide with an addition - it's still a mobile...

it's a mobile with an attached garage and a built in porch - it's still a mobile...

Calling the property 'mobile' has nothing to do with the hitch, wheels etc. It all comes down to the original classification of the home as determined by the CSA code.

There are some cases where someone has taken a mobile, put it on a foundation, completely renovated the interior and were able to pass it off as a regular bungalow but the distinction would need to be completely unnoticeable to an appraiser.

All Mobile homes need to be secured (tied down) and on pilings or a concrete foundation to be mortgage-able.

When a mobile home is on land that is included in the purchase, there are a few mortgage lender options that will look at these. Typically what a lender looks at in this instance is the 'remaining life expectancy' on the appraisal report and will give a maximum amortization of 5 years less than the remaining life expectancy (up to the maximum amortization). So for example, if the remaining life expectancy on the appraisal is 20 years, the maximum amortization on the mortgage will be 15 years. This is often a deal killer for older mobiles because typically the clients purchasing these can't afford the higher debt ratio which results from the shortened amortization period.

Sometimes, if the clients have a large enough down payment and a mobile that is not worth much at all, the lender will lend based on a raw land value and require the appropriate down payment on the land as if it was vacant with no home at all.

For mobile homes that are located on leased land in trailer parks etc. these mortgages need to be done directly at a bank or a Credit Union. Different parks have different rules about allowing property and lots within the park to be mortgaged or used as collateral and there is no title for the lender to secure the loan against. Most often you will find the bank does what is called a 'chattel' loan which is, in essence, the same way they would do a truck or RV loan.  Unfortunately, mortgage brokers cannot assist with these types of loans so you would need to refer to a bank/Credit Union for deals like this.

Some lenders will require that these types of purchases are insured (CMHC, Genworth, CG) regardless of how much down payment. Some lenders will only lend on 1995 or newer. Some want single wide's insured, while double wides not. There can be a few different variations on the requirements depending on the property and the lender.

They will often request the CSA sticker number to confirm the year and code it was built to as well.

There have been instances where Realtors will list as a 'modular' home instead of mobile to make the property more attractive for viewings or that they believe it will be more attractive to lenders. I can't speak to the viewings side, but I can say for the lenders side, the listing won't matter as they will go by the CSA number or what the appraiser says. This may hinder the buyers timing wise as an approval from a lender who does not finance mobiles thinking it is a modular may pull funding down the road.

Now all of this said, there are always exceptions on the grey line between what is a modular or mobile - especially if the property has been extensively renovated and no longer 'looks' like a mobile and certainly if the CSA sticker is no longer around. In these instances it would come down to an appraisers opinion.

Modular homes are mortgaged the same as any regular house and usually come with no extra requirements.


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