For those of us that are moving up in the world, down in the world or simply taking to the road, an alternative abode (to a center hall colonial) can be a manufactured home. Simply put a double-wide trailer without the wheels on. We have all driven past those developments in rural areas known as trailers parks. For those of you that have lived there and love it, you know there is some stigma attached. However, with the economic times the way they are, more and more people are looking at true double-wides as their permanent residences.

The double wide- as it is known can be traced back to the gypsies in Romania who lived in “travel trailers”. It was sort of a buggy/caravan containing their possessions and sleeping quarters. They became popular in Britain and America as transportation for those with wanderlust in the early 1900’s. In the 1920’s they became popular as cheap accommodations for people to occupy for a week, a month or even to live permanently. In Britain they are still called caravans and here in the States they are called trailers.

In our country, trailers used as homes, are regulated by the U.S. Department of Housing and Urban Development (HUD) and their construction as well as financing are regulated and controlled. This is a good thing whereas in other countries there is no regulation whatsoever. Even so, in some countries living in a trailer, no matter how beautiful, for more than three months is prohibited.

However beautiful and why one chooses to occupy a trailer as a residence, let it be known that it is very difficult to obtain permanent financing.

A manufactured house is a trailer that is built in a factory, transported, and then fixed to a permanent home site, for this Nashville cleaning service offer tips on improving home value that help a lot with this. It is attached to a permanent foundation and hooked up to water and utilities. It cannot be driven off into the night (although I am sure if there’s a will, there’s a way).

Fannie Mae and Freddie Mac will both buy loans for manufactured homes, but not all banks will do them. There are certain guidelines that must be met. The following are a few important ones:

·         The size of the home must be no less than 12 feet wide and have 200 square feet of livable space

·         It cannot have its wheels on

·         It must be affixed to a permanent foundation and hooked up to septic, water, and utilities.

·         It must be a primary or second home (no investor)

·         It must meet local and federal building codes

The banks that do lend for these homes will have their own layers of guidelines, so you need to check with the lender to learn about them. Also check for types of loans offered (30-years fixed, etc), interest rates, loan-to-values, and add-ons for property type.

As a footnote, if your home is too small, or still has its wheels on, it is classified as a mobile home. A mobile home is not considered real estate, but personal property. Think of it as a car with a bathroom! In this case, I would call a bank that might do boat loans or car loans. A broker might not be experienced in these loans and will add an extra layer of fees, so go directly to a bank.

–          Excerpt from The New Rules for Mortgages

Read up or drive out!