From Prefab Home To Real Property

Converting your prefab home to Real Property is the best way to go for several reasons.

• Insurance rates and financing rates will be more favorable. In order to determine the eligibility of the Manufactured Home transaction as real estate the land and home must represent a single real estate transaction and financing must be evidenced by a recorded mortgage or deed of trust. 

• Additionally, the mortgage amount cannot include financing of furniture, life, property or any other kind of insurance. The borrower must acknowledge that the unit be a fixture and a part of the real property securing the mortgage.

The type of real estate being either Fee Simple, such as on private property or in a Manufactured Home Subdivision, Planned Unit Development or etc.; or a Ground Lease that conforms to standard Real Estate Guidelines.

Appraisal Considerations

The foundation and type of foundation are key aspects that allow Manufactured Home to be classified as real estate.

Appraisers must comment about the foundation. In doing so, the Appraiser should be well informed about manufactured housing foundations and should comment if the foundation is typical to the area.

Also, the Home should have all wheels, axles and hitches removed and conform to Safety Standards mandated by June 1976 evidenced by appropriate HUD Certification Label permanently affixed to each transportable section of the home.