Manufactured Housing - National Mortgage Professional Magazine

Transcription

THE FUNDAMENTALS OF
MANUFACTURED LENDING
© COPYRIGHT 2016 AMERICAN FINANCIAL RESOURCES, INC. ALL RIGHTS RESERVED
Last Revised: 03/09/16
DISCLAIMER
These materials are intended for informational use only. This is
neither legal advice nor a substitute for Agency Guidelines. Please
do not reproduce, display, or distribute without the express written
permission of AFR. This information is subject to change in AFR’s
sole discretion. Updated AFR guidelines may be accessed on AFR’s
website, www.afrwholesale.com. All rights reserved ©. The AFR
underwriter has the right to decline or suspend a file at their sole
discretion for any reason allowed by law. AFR is an equal housing
lender. NMLS 2826. American Financial Resources, Inc., 9 Sylvan
Way, Parsippany, NJ, 07054.
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MANUFACTURED HOUSING
PROGRAM OVERVIEW
A Manufactured home is a complete dwelling
designed for year-round living and substantially
constructed in a factory. It conforms with a National
Building Code developed in 1976 by the U.S.
Department of Housing and Urban Development
(HUD)
© COPYRIGHT 2016 AMERICAN FINANCIAL RESOURCES, INC.
ALL RIGHTS RESERVED
AVAILABLE PROGRAMS
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FHA 203(b)
FHA 203(b) Repair Escrows
FHA Standard 203(k) and Limited 203(k)
FHA Good Neighbor Next Door (GNND)
FHA Streamline Refinance
FHA $100 Down Program
FHA One-Time Close (OTC) – TPO, WS, and WD ONLY
VA Home Loans
VA IRRRL
VA One-Time Close (OTC) – TPO, WS and WD ONLY
USDA Purchase – New manufactured homes ONLY
(refer to RD Regulations and Guidelines)
• Fannie Mae and Freddie Mac Fully Amortizing Fixed
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PROPERTY ELIGIBILITY REQUIREMENTS
ELIGIBLE
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Constructed after June 15, 1976
Classified as real estate
Built and remain on a permanent chassis
Designed to be used as a dwelling with a permanent
foundation (foundation systems must follow FHA guidelines)
Built with a finished grade elevation at or above the flood
elevation frequency
Situated in fee simple, on land owned by the borrower
Not previously installed or occupied at any other site or
location
Permanently affixed to each transportable section
evidencing compliance with the HUD Codes
INELIGIBLE
• Singlewide manufactured housing is not permitted for
Conventional, FHA, and VA One-Time Close (OTC)
transactions
• Manufactured homes in a:
• Leasehold estate
• Park not held in fee simple ownership (“trailer park”
setting)
• Condominium project
• Manufactured home that has been moved or traded
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FHA PROPERTY ELIGIBILITY REQUIREMENTS
FHA defines a MANUFACTURED HOME as a structure that is transportable in one or more sections, and is designed and
constructed to the Federal Manufactured Construction and Safety Standards and is so labeled. All MANUFACTURED HOME units
and land must be classified as real estate to be eligible for Title II FHA Insurance.
FHA REQUIREMENTS
• Greater than 400 square feet
FHA INELIGIBLE
• A Singlewide unit is not permitted for the FHA One-Time
Close (OTC) loan program
• FHA Connection, Appraisal Logging Screen, must contain the
Manufactured Housing Indicator
• Singlewide, Doublewide, and Triplewide units permitted
• FHA Connection, Case Number Assignment Screen must
contain the appropriate two-digit Program ID Code
• 77 - For manufactured housing loans not processed
as construction-to-permanent loans (OTC)
• 36 - For manufactured housing loans processed as
construction-to-permanent loans (OTC)
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VA PROPERTY ELIGIBILITY REQUIREMENTS
VA defines a MANUFACTURED HOME as a structure that is transportable in one or more sections and is designed and
constructed to the Federal Manufactured Construction and Safety Standards and is so labeled.
VA ELIGIBLE
• Manufactured homes must be, or will be prior to closing,
permanently affixed to the foundation and taxed as real
property
VA INELIGIBLE
• A Singlewide unit is not permitted for the VA One-Time
Close loan (OTC) program
• Manufactured Housing in a leasehold estate, in a “park”
(“trailer park” setting) not held in fee simple ownership or
in a condominium project
• The borrower must occupy the property as his/her principal
residence
• Follow FHA Manufactured Housing Guidelines
• Proposed and properties under construction
• Manufactured homes that have been moved or traded are
not permitted
• Properties located in a Coastal Barrier Resources System
(CBRS) area, as delineated on a CBRS map, are not eligible
as security for a VA-guaranteed loan
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USDA PROPERTY ELIGIBILITY REQUIREMENTS
USDA defines a MANUFACTURED HOME as any dwelling unit constructed partially off-site and then transported to a site to be
completed and attached to a permanent foundation.
USDA ELIGIBLE
• Same requirements as FHA guidelines
USDA INELIGIBLE
• Manufactured homes with a manufactured date exceeding
12 months of the purchase agreement contract
• Property must be located in an eligible rural area
• Cash-out Refinances
• Manufactured home must be less than 12 months old, never
occupied and must include the site. The date of the
purchase agreement must be within one year of the
manufactured date displayed on the plate attached to the
unit
• Mortgage Loan must cover both the unit and site
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FANNIE MAE PROPERTY ELIGIBILITY REQUIREMENTS
Fannie Mae defines a MANUFACTURED HOME as any dwelling unit built on a permanent chassis and attached to a permanent
foundation system.
FNMA ELIGIBLE
• The manufactured home must be at least 12 feet wide and
have a minimum of 600 square feet of gross living area
• Manufactured homes must be a one-unit dwelling that is
legally classified as real property
• Doublewide and Triplewide units permitted
• The manufactured home must be permanently connected to
a septic tank or sewage system, and to other utilities in
accordance with local and state requirements
FNMA INELIGIBLE
• Singlewide units are not permitted
• Manufactured Housing units in a condominium project are
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not permitted
Trade equity is not permitted
Traded units are not permitted
Investment properties
Units that have been moved from its original location
Units in a park (AFR overlay)
Units located on leasehold estates
Properties that are not suitable for year-round occupancy
regardless of location
• The borrower must own the land on which the
manufactured home is situated in fee simple
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FANNIE MAE AND AFR PROGRAM DEFINITIONS
Fannie Mae defines a MANUFACTURED HOME as any dwelling unit built on a permanent chassis and attached to a permanent
foundation system.
• To be eligible for a cash-out refinance, the borrower must
have owned both the Manufactured Home and land for 12
months or more prior to the application date. The value for
a cash-out refinance Mortgage is based on the current
appraised value of the Manufactured Home and land
• For a cash-out refinance transaction secured by a Primary
Residence, the maximum loan term is 20 years, for
Mortgages with LTV/TLTV/HTLTV ratios less than or equal to
65%
• AFR does not permit any other risk classification other than
an Approve/Eligible
• DU must reflect the property type as manufactured home
• Singlewide units are not permitted
• Principal residences and second home dwellings only
NOTE: Investment properties not permitted
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FREDDIE MAC PROPERTY ELIGIBILITY REQUIREMENTS
Freddie Mac defines a MANUFACTURED HOME as any dwelling unit built on a permanent chassis and attached to a permanent
foundation system.
FHLMC ELIGIBLE
FHLMC INELIGIBLE
• Built on or after June 15, 1976
• Manufactured homes located on a leasehold estate
• Must be built on a permanent chassis
• Manufactured housing investment properties
• Doublewide and Triplewide units permitted
• Manufactured homes must be a one-unit dwelling that is
legally classified as real property
• The anchoring system must comply with the HUD codes
• The permanent foundation must be designed in accordance
with the manufacturer’s instructions or by a licensed
professional engineer and meet all local, state, and federal
codes
• The manufactured home must be at least 12 feet wide and
• A manufactured home that was moved from its original site
and was previously occupied or installed on a permanent
foundation is not permitted
• A mortgage with proceeds that are used to pay the
outstanding balance under a land contract or contract for
deed
• Single width units are not permitted
• Trade Equity not permitted
have a minimum of 600 square feet of gross living area
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FREDDIE MAC AND AFR PROGRAM DEFINITIONS
• For a new manufactured home, whether it is affixed to a
permanent foundation prior to or after the application date,
the underwriter (UW) must obtain a copy of the
manufacturer’s invoice and Manufactured Home Purchase
Agreement
• To be eligible for a cash-out refinance, the borrower must
have owned both the manufactured home and land for 12
months or more prior to the application date. The value for
a cash-out refinance mortgage is based on the current
appraised value of the manufactured home and land
• For a cash-out refinance transaction secured by a primary
residence, the maximum loan term is 20 years for mortgages
with LTV/TLTV/HTLTV ratios less than or equal to 65%
• HVE’s are not permitted on manufactured housing. A 1004C
and 1004 MC is required
• Principal residences and second home dwellings only;
investment properties NOT permitted
• AFR does not permit manual underwrites
• The ALTA Form 7 endorsement does not ensure the
manufactured home has been properly converted to real
property. If the state has statutory, regulatory, or formal
administrative process for surrendering and canceling a
certificate of title, the UW/Lender is responsible for
ensuring that all steps necessary to convert the
manufactured home to real property have been completed
and documentation evidencing the conversion is in the
mortgage file
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APPRAISAL REQUIREMENTS AND STANDARDS
REQUIRED
• Form 1004C appraisal form must show evidence of both the
HUD Data Plate/Compliance Certificate and the HUD
Certification Label
• The HUD Certification Label, sometimes referred to as a
HUD “seal” or “tag,” is a metal plate that is affixed to the
exterior of each transportable section of the manufactured
home
• The HUD Certification Number appears on each HUD
Certification Label and evidences compliance with the
Federal Manufactured Home Construction and Safety
Standards
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HUD DATA PLATE/CERTIFICATION LABEL REQUIREMENTS
What are the requirements for FHA, VA, and USDA?
REQUIRED
• If the HUD Certification Label has been removed,
compliance may be evidenced using the HUD Data Plate
located near the main electrical panel or in another readily
accessible and visible location
• For a manufactured home that has had the HUD tags
removed and/or the appraisal does not reflect the photos, a
HUD Label Verification Letter must be ordered through the
Institute for Building Technology and Safety a/k/a IBTS
(www.ibts.org)
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HUD DATA PLATE/CERTIFICATION LABEL REQUIREMENTS
What are the requirements for Fannie Mae and Freddie Mac?
FNMA REQUIRED
• Presence of both a HUD Data Plate and the HUD
Certification Label. If the original or alternative
documentation cannot be obtained for both the Data
Plate/Compliance Certificate and the HUD Certification
Label, the loan is not eligible for delivery to Fannie Mae
• The Manufactured Home Appraisal Report (Form 1004C)
must show evidence of both the HUD Data
Plate/Compliance Certificate and the HUD Certification
Label
• As an alternative to the original HUD Certification Label, the
lender may be able to obtain a verification letter from the
Institute for Building Technology and Safety (IBTS)
FHLMC REQUIRED
• Both the HUD Certification Label and HUD Data Plate must
be present and legible
• When either the HUD Certification Label or the HUD Data
Plate is not present or not legible, Freddie Mac will accept
the following as evidence of compliance:
• HUD Certification Label: A verification letter from
the Institute for Building Technology and Safety
(IBTS)
• HUD Data Plate: A copy of the Data Plate or
substitute performance verification certificate from
the IBTS, or a copy of the Data Plate from the InPlant Primary Inspection Agency (IPIA) or
manufacturer
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ENGINEER CERTIFICATIONS
What is an Engineer’s Certification on Foundation Compliance?
• A professional structural engineer must certify with a seal
stamped letter that the foundation of a manufactured home
meets HUD guidelines specified in “The Permanent
Foundation Guidelines for Manufactured Homes (PFGMH)”
September 1996
• If the foundation does not meet such requirements,
foundation upgrades are typically recommended.
Recommendations include approved engineered foundation
systems that can be retrofitted in combination with the
existing structural components of a manufactured home
• Manufactured Tie-Downs can provide both the necessary
retrofits and/or can assist in the engineering certification
process
NOTE: The cost of an engineer’s certification must be properly
disclosed to the borrower
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FLOOD INSURANCE AND ELEVATION CERTIFICATE REQUIREMENTS
An Elevation Certificate is required on any property that is in a flood zone.
FHA REQUIREMENTS
• If any portion of the property improvements (the dwelling
and related structures/equipment essential to the value of
the property and subject to flood damage) is located within
a SFHA, the property is not eligible for FHA mortgage
insurance unless:
A final Letter of Map Amendment (LOMA) or a final
Letter of Map Revision (LOMR) that removes the
property from the SFHA is obtained from FEMA
FNMA/FHLMC REQUIREMENTS
• If a subject property is located in a SFHA (Zones A or V) and
the borrower has obtained or will be obtaining a flood
insurance policy with adequate coverage, an elevation
certificate is not required
NOTE: The loan must qualify with the flood insurance
premium included in the DTI. Flood insurance must always be
escrowed, regardless of an escrow waiver for taxes and
homeowner’s insurance
OR
The lender obtains a FEMA National Flood Insurance
Program Elevation Certificate (FEMA Form 81-31), if
the property is not removed from the SFHA by the
LOMA or LOMR
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EXAMPLE OF ELEVATION CERTIFICATES
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EXAMPLE OF ELEVATION CERTIFICATES
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SUMMARY
• AVAILABLE PROGRAMS
• PROPERTY ELIGIBILITY REQUIREMENTS
• APPRAISAL REQUIREMENTS
• HUD DATA PLATE / CERTIFICATION LABEL
• ENGINEER CERTIFICATIONS
• FLOOD INSURANCE HOUSING
• ELEVATION CERTIFICATION REQUIREMENTS
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ABOUT US
AMERICAN FINANCIAL RESOURCES, INC.
American Financial Resources, Inc. (AFR) www.afrwholesale.com, is a
national residential mortgage lender dedicated to helping
homeowners, home buyers, and mortgage professionals achieve
their financing goals by delivering innovative mortgage solutions and
an unparalleled customer experience.
Based in Parsippany, NJ and established in 1997, we are a Ginnie
Mae, Fannie Mae and Freddie Mac Seller/Servicer, FHA Mortgagee,
USDA National Lender and VA Automatic Lender. We provide
Wholesale and Correspondent mortgage solutions by offering an
extensive product catalog with competitive pricing, unique
partnership opportunities, and flexible business relationships.
We strive to exceed the expectations of our lending partners and
nurture healthy, profitable relationships, ultimately providing a
simplified mortgage process with the highest levels of customer
service.
COMPANY HIGHLIGHTS
• FULL SERVICE MORTGAGE LENDER NATIONWIDE
• SERVICING WHOLESALE AND CORRESPONDENT CHANNELS
• DIVERSE DELIVERY OPTIONS INCLUDING FHA, VA, USDA,
FANNIE MAE AND FREDDIE MAC
• RANKED #1 IN 203(k) LENDING FOR SPONSORED
ORIGINATIONS*
• ONE OF THE NATION’S LEADING RENOVATION AND
MANUFACTURED HOME LENDERS
• DEDICATED SALES AND OPERATIONS SUPPORT
*Neighborhood Watch, US Department of Housing and Urban
Development, January 31, 2016
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CONNECT WITH US
AMERICAN FINANCIAL RESOURCES, INC.
If you are a mortgage professional new to American Financial Resources, Inc. Wholesale Division (AFR Wholesale), we welcome the
opportunity to discuss our programs with you. For our current Lending Partners, we want to hear from you. Please contact us directly with
your comments, questions, and feedback.
VISIT US
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THE FULL DEPARTMENT LIST
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Photography by:
[lindasj2] © 123RF.com
[Stanislav Popov] © 123RF.com
23
THANK YOU
AFRWHOLESALE.COM

Manufactured Housing - National Mortgage Professional Magazine

Transcription

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