Problem: Financing a "Relocated" MH

[William Morgan]

Hi all,

I recently rehabbed a Manufactured home (1996 vintage), put it on the market and have it in contract with an FHA buyer. It appraised well and no issues were discovered during escrow. The buyers received loan approval however the underwriter is asking us to provide its prior ownership history. It's not clear if it was simply traded between MH dealers and sold as new or if there was a previous owner #1 who set it up at location #1 and later resold it back to a dealer who then sold it to owner #2 who set it up at location #2. We are having to try to piece together and document its history before the underwriter will approve the loan.

At issue is FHA's rules for eligibility :

• Relocation [of Eligible Manufactured Homes] - To be eligible for FHA Title II insurance, the manufactured unit must not have been previously installed or occupied at any other site or location. Manufactured units may be moved only from the manufacturer’s or dealer’s lot to the site on which the unit will be insured. If a permanent foundation is to be constructed under an existing eligible unit, the unit may be jacked-up or under pinned in order to install a new foundation.

If the MH was sold and set up at a different location then it does not (i'm being told) qualify for FHA backed financing (Title II). It also would not qualify through a traditional lender either as they have similar requirements.

The MH is on land and on a permanent foundation. 

Does anyone else have experience with this?

How do I go about getting a buyer financed?