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Will American Family Funding lend on modular homes

Will American Family Funding lend on modular homes
August 5, 2014 wpengine

Question: Will American Family Funding lend on modular homes?  What about site built or manufactured homes?

Answer: Yes American Family Funding will lend on a modular homes and site built homes, but currently NOT manufactured homes.  It is important to understand the differences between them.

What Are Modular Homes?

  • Modular homes are built in sections at a factory.
  • Modular homes are built to conform to all state, local or regional building codes at their destinations.
  • Sections are transported to the building site on truck beds, and then joined together by local contractors.
  • Local building inspectors check to make sure a modular home’s structure meets requirements and that all finish work is done properly.
  • Modular homes are sometimes less expensive per square foot than site built houses.
  • A well-built modular home should have the same longevity as its site-built counterpart, increasing in value over time 

What Are Site Built Homes?

  • They are constructed entirely at the building site.
  • They conform to all state, local or regional codes where the house is located.
  • Often called ‘stick-built’ houses.
  • A well-built, cared for site-built home generally increases in value over time, although its location plays a key role in value 

What Are Manufactured Homes?

  • Formerly referred to as mobile homes or trailers, but with many more style options than in the past.
  • Manufactured houses are built in a factory.
  • They conform to a Federal building code, called the HUD code, rather than to building codes at their destinations.
  • Manufactured homes are built on a non-removable steel chassis.
  • Sections are transported to the building site on their own wheels.
  • Multi-part manufactured units are joined at their destination.
  • Segments are not always placed on a permanent foundation, making them more difficult to re-finance.
  • Building inspectors check the work done locally (electric hook up, etc.) but are not required to approve the structure.
  • Manufactured housing is generally less expensive than site built and modular homes.
  • Manufactured homes sometimes decrease in value over time.