Forms

Modular Programs
• Modular Program
• One Close

Land/Home’s Program Guidelines:

• Manufactured Homes that are built in conformance to modular home standards (DCA/BOCA) and that are permanently affixed either “on-frame” or “off-frame” to a permanent foundation system will be covered under this program.
• The over riding criteria is that the modular home take on the characteristics of a site-built home and be compatible with site-built homes in the immediate area with respect to appearance, amenities, aesthetics and size. The goal is to maintain the aesthetic quality of the housing development so that the modular home would appreciate in value similarly to a site-built home in the same community. The home cannot resemble a “HUD” built manufactured home such that it is easily recognized as such.
• LHFS will employ a quality control standard for granting approval for a project to use the “site-built” underwriting and appraisal criteria as opposed to the “HUD” home criteria.
  • LHFS will review the specification sheet and/or factory invoice for the home to ensure it will take on the appearance of a “site-built” rather than HUD home. We will also review manufacturer floor plan brochures and/or photographs of a completed version of the same specific product line to ascertain its conformity with “site-built” housing.
  • We will discuss LHFS requirements with the Retailer to ensure there is clear understanding about what the final project must look like in order to take advantage of the “site-built” pricing, appraisal and underwriting standards.
  • We will continue to approve and fund “HUD” looking modular homes using our standard MH pricing and appraisal standards if “site-built” criteria are not met.
• Standard “site-built” underwriting and appraisal requirements will apply:
  • Standard retail rates for site-built homes will be available.
  • All loan products available for site-built homes, including Stated Income and No Ratio loan programs will be available.
  • Site-built or modular comparable sales can be used interchangeably to validate collateral value. Normal conforming or government loan appraisal requirements must be adhered to.
  • Loan approval will be based on “site-built” home criteria.
• Installation of the home must meet the more stringent home placement criteria established by appropriate regulatory agencies and LHFS.
• The following specific construction and installation criteria must be met:
  • An off-frame modular home must be permanently affixed to the property on a stem-wall foundation (or equivalent), with footers and tie beams, that complies with State and County installation requirements. An on-frame modular must be permanently affixed to the property in compliance with State and County installation requirements.
  • The roof pitch must meet County and local requirements, must resemble site-built homes in the area, and have a minimum “4-12” roof pitch regardless of whether or not the County stipulates a specific minimum; or resemble the predominant single family residence roof type consistent with the neighborhood in the local area.
  • The home must have an overhang that meets the County requirement, or in the absence of a requirement, be a minimum of 16”; or resemble the predominant single family residence style consistent with the neighborhood in the local area.
  • The home must have some distinctive “elevation” or other construction features that set it apart from a “box-like” HUD home. LHFS will review specifications, invoices, and/or photos, as needed, to ensure compliance.
  • The siding used on the home must be site-built house quality and be in conformance with the standard siding prevalent in the immediate area.
  • A minimum landscaping allowance should be considered for every deal to ensure the home takes on an aesthetically appealing look with respect to shrubs, plants, etc., as appropriate to the predominant style of homes in the area. Ground covering (sod, etc.) must be compatible with homes in the immediate area.
  • Skirting (if necessary) must be of high quality materials, be professionally installed and be comparable with the “look” of homes in the immediate area. Metal skirting is not acceptable.
  • The home must have a garage or similar structure, be compatible with the design and construction of the modular home, and comply with the “look” of homes in the immediate area.
  • All improvements and utility services must meet County code requirements and be compatible with similar features of homes in the immediate area.

Program Advantages:

• The strong potential for a better grade of borrower because of lower rates, better loan terms and ease of obtaining appraisals.
• A higher property option by zoning officials.
• Enhanced neighborhood values after placement of the modular home.
• A sales tax advantage for the borrower.
• Acceptable product for many more site-built communities, when installed per our requirements.
• A higher grade of construction standards. Easier and better appraisals that will more accurately reflect true market values.