Well, If You're Tired of Waiting Around For Things To Happen Check Out What Just Might Happen In The Next RE Boom.

Tens of thousands perhaps hundreds of thousands of old Trailers and Mobile Homes will be removed from "Resident Owned" Mobile Home Parks in the next few years and brand new Manufactured Homes will be installed turning these once blighted ole "Trailer Parks"nto gentrified upwardly mobile "Manufactured Home Communities"

Before                                                                                     After

Above Left: Old Circa 50's & 60's 500sf 1+1 single wide trailers with asphalt driveway in aging and dilapidated trailer park. Right: Old trailers were removed and new 960sf 1/2 Manufactured home 1/2 site built second story results in 3 bdrm 2 bth home. Concrete driveway replaces old asphalt driveway. Thus far half of the homes in this development have been removed and replaced with new HUD approved homes. This park is currently going through the Condo conversion process. Hence, once completed it will be possible for these resident homeowners to obtain a land/home fully amortized 30yr loan.

This could be one of the sparks that ignites the next RE explosion and who would ever believe that it just might happen with “Manufactured Housing”?

Above Photos: Old trailers are demo'd and removed. In most cases you could just hook the old trailer up to a totter (transport truck) and haul it out on its own frame and running gear. However,  in many instances the chassis and running gear are no longer road worthy and it becomes necessary to break them down  to the ground on site, place them in a dumpster and haul them away.

FHA Financing Is The Only Widely Available Source For Forward &;; Reverse Mortgages For Affordable Single Family Manufactured Homes. In 2009 the marketplace for FHA loans for manufactured homes was significantly expanded when HUD changed the rules to allow FHA financing for home-owners residing in Condominium Developments.  Increasing numbers of home owners, including senior’s that are eligible for reverse mortgages, are seeking affordable manufactured homes. 

But in the current economy financing the purchase of a manufactured home is virtually impossible without FHA.   Compounding the problem, PRE-HUD manufactured homes (homes built prior to June 15, 1976) are not eligible for FHA mortgages.  Manufactured home owners trying to sell, seniors trying to secure reverse mortgages and buyers trying to purchase manufactured homes are all locked out when a PRE-HUD home is involved.

The only solution is to replace the ineligible home with a new HUD compliant Manufactured Home (homes built from June 16, 1976 to date) and obtain permanent FHA financing for a forward or reverse mortgage when the installation is complete. 

A 60 to 120 day bridge loan will enable a pre-qualified purchaser or homeowner to replace an old unit and then obtain a permanent FHA mortgage. We are happy to announce that as of February 1^st of this year GM Mortgage &; Realty INC. can now provide bridge loans tied to permanent FHA financing for “QUALIFIED” owners of manufactured homes. GM Mortgage &; Realty INC has created this bridge loan funding program in response to an ever increasing need for temporary or interim financing in the expanding affordable manufactured housing sector. 

A market and economic need exists to replace thousands of older manufactured homes (above).  Financing the replacement of these homes is difficult under current conditions.  While the opportunity for homeowners to secure permanent financing in the form of FHA backed mortgages is readily available, they will be unable to do so without a source of initial cash in the form of Bridge or Interim Financing.

The State of California estimates that in excess of 661,000 families reside in manufactured homes.  According to a 2005 survey of manufactured home owners throughout the U.S. conducted by Foremost Insurance Group (the largest insurer of manufactured homes in the U.S.), 57% of all manufactured homes rest on privatly owned land (fee simple) and the balance are on rented land.  Approximately 1.23 million older manufactured homes in the U.S. qualify for replacement and subsequent FHA financing and 81,000 of these homes are in California.

As the Baby Boomer Generation and longevity expand the need for affordable housing in the retirement housing industry experts anticipate that the demand for manufactured housing will expand  as a very viable alternative.  Baby Boomers want and need single story housing. However, financing stands in the way of this becoming a fully available alternative.

The Federal Housing Administration (FHA) has a history of securing mortgages for manufactured housing and is currently the only widely available source  of affordable mortgage guarantees for owners and buyers of manufactured homes.  FHA is an agency within the Department of Housing and Urban Development (HUD).  Available FHA insured loans for manufactured housing include conventional mortgages (purchase and refinance) and reverse mortgages for seniors.

Under HUD’s guidelines, to be eligible for FHA backed financing, a manufactured home must have been built after June 15, 1976.  This single fact creates an industry-wide problem but moreover an opportunity for a crippled RE market.  Without available financing, manufactured homes built prior to June 15, 1976 (PRE-HUD) are virtually unmarketable, lose value, become rental units or are abandoned and deteriorate until they become condemned by the local building departments and have to be demolished thus leaving the homeowner or heir with a total loss. 

The best overall solution that will benefit existing manufactured home owners, their neighbors who desire to maintain their property values, homeowner associations with the same goal, those desiring to purchase in a manufactured home community and sellers and heirs who wish to sell their homes, is to create an efficient and affordable method to replace non-eligible PRE HUD homes with brand new state-of-the-art Manufactured Homes        
                                           

 Believe me when I say it because I’ve seen it happen myself in several California and Florida Communities after major disasters i.e. Earthquakes and Hurricanes. Old dilapidated “Trailer and Mobile home Parks” made almost new due to the replacement of the destroyed homes and rehab and repair of damaged infrastructure, roads, fences, clubhouse and recreational facilities et. al.. When all was said and done many if not most of these rental parks realized major increases in value and many of them went on to become “condo conversions” or sub-divisions

This program will help turn these older if not often blighted “Mobile Home and/or Trailer Parks” into up and coming little communities unto themselves that the residents will be proud of and will benefit tremendously from when they want to sell.

Due to HUD and FHA regulations and the fact that Pre-HUD homes have diminished in value compared to newer eligible units, financing the replacement of a Pre-HUD unit is presently difficult if not impossible.  Many if not most of the lenders that previously financed manufactured home sales no longer exist. 

FHA will guarantee a long term fully amortized home loan once a new home is permanently installed on the site.  In order to achieve the end goal of a permanent FHA mortgage, an owner must find a way to first finance the replacement of the older home. 

This creates a market for short term bridge and/or construction loans. We are happy to announce that “GM MORTGAGE AND REALTY INC” can be your source for “Bridge Financing”  anywhere in California. Other states will soon follow.  

So if you know of any older “Mobile Home Parks” that have already been or are in the process of being converted from a “Rental Park” to a “Resident Owned Development” and they have “PRE HUD” homes (built before June 15, 1976) you have a potential gold mine at your doorstep.

COLD CALLS WILL WORK! With this program knocking on someone’s door will work. You will be doing those homeowners a favor by making them aware of this bridge loan opportunity. Many homeowners don’t even know what their options are and have to be educated and they will thank you for sharing with them. So don’t waste any time. Get in your car and start beating the streets in these “Condo Parks”, Sub-divisions and even private land where you know PRE-HUD homes exist before everyone else jumps into the fray and you’re just another me too standing on the sidelines saying ";Why didn't I think of that?";

If you’re a RE agent you just need to refer to your clients who are looking for affordable housing solutions or start a promotional campaign in your area to generate new leads. Then look for older MH’s that fit the profile. Share what you know with both parties (buyers and sellers) and use some ingenuity.

If you’re a lender it’s easy. Just share what you know with your clients or if you want to knock on a few doors I’ll bet you’d find one out of four that would appreciate and thank you for what you have to share with them.

The rest is easy You then just generate the loan app and if the numbers i.e.,  LTV, appriassal, income, credit, etc. pencil show us the deal and we’ll provide the “bridge loan”.  

ON THE LEVEL General Contractors Inc., a licensed, bonded and insured contractor with almost 3 decades of experience in the Manufactured Housing Industry, will be happy to provide you with the removal and replacement of your clients existing home and CREST HOMES, Manufactured Home Dealer and Developer, will be happy to help you select and purchase a new HUD approved Manufactured Home for your lot or property.

If you are a licensed California Manufactured Home Dealer Crest Homes would be happy to joint venture with you providing your client meets the qualifications and parameters of the GM Mortgage and Realty Inc    guidelines for this bridge loan program.

Good Luck in 2010 and May Your New Home Experience Begin Indoors

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