| Homeowners that live in manufactured homes often | | | | attest to that fact in a certification letter, wet-stamped |
| face confusion and frustration at the worst possible | | | | and signed. One can imagine a worst case scenario |
| time ---at the 11th hour when they go to buy/sell or | | | | where a borrower pays big dollars for a system |
| refinance their home and the lender pops up with a | | | | installation, only to have the installation fail under the |
| final condition: an engineer's certification of the | | | | scrutiny of an engineer. |
| manufactured home's foundation. For many this | | | | While the safety features alone of a foundation |
| becomes a crisis when the foundation fails to meet | | | | system might normally be a component in a |
| the HUD guidelines. To resolve the situation and | | | | homeowner or home buyer's decision-making, the |
| proceed with the loan, the lender will then require an | | | | tick-tock of a loan lock creates a sense of urgency. |
| engineered upgrade, repair or a retrofit on the | | | | Plus the unexpected cost of a retrofit at a time of |
| foundation in order to meet the HUD guidelines. In a | | | | financial need will generally cause most borrowers to |
| state of panic, where does the borrower or lender go | | | | think primarily with their pocketbooks. While many |
| for a reliable source to satisfy this condition? | | | | manufacturers of foundation systems battle for |
| Fortunately, there is a vast array of pre-engineered | | | | positioning because they protest that their system has |
| and approved "permanent" foundation systems | | | | superior load-bearing or seismic resistance, the reality is |
| available in the marketplace so the homeowner or | | | | that the performance of the installer and the |
| home buyer doesn't have to pay to reinvent the wheel, | | | | turn-around time for the engineer to certify the |
| but the borrower may still have a difficult time | | | | foundation have become the new standard for |
| discerning which criteria should be used to make a | | | | structural excellence in the world of FHA |
| selection. Should they focus on the features and | | | | manufactured housing financing. By necessity, the |
| benefits of the individual system or make a decision | | | | merits of the system and its structural efficacy have |
| strictly on the price point? The fact that homeowners | | | | taken a back seat to the contractor and engineering |
| are floundering for answers at a time of heightened | | | | team that provides the verification that the lender |
| stress in the loan consummation process accelerates | | | | needs to take the loan to underwriting. Since a system |
| their confusion and leads some borrowers to blame | | | | is only as good as its installation and certification by an |
| the loan officers or transaction coordinators. "Why | | | | engineer, start by finding a contractor/engineer team |
| didn't anyone know this??" is the frequent outcry. To | | | | that that has a comprehensive knowledge of the FHA |
| be fair, the loan officer or processor is likely dealing | | | | and title process, can liaison between borrower and |
| with their very first FHA and Reverse Mortgage Loan | | | | lender to create a seamless transaction, can provide |
| and was not aware that the foundation would be a | | | | extra structural support for the home as well as the |
| critical factor in the loan. However, the borrower often | | | | much needed service support for the loan transaction. |
| views this last minute potentially expensive surprise as | | | | Manufactured homes and FHA Insured loans specialty |
| a lack of professionalism on the part of the lender and | | | | contractors are often knowledgeable about both the |
| further adds to his/her consternation. | | | | plethora of proprietary systems available on the |
| So, for both borrower and lender, it may be important | | | | market as well as the costs and the building permit |
| to have a strategy to interpret available repair | | | | process associated with the installation. They |
| solutions. Where can a borrower or lender get the | | | | understand that different systems have different |
| best information? A web search for foundation | | | | merits and the ranking for decision-making has a |
| systems may supply you with some of the names | | | | number of determining factors, some of which are: |
| prominent in the industry and you can start educating | | | | 1. Size of home |
| by having product manufacturers feature the benefits | | | | 2. Type of home manufacturer and the style |
| of their respective proprietary foundation system. | | | | 3. Type of perimeter enclosure |
| Likely you will hear the manufacturer's self-directed | | | | 4. Type of set-up (above ground or subterranean set) |
| accolades extolling the virtues of their system as the | | | | 5. Type of soil/ground/drainage conditions |
| "only true FHA certified system" so the tariff for the | | | | 6. Appurtenant structures to the home |
| system may also include a hefty sales commission. | | | | 7. Roof load, floor load, live load in the home |
| Although many manufacturers proclaim that their | | | | 8. Local building code requirements determined by wind, |
| patented proprietary foundation retrofitting is FHA or | | | | flood, seismic activity |
| HUD approved, the truth is there are no blanket | | | | 9. Best system vs. best value |
| approvals that automatically provide a stamp of | | | | Therefore, choosing your foundation system should |
| approval on an FHA-insured loan. Even though the | | | | come down to the competency of the retrofitter |
| components that are used in their system may indeed | | | | engineering team that can economically, expeditiously |
| provide the vertical and lateral loads needed to meet | | | | and successfully accomplish a finished product, wading |
| the HUD Permanent Foundation Guide for | | | | through the lending requisites, local building department |
| Manufactured Homes, 1996, without proper installation | | | | requirements, providing any recorded documentation |
| the system is as worthless as Tinker Toys sitting in | | | | (like the 433A in California) and the ultimate prize---the |
| the cannister. Only a licensed engineer on a | | | | engineer's certification letter verifying that the |
| case-by-case basis can determine whether the | | | | foundation meets the HUD guidelines. |
| system meets the HUD foundation guidelines and must | | | | |