2 Manufactured Homes & Reverse Mortgages

The typical “bricks and mortar” homes predominantly found in the Metro areas such as Albuquerque, Santa Fe, and Las Cruces are not indicative of the types of dwellings more common to the vast rural areas of the State.  Manufactured homes (MFH) form a good percentage of the residences located in the less populous regions.  There are many lenders, including those specializing in HECM mortgages, unwilling to apply their resources to manufactured homes, perhaps owing to additional procedures and documentation mandatory to the process.

New Mexico Reverse Mortgage is proud to offer our services to those who occupy manufactured homes.  Indeed, there are additional concerns to be addressed when processing a loan for a manufactured home; foremost, a distinction must be made between a mobile home and a manufactured home.  A mobile home is considered, for the sake of titling, to be a motor vehicle; it has wheels, axles, a chassis, or a combination thereof resulting in the designation of “vehicle”.  However, such mobile homes may be converted into qualified manufactured homes by the deactivation of the vehicle title, removal of the wheels and axles, and installation onto a permanent foundation.  Modular (or kit homes) may also qualify, as can homes manufactured off-site and homes that have unique building construction.  Please consult with your loan professional to discuss the possible applicability of such homes to the HECM program.

There are additional guidelines, subject to change, for manufactured homes, including but not limited to:  meeting  all FHA/HUD MFH guidelines; MFH must be double-wide; minimum home size must be 800 square feet; must have been constructed after June 15, 1976; must be on a permanent foundation verified by a structural engineer with an “Engineer’s Report”; must have a data plate and HUD tags; must not be on a leasehold; must not be a mixed use property; must be classified and taxed as “real property”, etc.  If you need the assistance of a foundation engineer, Steve Crawford, PE is an engineer who conducts MFH foundation inspections throughout the State of New Mexico.  He can be called at 505-865-6442.  A title company in your area may also be able to direct you to a qualified engineer.

What is Reverse Mortgage

If you have ever watched the ever-increasing late-night TV commercials showing celebrities endorsing Reverse Mortgage products, you have probably been left more confused about what it all entails than if you had never seen these vague explanations in the first place.

A HECM (Home Equity Conversion Mortgage) is a multi-faceted mortgage product available to homeowners aged 62 and over.  The general overview given in response to consumer inquiries is that a reverse mortgage allows you to borrow against the equity in your home while you still reside in it, and that the loan is not payable until all homeowners have left permanently or passed away.  The HECM program is insured by HUD through the Federal Housing Administration (FHA).  It is a unique and specialized program and therefore, it is not offered as a product by most mortgage lenders.  This is why specialists in the program, such as we at New Mexico Reverse Mortgage, are uniquely qualified to guide the client to the best possible program for their situation.

The process is extensive, including in-depth education and explanations of each program’s pros and cons.  It can be used to pay off existing mortgages and liens, as well as to acquire excess cash for home improvements, vacations, or any other purpose for which you may wish to use your proceeds.  It is suggested that in inquiring about the various programs, you work with a trusted and experienced professional to ensure you are properly educated about the options available.  New Mexico Reverse Mortgage is the premier resource for such professional assistance in the Albuquerque Metro area.