Years back I walked through a modular home plant with the president of the company and was stunned at what I saw. In this facility new homes were being built in a fashion I had never witnessed. Wood was checked as it entered the factory to ensure moisture tolerances were met. The various craftsmen and women were diligently constructing their part of the home just as most had done for years, however, the conditions were dry and being performed with speed, accuracy and quality! At the end of the process the final result was a home whose fit and finish surpassed the quality of the custom home that had recently been completed for my family. Wow-was I impressed!
Modular homes, from our lending perspective, are treated exactly as a site built property but with a few extra benefits. This opinion is backed by both HUD (Housing and Urban Development) for their FHA and VA programs and The Appraisal Institute, the guiding authority for appraisers nationally. For those who care to read it, the specific guideline where HUD outlines their stance can be found in the HUD guide, the 4155.2, Chap 4 page 4-8 (4155.2 4.1.i). In addition, modular homes must be built to the same building code as any site built home being constructed in the same jurisdiction. The important aspect of this detail to a homeowner and to us as a lender, is that modular homes appreciate just like their site built neighbors.Beyond these facts these homes are generally completed faster than a comparable site built property allowing buyers to move into their new home sooner.
As I think back to that facility tour, to the dry wood that produced straight walls and clean drywall seams; to the craftsmen and women well practiced at producing quality homes; I am thankful of the lasting impact on our lending business. Understanding the true quality of these homes created the opportunity for us to develop our specialized loans for modular homebuyers. As you explore buying your new home and learn more about Modular or Off-Site Construction, I am sure you will come to agree with me, a Modular Home is an excellent choice.
ABOUT THE AUTHOR: Stuart Tyrie is Senior Vice President of GMH Mortgage Services, a private mortgage bank that lends across the country. Mr. Tyrie has focused on new construction lending throughout his career, is a member of the National Association of Homebuilders and the Mortgage Bankers Association. To learn more about GMH and its specialized construction loans please visit their website: GMHmortgageSPG.com.
For More Information:
Contact Stuart Tyrie at styrie@gmhmortgage.com or Buddy White at bwhite@gmhmortgage.com. The National Service Team is available to help at (toll free) 855-538-8800 or email us at servicecenter@gmhmortgage.com.
