USDA Adequate Housing Question (home loan, personal property, loan, property)

[tiffany77]

I currently own a manufactured home and the land on which it sits in NC. Although the county taxes the land and home as one property and the home is on a permanent foundation having had the wheels and axles removed, I have retained the titles to the home (2 since it is a doublewide) through the NCDMV, and the land deed is only a description of the land itself with no mention of the home. I have never filed an Affidavit of Affixture with the county, nor have I retired the titles to the home. In this case, is my home still considered chattel? Does anyone know for sure if USDA considers chattel property as adequate housing? I know an eligibility requirement for getting a guarantee commitment from USDA is that you must not currently own adequate housing. I appreciate any help on this that anyone has to offer.

[Modification Specialist]

Originally Posted by tiffany77

I currently own a manufactured home and the land on which it sits in NC. Although the county taxes the land and home as one property and the home is on a permanent foundation having had the wheels and axles removed, I have retained the titles to the home (2 since it is a doublewide) through the NCDMV, and the land deed is only a description of the land itself with no mention of the home. I have never filed an Affidavit of Affixture with the county, nor have I retired the titles to the home. In this case, is my home still considered chattel? Does anyone know for sure if USDA considers chattel property as adequate housing? I know an eligibility requirement for getting a guarantee commitment from USDA is that you must not currently own adequate housing. I appreciate any help on this that anyone has to offer.

Hi Tiffany

One of the mortgage guys might be able to provide a better answer. Though years ago was a loan officer. Tried to write a few manufactured home loans. Underwriting is a killer on this types of loans.

An Affidavit of Affixture is a document that is used to change the status of a manufactured home from personal property to real property.
Having had the wheels and axles removed and home is on a permanent foundation is good, but you need to see what the courthouse has your description has.

Your should contact your local court house to find out what is the valuation Process for your state. I worked in home owners in another state, where it was a required engineering report done to prove the home was permanent.

My comments about retiring your title(s) - since you have one for the home, and one for the land. If you are doing the Affidavit to change your home from a trailer to a permanent. Why wouldn't you want to give both up, to received one title showing your home and land on one document?

Good Luck, my $00.02

[tiffany77]

Thanks so much for your reply. Just to clarify... If I were planning on retaining my current housing scenario as my primary residence, I would indeed go through with retiring the titles as well as "affixing" the home to the land on paper. However, I am currently looking into purchasing a new home and am looking at possibly trying to get a USDA Guaranteed Loan in order to do so.

The manufactured home in which I currently live is fairly old (1986) and it was inherited. It is definitely showing its age. In fact, I may decide in the future to remove the home altogether and retain the land only. My main question is whether or not I may be able to obtain the USDA Guarantee although this home is currently in my name.

That is where my confusion stems from in whether or not the manufactured home is considered adequate housing. If USDA considers it to be adequate, then I will not qualify for this type of loan. I've read a couple of different posts on other sites that stated USDA does not consider chattel property as adequate housing. However, I can't find any definite guidelines from the USDA's official site or anywhere else for that matter. It all seems so very vague.

[jameaci]

How will I know if a house I am thinking about buying is in a USDA rural area?

[Green Irish Eyes]

Type in the address here and the program will tell you if a property is eligible.