Pre-HUD vs. HUD

 

Pre-HUD vs. HUD

What is this term “pre-HUD” that is always thrown around? Well, it all started back in 1976, June 15th to be exact. When The U.S. Department of Housing and Urban Development (HUD) enacted the HUD Code.

The HUD Code, unlike conventional building codes, requires manufactured housing units built after that date to be constructed on a permanent chassis.  This distinction is crucial because it creates a manufactured home, not a mobile home, as they are no longer considered truly mobile! Any manufactured housing unit built prior to June 15th, 1976, is considered pre-HUD. Homes built after that date are manufactured homes and are generally built to higher safety standards including roof load, wind resistance, thermal efficiency, durability and more.

Why is this important?  It is because mobile homes and manufactured homes are considered personal property, not real property like traditional built homes.  Personal property can be moved, while real property cannot. When getting a loan on a home, the lender wants to know that their collateral (the home) will be available to them should you default on the loan payments.  

But don’t fret, there are loans available for both manufactured homes and pre-HUD manufactured housing units.  This is where we can help. We at The Mortgage House believe that everyone deserves a great place to live.  Therefore, we offer home loan options for all types of homes; including mobile homes, manufactured homes, modular homes and traditional “stick built” homes.

-Lender in the Know

Location: California, USA

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