Is a loan for a manufactured home that is placed on leased or rented land, such as a lot in a mobile home park, a “residential mortgage loan”?
• No. In order for a loan to be a “residential mortgage loan,” it must be a “federally-related mortgage loan.” A “federally-related mortgage loan” is a loan that is secured by a first or subordinate lien on residential real property. However, the Bureaus wish to emphasize that, if a loan for a manufactured home is secured by residential real property, the loan may meet the definition of a “federally-related mortgage loan” and therefore, may be a “residential mortgage loan.” The new law uses the phrase “conventional rate,” which serves as the baseline when determining whether a loan is a subprime loan or a high-rate, high-fee loan. What date should be used when determining conventional rate? • Use the 15th day of the month prior to the application date. The “conventional mortgage rate” means the most recently-published annual yield on conventional mortgages published by the Board of Governors of the Federal Reserve System. Federal rules provide that the date to be used is the fifteenth
Related Questions
- Im interested in the FHA loan for a manufactured home, but I don know whether I am allowed to buy for a unit on my own land or in a mobile home park?
- Is a loan for a manufactured home that is placed on leased or rented land, such as a lot in a mobile home park, a "residential mortgage loan"?
- I purchased a manufactured home and installed it on leased land. What information must be on the bill of sale?
