Custom Lending for Traditional and Manufactured Homes.
No 433a Certificate of Occupancy Issued – Finally a Solution! Manufactured Homes need them for financing
If you find out that the manufactured home you wish to purchase does not have a permanent foundation installed, or there is No 433a Occupancy Certificate issued, we can still help with your manufactured home mortgages.
Older home installations did not all require the issuance of a 433a. Some homes did not even apply for permits. Today’s manufactured homes are legally installed by getting a County/City permit to prior to the install. When the work is done, the Inspector comes back and signs off the work as completed successfully, and the the home is ready to live in, is recorded.
Older manufactured homes did not always have a 433a Certificate issued, at the time they were installed. Still, the foundation may be permanent.
The goal is to have the seller pay for the installation, out of his sales proceeds. We can get you a purchase money loan for the manufactured home and close the loan as soon as the County issues the 433a Certificate. If you need one, I have a manufactured home foundation installation company that will collect their funds at loan closing.
The seller may feel that the cost of installing the permanent foundation, and the issuance of the 433a Certificate, belongs to you. However, that may not be the case, for the following reasons.
The comparable sales your appraiser will generate, will most likely be for homes with loans already on them. If they have financing in place, then you know that home has a permanent foundation, or there was no recent loan.
All the traditional loans, meaning FHA, VA and Conventional, require permanent foundations be installed, and the 433a Certificate issued.
Therefore, the seller is receiving the purchase price based on the home already being in compliance with current County and State Regulations, and the comparable sales prices are based on the home having a permanent foundation installed.
If you pay the asking price, and you pay for the foundation installation, then you have paid twice for the foundation.
Also, foundation contractors need to work with the owner of the property, if they are going to be paid for the foundation work, when the escrow closes.
As the buyer, you can’t offer the home as security for the Contract Agreement for work. You won’t own the property until the loan closes.
There are other items to consider as well. Please call or write me, and I will answer any further questions.
If you need a manufactured home placed on permanent foundation, the home does not have to be moved. Actually they do the work in about a day, and when you and I look at it, we can’t tell any difference.
The charges usually $3,000 to $4,000, depending on the size of the home and the type of foundation. Some loan files that I have completed, gave me experience with which companies I could recommend to do such a job. You can also just Google it, and probably come up with a couple of the same names I have, because there are not too many companies that do this kind of work.
So you would get bids from a couple of companies, get them to explain what kind of materials they were using, and after you choose one, they will go to the county or city and get the permits they need to do the job.
Please be aware, that as of January, 2023, Riverside County has added some requirements to the issue of the 433a Application. The foundation company should be up on these new requirements, but you will need a contingency, within the Offer to Purchase, that the home will qualify to receive the 433a Occupancy Certification Permit.
After the job is done, and you now have a permanent foundation, the building inspector requests a 433a document. Once it’s recorded, you are given a copy, and from that point on, to 433a certificate is a recorded public document.
Please call to discuss more details of your particular transaction.