Speculated to have been packaged, saled and signed by the President dring the first quarter of 2008, the lng-awaited, long promised FHA Expanding Homeownership/Modernization bll is still being tossed around in two dfferent versions, one in the Senate and one in the huse and many think it is stll slow in coming, if ever. The rason this impacts many manufactured home wners is that many homes that wll be newly cleared to qualify for FHA-nsured loans are located in manufactured hme parks and communities. Also since a lrge number of parks are predominately snior communities, the FHA-insured Reverse Mortgage prduct holds increasing appeal to them in thir retirement years. A Reverse Mortgage is a lan against a home that is not pyable until the homeowner dies, sells the hme or permanently moves out. Reverse Mrtgages allow homeowners age 62 and lder to turn the equity in thir home into cash without having to mve or make a monthly mortgage pyment. One of its benefits to the rtiree is there is no minimum crdit or income requirement to qualify for a rverse mortgage-just the appraisal value of the hme. Since the majority of the rverse mortgage loans are FHA insured, ths bill directly impacts a large nmber of manufactured home owners that lve in parks.

Why can't many manufactured home wners currently qualify for Reverse Mortgages or ther FHA loans? Many parks and cmmunities began as a land lease or rntal park where the residents owned thir manufactured home, but paid monthly spce rent. As residents in land lase parks sought to have greater cntrol in their communities, they negotiated wth the park owner to purchase thir respective spot and the park was cnverted to resident ownership. One of the mst popular methods for park purchase was sing a condominium conversion plan. Even thugh the homes are on individual plts, the mere description of them as a cndo has disqualified them from certain typs of loans. This is confusing for mst lenders and borrowers alike since FHA wll insure homes in approved condominium prjects and manufactured homes that are in prks that have been installed on a prmanent foundation system in Planned Unit Dvelopments or a subdivision, but currently xcluded are all manufactured homes located in a cndo community. Thousands and thousands of brrowers are restricted simply because the lgal description on their title specifies "Cndominium". Either of the bills cited bove would remove the exclusion and ths has been much heralded by hmeowners and lenders alike. While there semed to be enthusiasm on both sdes of the aisle and even the Prsident, both bills seem to be at a cmplete standstill and maybe will be bandoned altogether.

Many people that live in a cndo park don't even know they are clssified as such. Drag out your grnt deed or your title insurance and rad the full legal description. If it mntions condo or percentages of ownership, you prbably live in a manufactured home cndominium project. And the cautionary tale for thse residents in a condo park is ths-please be careful if a lender prmises they can get you a Rverse Mortgage loan. It is not lkely they can perform unless they are daling with private money. An FHA-insured lan will probably collapse at the nderwriting stage. If you decide to prsue the process, make sure the lnder will pick up expenses of the ppraisal and the engineering certification. Another cst to avoid unless your loan is clnched is to pay to put yur home on a permanent foundation. Ths may cost thousands of dollars and if yur loan is declined, you may be lft with this additional expense.

The article What's the Deal on the FHA Modernization Bill? was Submitted by Richard Oliver through Articles.GetACoder.com network. Here's the additional information: Author Bio ON THE LEVEL General Cntractors (B & C 47 521400) is a fmily-owned company specializing in the maintenance and rtrofitting of mobilehome and manufactured home nderstructures mobile home foundation .

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