Issue link: https://read.dmtmag.com/i/684297
JUNE 2016 6 THE JOURNAL No. 4 on Get It Quick Page I am contemplating building a seniors re- tirement community, and am planning on using modular factory built homes (some- times referred to as IBC homes) on leased homesites. May I use the FHA 207m pro- gram for a 40 year, low interest, fixed rate, 40 year, non-recourse, combination con- struction/permanent loan guarantee financ- ing program, from a private lender? Yes, and no. First and foremost is that pre- vious efforts at selling your combination of mod- ular and leased homesites haven't worked. It seems that modular construction and fee simple homesite sales may work well together for sen- iors, but often the combination of a HUD code built home with modular features on a leased homesite may be even more acceptable to sen- iors. Why? you ask me. . . Primarily because this unique loan guarantee program is intended to provide for private con- struction and permanent financing of HUD code homes on leased homesites, and not for modular construction of the home or the fee simple conveyance of the homesite. So you say. . . But I like the appearance and presumed bet- ter quality of modulars, when compared to HUD Code manufactured homes. Ah, ha! I say. . . That's because you mistakenly presume con- struction specifications on the HUD code home are, limited, and to get a more acceptable look- ing and stronger, safer home you think you must use a modular constructed home. Except for some limitations still being imposed on the use of HUD code homes by antiquated local zoning and land use regulations in some parts of the country, you have been led to believe the modular product is your only option. Wrong! In fact, though not commonly known by many outside the industry, many HUD code factory home manufac- turers can and will duplicate virtu- ally all site built home appearance features of Ask Eddie BY ED HICKS DEVELOPMENT MARKETING \ 8