Historically, a Manufactured Home in a Flood Zone has been problematic. In addition to what ever “perceived risks” Manufactured Homes in general have posed to Lenders…the Scenario of a Manufactured / Mobile Home being located in a Flood Zone has always been a non-starter. In the past, although New Horizon Mortgage Concepts has usually been able to secure “Conventional Financing” for Manufactured Homes in a Flood Zone…Government Insured Financing (such as FHA and VA) has not been an option. However, the ever evolving Manufactured Home Financing trajectory has recently made the possibility of Government Insured Financing a possibility at New Horizon Mortgage Concepts. Currently FEMA (the Federal Emergency Management Agency) oversees Flood Data and Information throughout the United States. There are areas known as “Flood Zones” where, in the past, flooding conditions have been known to occur. FEMA keeps track of these events and have established Data that includes Base Flood Elevations (BFE) based on historic 100 year flood conditions. In order to get Flood Insurance, a Survey of the Property is generally required in order to determine how high above the Base Flood Elevation a Structure / Improvement is located. In general, the higher the elevation, the lower the Flood Insurance Premium will be. New Horizon Mortgage Concepts is exploring using this same process (i.e. having a Survey of the Property done) in order to get Manufactured / Mobile Homes approved for Government Insured Financing. Upon completing a Survey, an Engineering Firm provides an Engineer’s Certificate that reflects how high the Home is above the BFE. The resulting information allows an Underwriter to make a determination as to whether a Property is acceptable for Financing or not. This is yet another exciting advancement in Manufactured / Mobile Home Financing and New Horizon Mortgage Concepts is optimistic about the increased business that may transpire as a result of this evolution.
In spite of all of the conjecture that the FED was ready to raise Interest Rates at the Federal Open Market Committee meeting last week, once again they have decided to hold off. Apparently, the “economic indicating stars” still have not aligned from the FED’s perspective. Lenders and Borrowers alike exhaled a collective sigh of relief at the news because, like with previous meetings, there was considerable speculation that the time for a Rate Increase was finally upon us. In addition to the usual Domestic and Global economic indicators that the FED looks to, perhaps the fast approaching Holiday Season (i.e. Shopping Season) also contributed to their decision. Although the U.S. Economy is seemingly performing the best that it has in years, there are facets of the economy, such as wage growth for example, that are really not where they should be in many Analyst’s eyes. In light of that, it’s safe to assume that the FED is still being cautious about making any moves that could throw the Economy’s tentative recovery off of it’s current trajectory. At this point, the next FOMC meeting is not until the end of December (i.e. immediately following the Shopping Season) so it remains a good time to take advantage of the historically low Interest Rates that still prevail.
