A manufactured home is permanently affixed to a foundation on land owned by the borrower. The loan amount is $400,000 in an area with a $750,000 conforming limit. What additional requirement affects GSE eligibility?
Correct Answer
C) The home must meet GSE manufactured housing standards
GSEs will purchase loans on manufactured homes that meet specific requirements including permanent foundation, borrower ownership of land, and compliance with HUD code and local building codes. The conforming limit still applies normally.
Why This Is the Correct Answer
GSEs will purchase loans on manufactured homes that meet specific requirements including permanent foundation, borrower ownership of land, and compliance with HUD code and local building codes. The conforming limit still applies normally.
More Mortgage Knowledge Questions
A borrower refinances their home with a cash-out refinance loan of $750,000. The original loan balance was $400,000, and they're taking $300,000 in cash. If conforming limits allow $766,550, how is this loan classified?
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A borrower brings a power of attorney document to closing, allowing their adult child to sign loan documents on their behalf due to a medical emergency. The power of attorney was executed yesterday. What must the settlement agent verify before proceeding?
Next Question
A married couple purchased a home together 3 years ago. Now they are divorcing, and one spouse wants to refinance the existing mortgage to remove the other spouse from the loan while keeping the same loan amount. The spouse remaining on the loan will be the sole borrower. How is this transaction classified?