Refinancing a Manufactured Home in Kentucky: The Inspection Checklist

One of the most important factors is the physical condition of the property and the way in which the house is classified.

In some cases, depending on the lender and the loan programme, an inspection, an appraisal, a foundation evaluation or other documentation will be needed before a refinance is carried out. Moreover, Kentucky has particular requirements relating to the installation of manufactured homes, foundations, titles, and the conversion to real estate.

If you are going ahead with refinancing a manufactured home in Kentucky, it may be helpful to know what will be examined during the process.

Why an Inspection May Matter When Refinancing

In order to refinance a loan a lender must know about the property that is providing security for the loan; for the particular loan programme in question the lender might ask for an appraisal and might also ask for inspections or specific documentation.

For manufactured homes it is especially important to have a good foundation and to install them correctly.

The regulations in Kentucky lay down the minimum requirements concerning the installation of manufactured homes and the construction of permanent foundations. When constructing permanent foundations it is necessary to adhere to the manufacturer's instructions for installation as well as to the relevant requirements, including those methods intended to protect against frost heave.

The specific inspection requirements for your refinance will vary according to the lender and the type of loan, so homeowners should check what the requirements are before booking an inspection.

1. Check the identity of the manufactured home.

Before either an inspection or an appraisal, collect the documents which identify the house.

Important information may include:

ManufacturerModelYear builtSerial numberHUD certification label informationExisting titleInstallation recordsPrevious inspection documentsProperty records

Sorting out these documents can make the process of refinance easier.

The regulations in Kentucky specifically mention the HUD certification label number and serial number in the records relating to manufactured homes.

2. Check the Foundation

One of the most important aspects to look at is the foundation.

Inspectors or other qualified professionals may look for visible evidence of:

SettlementDeteriorationMovementImproper supportDamaged piersProblems with footingsMissing or inadequate anchoringWater-related deterioration

The regulations concerning the installation of manufactured homes in Kentucky specify the requirements for permanent foundations, such as the types of foundation methods that are approved and the measures to be taken for protection against frost heave.

So, if the lender asks for a foundation certification then a general home inspection will not be enough and a licensed professional engineer or another appropriately qualified professional will have to give the documentation required.

3. Look at Anchoring and Installation

A manufactured home has to be securely fastened to its site.

The inspection could take into account the visible parts which are related to anchoring, support, and installation.

The regulations in Kentucky mandate that manufactured homes must be installed by certified installers and also specify the requirements regarding ground anchoring and the need for permanent foundations.

If the home is improperly installed or if any components are missing, this could cause a problem when refinancing since the lender may ask for proof that the house complies with the relevant standards.

4. Inspect the Roof

The roof needs to be checked for any visible signs of deterioration or damage.

Look for:

Damaged roofing materialsLeaksDeteriorated flashingDamaged penetrationsPonding waterSaggingImproper repairsEvidence of previous water intrusion

The condition of a property and its future maintenance costs can both be influenced by roof problems.

It may also be helpful to deal with any ongoing leaks before refinancing in order to avoid further damage to the inside of the property.

5. Check the Exterior

One should look at the exterior of the house to check for any visible signs of deterioration.

Potential areas of concern include:

SidingSkirting or underpinningWindowsExterior doorsTrimDecksPorchesStepsExterior drainage

The regulations in Kentucky with regard to underpinning prescribe that it should be carried out in accordance with the manufacturer's instructions and also require access provisions to be included when underpinning is installed.

6. Assess the plumbing and waste systems

Plumbing problems can have an effect on the condition of the home and may even lead to unseen damage.

An inspection may look for visible:

LeaksDamaged fixturesCorrosionDrainage problemsWater stainsImproper repairsProblems around water heaters

The plumbing and waste systems of used manufactured homes in Kentucky must be checked to see if they are operational and free from leaks.

7. Examine the heating and cooling systems

The HVAC equipment can be an important element in the general condition of the property.

The inspection may consider:

Heating equipmentCooling equipmentFuel-burning systemsAccessible ductworkThermostats and controlsVisible condensate issuesEquipment condition

The rules that Kentucky has regarding inspections of certain used manufactured homes specifically look into whether the heating, cooling, and fuel-burning systems are working.

The refinance lender could have further requirements according to the loan program.

8. Check the electrical system

The electrical systems should be checked for any obvious safety issues and for signs of incorrect installation.

Areas that may be reviewed include:

Main electrical panelWiringOutletsSwitchesGrounding and bonding componentsExterior electrical connectionsSigns of overheating or damage

The Kentucky regulations which cover certain inspections of used manufactured homes include the main circuit box, the outlets, and the switches and specify the particular conditions which inspectors are to look for.

If a serious concern is found, specialized electrical testing might be required.

9. Check for water infiltration and moisture damage.

The problems caused by water damage go beyond mere cosmetic deterioration.

During an inspection, look for:

Ceiling stainsWall discolorationSoft flooringDamaged drywallMusty odorsDamp areasMold-like growthLeaking plumbingRoof-related water intrusion

When moisture or possible mold is found, further evaluation might then be suitable.

10. Check the condition of the doors, windows, and the structure.

Within the scope of the inspection, doors and windows should function properly and should not have obvious signs of serious deterioration.

The inspector can also look at the visible structural conditions, such as the floors, walls, ceilings, and other components that are accessible.

The doors, windows, and general structural integrity of the property are specifically covered by Kentucky's regulations concerning certain inspections of used homes.

11. Check the Home's Real Estate Status

Another point to consider is whether the mobile home is regarded as personal property or has been changed into real estate.

According to the Kentucky Department of Revenue and Vehicle Regulation, if a manufactured home is permanently attached to land then the owner can draw up and submit an affidavit of conversion to real estate to the county clerk and hand over the Kentucky certificate of title.

The difference can be important when getting financing or refinancing since lenders might have particular requirements as to the property used to secure the loan.

Homeowners should check with their lender, title company, lawyer, or the relevant county office regarding the legal and title status of the property.

12. Collect the earlier inspection and installation records.

Take the records that you already have before you refinance.

Useful documents may include:

Original installation paperworkFoundation documentationHUD label informationTitle recordsManufactured Housing AffidavitPrevious inspection reportsRepair invoicesRoof recordsHVAC service recordsElectrical or plumbing documentationPermits and approvals

Having access to these records can be of help in dealing with questions that come up during the refinance process.

What if the inspection turns up problems?

The fact that an inspection finding exists doesn't mean that refinancing will be refused.

What the appropriate response should be will depend on the lender's requirements and the type of the condition.

For example, the lender may request:

RepairsAdditional documentationA specialized inspectionA foundation certificationAn appraisal updateContractor estimatesEvidence that a safety issue has been corrected

Wherever a major structural or fundamental issue is found, it may be necessary to have it looked into by a properly qualified professional.

Does each refinance have to involve the same inspection?

No.

The requirements regarding inspections and appraisals will differ depending on the lender, the loan program, the type of property, its age, the kind of foundation, and other factors.

For instance, financing guaranteed by the FHA has certain requirements relating to manufactured housing, namely that both the house and the site must be regarded as a real estate entity under the relevant state laws and that foundation compliance is required. Guidance issued by HUD also covers the foundation requirements for manufactured housing.

Homeowners should therefore ask their lender what kind of inspection, appraisal, foundation certification, or other documentation is needed before arranging for the services.

A Practical Kentucky Manufactured Home Refinance Checklist

Before the inspection or appraisal, consider preparing the following:

Make sure that the lender's requirements regarding the inspection and the appraisal are met. Obtain the home's serial number and its HUD label details. Find the title and ownership papers. Check if the property has been converted into real estate. Get the foundation and installation records. Look at the earlier inspection reports. Check for any visible damage to the roof or leaks. Investigate whether there are any plumbing leaks or water damage. Examine the HVAC operation and maintenance records and look for any visible electrical problems. Inspect the foundation and the support system. Check the exterior siding, the skirting, the doors and the windows. Deal with any obvious safety hazards. Collect the documentation for any repairs that have already been carried out. Find out if a professional foundation certification is required.

Final Thoughts

Refinancing a manufactured home in Kentucky may require more than just filling out a new loan application, since the property's physical condition, foundation, method of installation, title situation, and the relevant documentation can all become important according to the lender and the loan program.

A detailed inspection can be of help in spotting any visible problems before they lead to more questions arising during the refinance process. It should not be assumed, though, that a general inspection meets all the requirements of each lender.

Before you arrange the inspection, discuss the specific requirements for your refinance with your lender. You should then use the inspection process to spot possible problems, get your documents in order, and prepare your Kentucky manufactured home for the next phase of financing.