Hard to believe that we’re already approaching the end of August! The kids have gone back to school and the days are just a tad shorter, but man oh man, the weather remains hot and humid! Whew! I could use a tall glass of iced tea! But the good news is that soon we’ll transition into Fall.
Now that you have firmly had a grip on the new Rules resulting from the NAR lawsuit, it’s time to brace for the next big change. This is especially true for buyers and sellers of manufactured homes. The critical aspect is the skirting. Oh, you guessed it the role out of this change is about as bad as the role out of the NAR lawsuit.
You already know that mobile home skirting, also known as underpinning, protects the appearance and value of a mobile home, AND it must meet federal standards.
Federal standards? What?
Yes, federal standards that state the following:
“If the perimeter enclosure is non-load bearing skirting comprised of lightweight material, the entire surface area of skirting must be permanently attached to backing made of concrete, masonry, treated wood or a product with similar strength and durability.”
Seems easy enough, right? Well…not so much. Even though this regulation has been in place and effective for the past 10 years, HUD considered compliance with the regulation if a mobile home had a frame and no wood backing the skirting. So it was easier to navigate.
However, things have changed recently and HUD is cracking down. By May, 2025, they expect everyone to be on the same page, especially when it comes to FHA and USDA buyers.
So, what exactly does that mean?
Here are 5 very important things to know:
1. Mobile homes that were once considered compliant may no longer meet the regulation, and maybe banned from sale to FHA and USDA buyers without costly repairs. And…you guessed it, there’s no grandfather clause.
2. Before the initial offer is written, the agent should do some due diligence which is to check under the home for some backing. On a positive note, this can help prevent delays or other complications later in the process.
3. Traditionally, it was the responsibility of the engineer to verify compliance, but now HUD is requiring the appraiser to photograph this, and they are responsible to verify compliance with the skirting. This also seems counterintuitive. THIS MAKES IT MORE IMPORTANT THAN EVER TO HAVE YOUR SELLERS PAY FOR THE STURCUTRAL. That way the structural can happen at the beginning and if the appraiser fails it the client is not out the money.
4. Not all lenders are aware of these new requirements. In some cases, they may only find out when it becomes an issue in the transaction. Agents should be diligent in communicating with lenders when it comes to compliance.
5. It’s crucial to manage client expectations. All parties involved in the transaction need to understand that the enforcement of these regulations are required by HUD/FHA, and are NOT lender-specific. When it comes to understanding these regulations, education is key.
Seems like a lot? Yeah, it does to me too. So…how do we move forward? I believe that if we all stay vigilant and adaptable then we can take proactive steps to help our clients navigate this changing landscape, and close successful transactions. Yes, I believe that’s how we do it.
Now, let’s grab a tall glass of tea and get back to closing deals! Of course, if you or your clients have questions, then I am happy to help. Just give me a call. The number is (865) 745-5626.
By the way, if you’d like to see actual photos of skirting that’s compliant and skirting that isn’t, then I have those available for you. Boy, do they tell a story!
Here’s to compliant skirting and as always, let’s mortgage!
John Fleming, Jr.
Mortgage Banker
Stockton Mortgage Loan Originator | NMLS 1850409
(865) 745-5626
john.fleming@stockton.com
P.S. I can help FHA and USDA buyers navigate and get through the mortgage process. I can help them secure the best loan possible. Send them my way. My number is (865) 745-5626.
Food For Thought: Although East Tennessee and Knoxville in particular remain hotspots for real estate, lower income households continue to struggle with housing affordability and supply. According to chief economists, this trend will continue in this highly robust sellers market. And even though inventory remains low, it hasn’t stopped buyers from finding deals. But this could all change very soon. According to the National Association of Realtors, the housing market is expected to appreciate 15% to 25% over the next five years. However, the Association is predicting a more balanced market where sellers have no more advantage than buyers. And that shift means the deals will probably end up on a case-by-case basis. There just won’t be so many deals. But that doesn’t mean people won’t buy homes. I can help. I’m committed to helping home buyers find the best loan possible. Call me at (865) 745-5626 to discuss options.
Happenings: It’s almost time to close out the summer season. Labor Day is only a few days away. Do you have any plans for this final summer holiday? Well, I have an idea for you. Come on out to World’s Fair Park for some of the best wings in the South. Yes, the very best. Big Kahuna Wings will be at World’s Fair Park on Labor Day. There’ll be live music and cold beverages, and of course those big juicy wings. This marks the 11th Annual Wing Fest, and you don’t want to miss it! Join me in the fun.