The Manufactured Housing Endorsement is something that a lender will usually want, even if it is not initially requested (the investor will typically want it).
If a MH unit is affixed to the real estate, it can be conveyed or mortgaged with the land. If a lender asks for an ALTA 7 or ALTA 7.1 Manufactured Housing Endorsement, here’s what you need to know:
- The seller, or borrower in a refinance, must sign VATC’s Manufactured Housing Affidavit affirming that the unit is physically affixed to the land. Once signed, the affidavit can remain in your file. You can save it in a directory and use it any time.
- The MH unit must be included (described) in the property description of the deed and/or mortgage.
[infobox]There are three different MH endorsements to choose from:
- ALTA 7.1 Loan When borrower owns home and lot;
- ALTA 7.2 Owner – When Owner owns home and lot.
3. There is a $100 endorsement fee so be sure to add this to the invoice; that way it will be reflected on the Transmittal Sheet when you remit the policy . To add the endorsement fee go to Premium Calculator; then Charges I; then check the box for Vermont Manufactured Housing. Note: the additional premium is not subject to agent commission.
4. There cannot be any UCC’s on the MH or, if there are, they must be discharged. Requires search on Secretary of State website.
NB: The foregoing does NOT apply to MH’s that are on rented lots or in parks. In other words, the endorsement may ONLY be issued where the borrower owns the unit and the real estate. If the MH is on a rented lot or in a park, please issue a Leasehold Mortgage policy but NO MH endorsement.