Definition and Meaning of a Manufactured Rider Form
A Manufactured Rider Form is a legal document that is attached to a mortgage or deed of trust. This form specifically addresses the treatment of a manufactured home as part of the real property, rather than as personal property. By including details such as the home's make, model, and vehicle identification number (VIN), the form ensures that the manufactured home is permanently affixed to the land. This integration allows the home to be financed alongside the land under standard mortgage terms.
In the context of U.S. real estate, this rider is crucial for lenders, as it secures their interest in both the land and the manufactured home. It modifies the original mortgage agreement to reflect that the manufactured home is now considered real estate, which is essential for financing, sale, and taxation purposes.
Key Elements of the Manufactured Rider
Understanding the key elements of a Manufactured Rider Form is essential for both borrowers and lenders. The following components are typically included:
- Identification of the Home: This section includes specific details about the manufactured home, such as the make, model, year, VIN, and serial number.
- Affixation Requirement: The form stipulates that the home must be permanently attached to a foundation, with utilities connected and wheels or hitches removed.
- Modification of Security Interest: The rider amends the original mortgage to incorporate the manufactured home as part of the property being financed.
- Compliance with State Laws: The form must adhere to state-specific regulations regarding manufactured homes and real property.
How to Use the Manufactured Rider
Using a Manufactured Rider Form involves several steps to ensure compliance and proper integration with the mortgage. Here’s a general guide:
- Obtain the Form: The form can be obtained through legal resources or lenders familiar with manufactured home financing.
- Complete the Form: Fill out the required details accurately, ensuring all specifications of the manufactured home are included.
- Attach to Mortgage Documents: Once completed, the rider must be attached to the mortgage or deed of trust documents before signing.
- Review by Legal Counsel: It is advisable to have the completed form reviewed by a legal professional to ensure compliance with local laws.
Examples of Using the Manufactured Rider
Consider a scenario where a borrower is purchasing a piece of land with a manufactured home already on it. In this case:
- The borrower will need to complete the Manufactured Rider Form to ensure that the home is treated as part of the real estate transaction.
- By doing so, the lender can secure their interest in both the land and the manufactured home, facilitating the mortgage process.
Another example involves a borrower wishing to place a new manufactured home on a purchased lot. Here, the Manufactured Rider Form ensures that the new home will be financed as part of the property, rather than as a separate personal property item.
Legal Use of the Manufactured Rider
The legal use of a Manufactured Rider Form is governed by state laws and regulations. It is important to understand the legal framework surrounding manufactured homes in your state:
- State Regulations: Each state may have specific requirements for how manufactured homes must be affixed and documented.
- Compliance with Lender Policies: Lenders may have their own policies regarding the use of the Manufactured Rider, often aligning with guidelines from entities like Fannie Mae.
- Legal Counsel Recommendations: Consulting with a legal expert can help ensure that all legal aspects are properly addressed, minimizing risks for both borrowers and lenders.
Who Typically Uses the Manufactured Rider?
The Manufactured Rider Form is primarily used by various stakeholders in the real estate market, including:
- Homebuyers: Individuals purchasing manufactured homes who want to secure financing.
- Lenders: Financial institutions that require the rider to protect their investment in the property.
- Real Estate Agents: Professionals who assist clients in navigating the complexities of manufactured home transactions.
- Legal Professionals: Attorneys who provide guidance on real estate transactions involving manufactured homes.
Steps to Complete the Manufactured Rider
Completing the Manufactured Rider Form requires careful attention to detail. Here are the steps to follow:
- Gather Necessary Information: Collect all relevant details about the manufactured home, including specifications and legal descriptions of the property.
- Fill Out the Form: Enter the required information accurately, ensuring that all fields are completed.
- Sign and Date: Both the borrower and lender must sign and date the form to validate it.
- Attach to Mortgage Documents: Ensure the rider is attached to the mortgage or deed of trust before finalizing the transaction.
Important Terms Related to the Manufactured Rider
Familiarity with key terms associated with the Manufactured Rider Form can enhance understanding and compliance:
- Affixation: The process of permanently attaching a manufactured home to a foundation.
- Real Property: Land and anything permanently attached to it, including buildings and structures.
- VIN (Vehicle Identification Number): A unique code used to identify individual manufactured homes.
- Mortgage Modification: The process of changing the terms of an existing mortgage to include additional security, such as a manufactured home.
