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In our scenario, we have a customer who is buying a “Tiny House” from a manufactured home dealer. The purpose is to place the tiny house on family land to use for a vacation home. We aren’t taking the land as collateral but the tiny house will remain immobile. I contacted the HMDA help desk and received a “maybe, maybe not” non-answer.
I am leaning more toward treating this as a mobile home only loan, but the loan officer is wanting to treat it as a rv loan. Thoughts?
I don’t think there is any concrete answer that you will find on this so you may have differing opinions from examiners that look at this. With that in mind, I would consider it a dwelling and believe treating it as a mobile home would be fine. Keep in mind that even though it is a dwelling, it may not meet the definition of a manufactured home under Reg C.
Interesting question. I agree with Robin’s comments. Assuming it does not meet HUD’s definition of “manufactured home,” I suggest reporting it as:
> Purpose – Code 1 – Home purchase
> Property Type – Code 1 – 1-4 family dwelling
> Owner Occupancy – Code 2 – Not owner-occupied as a principal dwellingRV loan – really?
I agree reporting as a home purchase loan as well (HMDA defines dwelling as a residential structure WHETHER OR NOT attached to real property), not owner-occupied (since it wont be their primary dwelling, but will be used as a secondary dwelling).
Your description doesn’t appear to fall into the “RV” category since the tiny house is immobile. While not a REGULATORY definition of a tiny house, I did find this site which begins to tell you when a tiny house is considered a dwelling versus an RV (per THEIR definitions of themselves), at: TinyHouseCommunity.com/FAQ.htm. It says: “legally, a tiny house on wheels is considered an RV, and a tiny house on a foundation is considered an accessory dwelling unit (ADU).” It might help to have that page printed for your file though.I think you will need to gather all of the deminsions and attachments and set-up of the tiny house before even beginning to analyse if you would code it as a 1-4 family dwelling or as a manufactured home. Reg C points us to HUD’s definition and it outlines very specific requirements as shown below…
24 CFR 3280.2
https://www.gpo.gov/fdsys/pkg/CFR-2012-title24-vol5/xml/CFR-2012-title24-vol5-sec3280-2.xml
“a structure, transportable in one or more section which, in the traveling mode, is 8 body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein.”
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