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Commissioners discuss lender confusion over "mobile" versus "manufactured/modular" home terminology; staff say county definitions align with state law
Summary
A Madison County resident told commissioners on Aug. 4 that a lender declined refinancing after county records listed the residence as a "mobile home." County staff advised that the correct legal categories are "manufactured" or "modular" homes and offered to assist with documentation.
A homeowner raised a refinancing problem at the Aug. 4 meeting after a lender balked at financing when the county valuation office identified the dwelling as a "mobile home." Commissioners and staff discussed whether county terminology could be confusing to lenders.
County staff and legal counsel reviewed the matter on the record, explaining that under state and federal law the appropriate terms are "manufactured home" (built to the federal HUD Manufactured Home Construction and Safety Standards Act of 1974) and "modular home" (built to state/local building codes). Staff said the county had updated ordinance and tax definitions after prior legal questions to avoid confusion and that "mobile home" is not a defined legal category in current law.
Staff recommended that any lender with concerns be put in touch with valuation and permitting staff to confirm classification and to provide documentation showing whether title has been retired and whether a home is taxed as real property; staff noted that financing pathways differ depending on whether the title remains personal property or has been retired and recorded as real property.
Why it matters: Lender underwriting practices can be affected by classification of factory-built housing; county staff advised owners and lenders to consult county valuation and permitting records and said staff will assist where possible to resolve documentation issues.
