Title 15 . Revenue

Chapter 151 . (Repealed)

Section 655. Mobile home loan program

15 AAC 151.655. Mobile home loan program

(a) The Corporation will, in its discretion and in accordance with and subject to the provisions of this section, purchase a loan to finance:

(1) the purchase of a mobile home;

(2) the purchase of a mobile home and the real property on which the mobile home is or will be located;

(3) the purchase of a mobile home and the refinancing of real property which is owned by the borrower and on which the mobile home is or will be located;

(4) the refinance of a mobile home and the purchase of real property on which the mobile home is or will be located; or

(5) the refinance of a mobile home currently owned by the borrower and financed by the Corporation.

(b) A loan under this section will be eligible for purchase by the Corporation if it meets the following criteria:

(1) the amount of the loan may not exceed the following:

(A) for a Type I mobile home loan, the limits for single-family residences in accordance with 15 AAC 151.020(c) (2); and

(B) for a Type II mobile home loan, $125,000 for loans secured by a mobile home located on fee simple land and $75,000 on all other Type II mobile home loans;

(2) in addition to the limitations contained in paragraph (1) of this subsection, the loan amount may not exceed the following:

(A) for a Type I mobile home loan the limits may not exceed those for a single-family residence in accordance with 15 AAC 151.020(c) (1), (4), (6), or (7);

(B) for a Type II mobile home loan, the loan amount may not exceed the lowest of:

(i) 85% of the sales price;

(ii) 85% of the value as described in paragraph (14) of this subsection; or

(iii) 95% of the lesser of the sales price or the value, as described in paragraph (14) of this subsection, if the loan is guaranteed by the VA, provided that the down payment plus the VA guaranty equals at least 25 percent of the lesser of the sales price or value as defined in paragraph (14) of this subsection;

(C) for a Type II mobile home loan secured by a new mobile home, the loan amount may not exceed 125 percent of the sum of the wholesale (base) price of the home and any affixed itemized options and affixed itemized specialty items as detailed by the dealer in a dealer's cost statement plus the charges for freight as evidenced in the freight bill of lading; the cost of set-up, skirting, and tie-downs may be included in the principal obligation in addition to the 125 percent sum;

(3) for a Type I mobile home loan, the term of the loan may not exceed 30 years; for each of the following types of loans, the term of the loan may not exceed the lesser of 70 percent of the estimated remaining economic life of the mobile home or the following:

(A) for a Type II mobile home loan secured by a new mobile home, a 10-year maximum term on single-wide units, and a 14-year maximum term on double-wide units;

(B) for a Type II mobile home loan secured by mobile home other than a new mobile home, a 7-year maximum term on single-wide units and a 10-year term on double-wide units; or

(C) for a loan described in 15 AAC 151.655(a) (5), the remaining term of the outstanding loan for the borrower's mobile home;

(4) the borrower must establish to the satisfaction of the Corporation in the loan application that he or she will occupy the mobile home as their primary residence;

(5) if the borrower owns another residence in the state, the borrower shall establish in the loan application that the other residence is not located in the same general area of the state as the borrower's mobile home;

(6) the value of personal property to be purchased with a Type II mobile home loan, if any, may not exceed $1,500;

(7) the loan must be secured by a security agreement on the borrower's mobile home and all other personal property and improvements on the premises, including but not limited to lean-to's, wanigans, and storage buildings and by a first deed of trust on the real property described in 15 AAC 151.655(a) (2) - (4);

(8) any first deed of trust securing a mobile home loan must be insured by a mortgagee's American Land Title Association policy of title insurance conforming to the provisions of 15 AAC 151.020(a) (6);

(9) for Type I mobile home loans mortgage insurance as required for single-family residences in the sellers' guide;

(10) for a loan described in 15 AAC 151.655(a) (2) - (4), the real property must be appropriate for the value of the mobile home and acceptable under applicable zoning ordinances and other laws for the placement of a mobile home;

(11) for a loan described in 15 AAC 151.655(a) (2) - (4), the instruments evidencing the loan shall provide that the loan for the mobile home and the loan for the real property constitute a single loan;

(12) for a Type II mobile home loan described in 15 AAC 151.655(a) (4):

(A) the loan amount must not exceed the sum of:

(i) 75 percent of the fair market value of the real property, or cost, whichever is less, as improved with access and water and sewage disposal systems;

(ii) 75 percent of the amount of reasonable relocation and closing costs; and

(iii) the amount outstanding on the mobile home loan (not to exceed 75 percent of appraised value, if not already financed by the Corporation);

(B) the mobile home must be fully set up on the lot and occupied as a principal residence by the borrower prior to purchase of the loan by the Corporation; and

(C) notwithstanding (A) of this paragraph, the loan amount may not exceed the limitations set forth in (1) and (2) of this subsection.

(13) for a Type II mobile home loan to purchase a mobile home located on rented land:

(A) if the rented land consists of a lot located in a mobile home park, the mobile home park must be acceptable to the Corporation, the mobile home and the borrower must not be in violation of the rules of the mobile home park, and the borrower must:

(i) if the mobile home was located in Alaska on or before December 31, 1984, submit an agreement, on a form prescribed by the Corporation, which establishes that the owner or lessor will provide at least one year's eviction notice to the tenant or borrower and to the Corporation before implementing a change in the land use of the property; or

(ii) if the mobile home was transported into Alaska on or after January 1, 1985, submit an agreement, on a form prescribed by the Corporation which guarantees a five-year continuous availability of the mobile home lot; however, the agreement will permit the owner/lessor to terminate the five-year space guaranty if the owner/lessor bears the full cost of relocating the mobile home to a site which the Corporation determines, in writing, provides a reasonable alternative site in terms of location, neighborhood and park quality in which to locate the mobile home.

(B) if the rented land is not a lot in a mobile home park, the borrower has a rental agreement which:

(i) is fully assignable to the Corporation without consent of the owner/lessor of the rented land;

(ii) restricts the ground rent to annual increases of no more than 10 percent per annum;

(iii) has a term no less than that of the loan; and

(iv) is recordable in the appropriate district recording office.

(14) the value of the collateral securing the loan will be established by the most recently published N.A.D.A. Mobile Home Guide Book, Manufacturer's Invoice VA Certificate of Reasonable Value, or other similar system as defined in the sellers' guide;

(15) the collateral securing the loan must have been inspected no more than three months before the loan application is submitted to the Corporation. The inspection shall have been:

(A) performed by an independent fee appraiser and completed on a form approved by the Corporation;

(B) completed after improvements to the property have been completed for existing units; and

(C) subject to a final inspection for units not set up on the site at the time of appraisal; and

(16) the mobile home securing the loan must have been inspected for, and have affixed to it, a United State Department of Housing and Urban Development seal for Zone 3 if the mobile home arrived in the state after January 1, 1985.

(c) For the purpose of determining the maximum financing allowed under 15 AAC 151.655(b) , the cost of real property is limited to the purchase price or amount refinanced and the direct costs paid to a party other than the borrower for providing permanent improvements including, but not limited to water, sewer, and access improvement.

(d) In this section:

(1) "borrower's mobile home" means:

(A) the mobile home the borrower will purchase with the loan if the loan is one described in 15 AAC 151.655(a) (1), (2), and (3); or

(B) the mobile home already owned by the borrower if the loan is described in 15 AAC 151.655(a) (4) or (5);

(2) "mobile home" means a mobile home which has at least 600 square feet of living area determined by measuring the exterior of the unit at the base but excluding the tongue of the unit and any lean-to's, wanigans, and the like;

(3) "new mobile home" means a mobile home that is purchased by the borrower within 24 months after the date of manufacture and has neither been titled or occupied for any purpose nor covered under a manufacturer's warranty; and

(4) "other than new double-wide" means a factory manufactured multi-unit module which excludes modified single-wides.

History: Eff. 5/7/93, Register 130

Authority: AS 18.56.088

AS 18.56.090

AS 18.56.099

Editor's note: Before Register 130, July, 1994, the substance of 15 AAC 151.655 was contained in former 15 AAC 118.283. The history note for 15 AAC 151.655 does not reflect the history of the section under its former number.