I will be brief. I have a mobile home built 1973 (before the big HUD changes) that has what can only be described as a house built around it. It has a brick "skirting", a 2x4 exterior wall (that wraps around the metal siding), and a rafter roof slapped on top. However, my realtor says because it's still on a metal frame and has the doors/windows/ceilings of a mobile home it will be classified as such and traditional financing won't touch it. I know that a mobile home that has not been placed on a foundation will not be considered but I thought that was because it's still technically movable. This is very much NOT movable. You would destroy the home trying to move it.
As an aside this home is on 3 acres of land that will be included in the purchase. The county classifies it as a traditional home, not a mobile home.
Not sure if this helps or not, but in most states you can surrender the title, declare it to be permanently affixed to the land, and it becomes real property and no longer a mobile home.
The realtor is correct the home is going to be classified as a manufactured/mobile home due to the public records. The appraiser will also note the properties structural description and generally take pictures of the crawl space/foundation. If it was built after June 1976 it will be tuff to get financing as traditional will not touch that year. How ever you can find actual mobile/manufactured financing for younger years. It's kind of like putting a Corvette body over a Honda....it's still a Honda.
The banks have to look at the foundation and the structural integrity of the home. They also have to evaluate for secondary market reasons to meet Fannie/Freddie guide lines to sell the loan and securitize the MBS. If not the lender/bank will be buying it back and holding it on their warehouse line or selling it at discounted costs.
If the title has been surrendered the it’s real property