May 13, 2011
The rules for FHA insured loans have long included manufactured homes; the FHA recognizes that not all borrowers need or want a tradition suburban home, condo, or multi-family unit. Manufactured homes have their own unique requirements in order to be approved for FHA mortgages, and in order to be eligible for FHA financing, the home must meet these requirements to the letter unless otherwise specified in FHA loan requirements.
For starters, a manufactured home is not eligible for an FHA insured loan unless it has at least 400 square feet of floor space. It must be built upon and remain on a permanent chassis and foundation. That foundation must be considered permanent and meet FHA specifications.
The home must be classified as real estate, which goes back to the permanent foundation issue–a mobile home not on a foundation can’t be classified as “real property” in the eyes of the FHA or the lender.
FHA rules also state a manufactured home must, “…be constructed after June 15, 1976, in conformance with the Federal manufactured home construction and safety standards, as evidenced by an affixed certification label in accordance with 24 CFR Section 3280.8.” FHA rules add that a manufactured home built or produced prior to June 15, 1976 are ineligible for FHA insured financing.
The rules also establish a limit on how long the loan term can be. According to the FHA official site, “…the mortgage must cover both the manufactured unit and its site and shall have a term of not more than 30 years from the date amortization begins.”
There are even rules covering the history of the manufactured home. A borrower cannot be approved for an FHA insured loan on a manufactured home that was installed or occupied previously at a different location or site.
You can get more information on these rules and much more at the HUD Office of Manufactured Housing Programs at http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/mhs/mhshome or by calling: 1-800-245-2691.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
Browse by Date: