Can I buy a mobile home with an FHA mortgage? That’s a question on the minds of many not looking for a typical suburban house or a condo unit. FHA loan rules in HUD 4000.1, the FHA loan handbook, address the question of mobile home and manufactured housing purchases with an FHA mortgage.
FHA Loans Can Be Used To Purchase A Mobile Home Or A Manufactured Home
HUD 4000.1 includes instructions for the lender on processing FHA mortgage loans for mobile homes and manufactured housing. There are restrictions on the age of the mobile home; it must have been built on or after June 15, 1976 in order to qualify for an FHA mortgage loan. Additional lender standards in this area may also apply.
Mobile Home Requirements To Qualify For An FHA Mortgage
Mobile homes have a minimum size requirement. The home cannot be smaller than 400 square feet, and the home must have been designed as a single-family home. Mobile and manufactured homes must be built in accordance with federal guidelines found in the Federal Manufactured Home Construction and Safety Standards guide.
The home must be installed on a permanent foundation that meets local, state, and FHA requirements. The home must be transported directly from the manufacturer or dealer to the site where it will be installed on the permanent foundation.
The permanent foundation issue is a condition of loan approval-you cannot purchase a home without a foundation using an FHA mortgage. It’s understood that the mobile home will be transported to the site where it will be fixed to the foundation, but you will not be able to close the loan without addressing the foundation issue.
Alterations To The Mobile/Manufactured Home
If the manufactured home or mobile home has any alterations to it, they must meet FHA standards. According to HUD 4000.1, the following requirements apply:
If the additions or alterations were not addressed in the foundation certification, the Mortgagee must obtain:
-an inspection by the state administrative agency that inspects Manufactured Housing for compliance; or
-certification of the structural integrity from a licensed structural engineer if the state does not employ inspectors.”
Finding A Participating Lender
Not all participating FHA lenders will offer FHA mortgage loans for mobile or manufactured homes. Depending on your housing market, there may be a large number of lenders willing to help, or there may be fewer in areas where demand for mobile home loans is not high.
Don’t be discouraged when looking for a mobile home loan if you don’t find a lender right away; it may be that some lenders are focusing their efforts on other types of property.