September 21, 2019

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FHA Home Loans For Manufactured Homes

FHA Home Loans For Manufactured Homes

Many borrowers want to know if there are FHA home loans for manufactured homes, modular homes, or mobile homes.

The short answer is yes, there are, but the FHA home loan program does feature some rules you should know before deciding on the right manufactured home for you.

FHA Loan Rules For Manufactured Homes: Permanent Foundation Required

FHA mortgage loan rules for manufactured housing (located in HUD 4000.1) include a requirement that the property is or will become attached to a permanent foundation that meets federal and state requirements.

FHA home loans cannot be made for any mobile home that cannot or will not be attached to a permanent foundation and FHA mortgages cannot be approved for recreational vehicles or houseboats.

Manufactured Home Age Requirements

Mobile homes and manufactured homes must be compliant with the section of HUD 4000.1 found on page 151 which says the home must, “have the HUD Certification Label affixed or have obtained a letter of label verification issued on behalf of HUD, evidencing the house was constructed on or after June 15, 1976, in compliance with the Federal Manufactured Home Construction and Safety Standards”.

FHA Loan Rules: Retailer Alterations To The Home After Purchase

The manufactured home manufacturer or seller is permitted to make alterations to the home before delivery, “but must carefully ensure that the change complies with the HUD Code”.

In cases where there have been changes to the home that do not comply with the HUD Code, the FHA home loan rules state clearly that it cannot be approved for a home loan.

In this particular case, “An alteration is defined as the replacement, addition, modification, or removal of any equipment or installation, after sale by a manufacturer to a retailer, but prior to sale by the retailer to a purchaser, that may affect the construction, fire safety, occupancy, or plumbing, heating or electrical systems of a manufactured home”.

FHA Home Loans For Mobile Homes: Rules For Relocation of the House

The HUD official site states “…it is crucial to check with the appropriate authorities having jurisdiction regarding transportation of manufactured homes and applicable zoning regulations regarding placement of the home.”

You may find that buying a manufactured home in another state or township includes certain rules for the transport and delivery of the home. But it’s not just getting the home from Point A to Point B: the FHA/HUD offcial site reminds borrowers, “A manufactured home should never be placed in a more restrictive wind, thermal, or roof load zone than that for which it was built.”

Ask a loan officer for more information if you are not sure how these rules may affect your home loan transaction.

Joe Wallace - Staff Writer

By Joe Wallace

August 29, 2019

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.

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