June 11, 2021
FHA home loans are available for a variety of things including mobile homes, manufactured homes, and modular housing. What do you need to know about mobile home loans offered under the FHA program?
Mobile Home Loans Are Specific
The home you purchase with any FHA mortgage must be classifiable as real property, which means it must be taxable as real estate regardless of whether or not it is actually taxed in your state. Real estate refers to properties that have a permanent foundation. FHA loans for mobile homes are under the Title 1 program.
Mobile homes that will not be permanently affixed to a permanent foundation that meets FHA standards cannot be approved for an FHA home loan.
FHA Mobile Home Loans For Lot And Home
Yes, FHA mortgages can be approved to cover the cost of both the mobile home and land to place it on. Remember, the rules mentioned above about permanent foundations apply when you buy the lot and the home together–you must plan on having the home attached to a permanent foundation or the lender won’t approve your loan.
Mobile Homes May Cost Less Than Other Types Of Housing
This is one reason why mobile home loans are so appealing. Investopedia reports that the average price of a new mobile home / manufactured home (as of October 2020) is around $85,000. Single-wide mobile homes are closer to $60K and double-wides can run as high as $110,000 according to the Investopedia report. The lower price means a lower down payment and easier-to-afford mortgage payments.
Mobile Homes Have Unique Requirements
Mobile homes manufactured before June 15, 1976 cannot be approved for an FHA mortgage. Manufctured homes must have a floor space of 400 feet or more. Total floor areas smaller than 400 feet may not be approved for an FHA mortgage.
Mobile Home Loan Limits
In 2021, FHA mobile home loan limits in typical areas for a combination mobile home and land purchase is $92,904. The FHA loan limit for the mobile home alone in typical cost areas is $69,678. There is also an FHA loan limit for land-only purchases (intended to purchase and develop the lot for a mobile home rather than simply purchasing undeveloped land) which is $23,226.
The FHA maximum loan terms range from 15-20 years depending on certain variables according to FHA.gov:
- 20 years for a loan on a manufactured home (or on a single-section manufactured home and lot)
- 15 years for a manufactured home lot loan
- 25 years for a loan on a multi-section manufactured home and lot
Participating Lenders And FHA Mobile Home Loans
Not all FHA lenders choose to offer mobile home loans. Some may and some may not. You will need to shop around for a lender in order to find one with the best terms and conditions for your mortgage.
Learn About the Path to Homeownership
Take the guesswork out of buying and owning a home. Once you know where you want to go, we’ll get you there in 9 steps.
Step 1: How Much Can You Afford?
Step 2: Know Your Homebuyer Rights
Step 3: Basic Mortgage Terminology
Step 4: Shopping for a Mortgage
Step 5: Shopping for Your Home
Step 6: Making an Offer to the Seller
Step 7: Getting a Home Inspection
Step 8: Homeowner’s Insurance
Step 9: What to Expect at Closing
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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