February 23, 2022
FHA home loan options include loans for manufactured housing, modular homes, and what some still refer to as “mobile homes”.
FHA home loan rules for manufactured housing include age and foundation requirements as well as minimum sizes. If you aren’t sure how to proceed when trying to apply for a manufactured home loan, here are some common questions asked about these types of FHA mortgages.
Are FHA Manufactured Home Loans The Same As FHA 203(b) Mortgages?
Not exactly. The FHA loan program allows the purchase of a modular home or a manufactured home that is not on a permanent foundation at the time of creation. The manufactured home must be placed on a permanent foundation as a condition of loan approval and the timing of this must be agreeable to the lender.
Typical suburban homes are already on a foundation, so the issue for those loans has more to do with whether that foundation is in good condition and meets building code.
Manufactured homes must also be placed on an approved foundation and in cases where the manufactured home must be delivered from a plant or dealership, it generally must proceed directly to the installation site.
Do FHA Manufactured Home Loans Require The Home To Be Brand New?
No, you do not have to purchase a brand-new manufactured home according to FHA loan rules. That said? The home cannot be manufactured prior to June 15, 1976.
All mobile, manufactured, and modular homes must have a HUD Certification Label or feature label verification on display “evidencing the house was constructed on or after June 15, 1976, in compliance with the Federal Manufactured Home Construction and Safety Standards” according to HUD 4000.1
Is There A Size Requirement?
Yes. Your FHA lender will require the FHA manufactured home to be at least 400 square feet as the minimum acceptable size–that is 400 feet of “total floor area” and not necessarily the exterior diameter of the property.
Is A Permanent Foundation Required?
Yes. A mobile home that is to be purchased with an FHA mortgage must include being permanently attached to a foundation which must meet minimum standards found in a guide known as the Permanent Foundations Guide For Manufactured Housing.
FHA loan rules in this area are non-negotiable and no exceptions are provided for; the foundation requirement is one reason why no FHA loans are available for recreational vehicles which are often thought of as “mobile homes” but have no foundation.
You cannot apply for an FHA mortgage to purchase a vehicle like an RV that may mimic the features of a manufactured home but cannot be placed on a foundation.
Why Can’t I Find An FHA Manufactured Home Loan?
Some areas do not have much demand for manufactured homes, and not all participating FHA lenders offer these mortgages. Shopping around for a lender is always a good idea, but in cases where lenders are scarce, it’s even more important.
Can I Buy A Tiny House With A Manufactured Home Loan?
FHA square footage requirements (see above) apply for all mobile/manufactured homes.
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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