September 11, 2018
FHA home loans are for a variety of different property types. Manufactured homes are one of the property types you can purchase with an FHA mortgage, but like most other home loans the home you want to buy must meet FHA standards.
FHA Home Loans For Mobile Homes: Find A Participating Lender
FHA mortgages for mobile homes and manufactured homes are not always available since some participating FHA lenders choose not to offer them.
The nature of a given housing market, buying or selling trends, and the quality of the manufactured homes / mobile homes in the area may all contribute to a lender’s decision to offer or not offer a mobile home loan. You may need to shop around for a participating lender who can help. You can also fill out an online form at FHA.com to be put in touch with a participating lender who can help with an FHA mobile home loan or manufactured home loan
Manufactured Homes And FHA Loans: Minimum Requirements
Homes to be purchased with an FHA mortgage that are NOT mobile homes or manufactured homes do not have some of these requirements but the unique nature of a mobile home or manufactured house means certain requirements will definitely apply:
- The mobile home, modular home, or manufactured home must not be smaller than 400 square feet of total floor area.
- The home must be classifiable and taxable as real estate or real property even if no taxes are paid on such properties.
- The home must be taken directly from the manufacturer and placed on an FHA-approved permanent foundation
- The home must be NO OLDER than June 15, 1976.
- The manufactured home must have a HUD certification label or its’ equivalent affixed or have a copy of a certification letter stating the home’s age and that it meets the minimum age requirement listed above.
FHA Loans For Mobile and Manufactured Housing: The Permanent Foundation
Foundation requirements for FHA loans on mobile homes and manufactured housing are clear; the foundation must meet minimum standards. The FHA loan rulebook, HUD 4000.1, instructs the lender that she or he must, “…obtain a certification by an engineer or architect, who is licensed/registered in the state where the Manufactured Home is located, attesting to compliance” with FHA minimum foundation requirements.
FHA Loans For Mobile Homes In Special Flood Hazard Areas
HUD 4000.1 is quite specific about mobile home loans for manufactured homes or mobile homes at or near a 100-year flood zone. It tells the lender;
“The finished grade level beneath the Manufactured Home must be at or above the 100-year return frequency flood elevation. If any portion of the dwelling, related Structures or equipment essential to the Property Value and subject to flood damage for both new and existing Manufactured Homes are located within (a Special Flood Hazard Area), the Property is not eligible for FHA mortgage insurance…”
This is true UNLESS your participating FHA lender obtains either a FEMA-issued letter removing the property from the designated Special Flood Hazard Area or the lender obtains a FEMA National Flood Insurance Program (NFIP) Elevation Certificate (FEMA Form 81-31) prepared by a licensed engineer or surveyor “…stating that the finished grade beneath the Manufactured Home is at or above the 100-year return frequency flood elevation…”
In such cases, National Flood Insurance Program insurance may be required.
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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