February 12, 2016
One common question asked by some about the FHA single-family home loan program is whether an FHA mortgage can be used to purchase an RV-type mobile home or a houseboat.
The answer in both cases is no because a house boat or recreational vehicle/RV motor home cannot be affixed to a permanent foundation. Therefore they cannot be sold as “real property” under the law, which makes them ineligible for an FHA mortgage.
The lines between recreational vehicles and manufactured housing or mobile homes can be blurry sometimes–why do some people confuse an RV with a mobile home? Foundation issues and real property status aside, it seems to be due to the fact that some people live out of their RVs in a similar way to a mobile home–they can be used as a primary residence.
The Department of Housing and Urban Development has proposed certain changes to manufactured housing guidelines that would exempt RV-type vehicles from certain manufactured housing standards, and label them as a vehicle not to be considered a permanent or primary residence.
According to HUDNo.16-015, “HUDs proposed rule seeks to revise the exemption for recreational vehicles that are not self-propelled and is based upon a recommendation from an advisory committee made up of manufactured housing producers, retailers, consumers and the general public.”
“The Manufactured Housing Consensus Committee (MHCC) recommended that HUD define a recreational vehicle as one built on a vehicular structure, not certified as a manufactured home, designed only for recreational use and not as a primary residence or for permanent occupancy, and built and certified in accordance with either the National Fire Protection Association (NFPA) or American National Standards Institute (ANSI) consensus standards for recreational vehicles.”
HUD proposes to adopt the MHCCs recommendation with a specific modification, “to require certification with the updated ANSI standard, A119.5-15, and by including a requirement that units claiming this exemption prominently display a notice stating that the unit is designed only for recreational use, and not as a primary residence or permanent dwelling. This notice reflects the intent of the MHCC in its recommendation to draw a clear distinction between the two products.”
At this time, what we’re discussing is only a “proposed rule” and has not gone into effect, but it’s an important development in the eyes of those who seek a more clear definition between what constitutes manufactured housing intended to be a permanent, primary residence, and recreational vehicles designed for a more short-term type of use.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It is designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those sites. It is simple to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today:
http://www.fha.com/fha_loan_limits_widget
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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