Eclectic Homes

FHA Manufactured Home Rules

The Federal Housing Administration, or FHA, has been helping low- and moderate- income Americans find safe, affordable home since 1934. FHA loans are government-backed loans aimed toward helping those who fall through the cracks of traditional loan guidelines receive mortgages at fair prices and terms. 1 group of buyers who has difficulty locating mortgages is made (mobile) homebuyers, because most lenders will not finance this type of home. The FHA insures mortgage loans to get both based manufactured homes on permanent lots, new manufactured homes to go on owned lots and mix land/home unit purchase loans.

Characteristics

All lenders who offer FHA loans are required to fulfill at least the minimum standards set from the FHA. Some lenders may apply stricter guidelines than the FHA, but they may not discriminate against particular kinds of properties. To get a manufactured home to accommodate, it has to have a minimum square footage of 400 feet in ground area. This means that single-wide homes are not eligible for FHA loans. It has to be an owner-occupied residence, not a rental.

Identification

Manufactured homes must be constructed after June 15, 1976 and conform to Federal security standards to be eligible for an FHA loan. Homes built after this date which meet the standards will have a certification label with an identification number attached to the house. Throughout the evaluation, the appraiser will look for this label and apply the evaluation to it. The FHA will not insure a manufactured home loan that doesn’t have this number.

Considerations

The house has to be registered with the local municipality as actual home and be taxed as real property. This means that it has to be connected to a permanent basis and hooked up to utilities. In most areas, owners must strap the house to anchors or concrete pylons or bolt to a concrete base to be able to qualify it as permanently attached real property. The wheels may or may not remain, depending upon statute. The FHA requires a structural engineer to inspect the base to ensure it meets FHA criteria and sits above the 100-year flood mark.

Expert Insight

In California, when the house has improvements or changes to it, the nation’s Department of Housing and Community Development inspects and approves the changes to ensure they were completed correctly. If the state has not accepted the changes, then the residence will be ineligible for FHA financing. Not every state has this type of agency, therefore the FHA may send a certified engineer to inspect the changes prior to declaring the home eligible for financing.

Limitations

Manufactured homes have different maximum home worth than stick-built single-family homes. The maximum loan amounts are $69,678 for the house only, $23,226 to get just the lot and $92,904 for the great deal and the house; however, these amounts can be as much as 85 percent greater in areas with higher prices, according to the HUD site. The most loan terms for manufactured home lots run from 15 to 25 years, depending on the purpose of the loan. The FHA requires a minimal deposit of 3.5 percent.

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