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Home FAQ

Manufactured Home Financing FAQs

1.  Can I finance a used mobilehome or manufactured home?

If you own the land and the home is newer than June 15, 1976 and the value is there, yes.    The home and land must also be considered real property.

2.  Should I buy a mobilehome from a dealer or use a real estate agent?

The only time you want to use a dealer is when you are buying a brand new home.   If the home is already existing, then the transaction should be completed by a real estate agent.

3.  Can I finance a singlewide manufactured home?

Yes, a single wide can qualify for FHA-insured financing on a manufactured home.

4.  What is the difference between a doublewide and a triplewide manufactured home?

A double wide consists of two sections, while a triplewide consists of three sections.   Each section is bolted together at the marriage or mating line and finished on the inside with paneling or dry wall.   There can even be 4, 5 and six sections.

5.  Are modular homes the same thing as a mobilehome or manufactured home?

No.   A manufactured home is delivered to site as a transportable section and has a permanent chassis.  Blocks or metal piers support the inner chassis which consists of metal beams.   A modular home does not have a chassis.   A manufactured home is a HUD home and has been designed and engineered in the factory and is considered pre-emptive in code requirements.   A modular home must conform to the individual local building jurisdiction requirements.   Therefore a manufactured home can usually be installed much quicker, less expensively and efficiently.

6.  Is it difficult to finance a manufactured home?

Manufactured homes have three tiers of qualification and if those are satisfied, financing should not be a problem.
  • a.  The home has to qualify with appraised value, has to be newer than June 15, 1976, cannot be located in a flood plain, can never have been sited on another location, must have HUD Tags and must be on a permanent foundaiton.
  • b.  The borrower must show sufficient credit worthiness.
  • c.   The home must be titled as real property.

7. Does my mobilehome have to be permanently affixed?

Your home has to be installed on a permanent foundation.   There are different qualifying characteristics but this must be left to the opinion of a professional engineer.  Don't go out and make repairs on your home prematurely because you might be wasting your money.   Being tied down does not automatically mean your home has permanent attachment that will meet the HUD Permanent Foundation Guide for Manufactured Homes.   Only the engineer can determine this.

8.  I need a fast turn-around time, can your team get it done?

If we have all the correct information and the qualifying information, this can be done quickly.  We have a very skilled team of loan officers that specialize in manufactured homes as well as in house government underwriters ready to assist you. We are fast because it's what we do!

9.  Can I use my loan to consolidate debt?

Absolutely. FHA allows you to receive cash out up to 85% Loan to Value. This cash can be used towards debt consolidation as well as home improvements.

10.   I currently have an FHA-insured loan.   What are my options?

If you are current in your payments, we will probably recommend the FHA Streamline.   In many cases you can forgo a new appraisal and can avoid the cost of the engineer's certification.   It's quick and easy.

11. Does an existing manufactured home (Title II) located in a floodplain qualify for FHA insurance, if the finished grade elevation beneath the home is below the flood elevation level?  What about with flood insurance?

All manufactured homes (new and existing) shall not be located within a FEMA designated Special Flood Hazard Area. The finished grade level beneath the manufactured home shall be at or above the 100-year return frequency flood elevation or be covered by a Letter of Map Amendment (LOMA) or Letter of Map Revision (LOMR) or an Elevation Certification (FEMA form 81-31). An Elevation Certificate must be prepared by a state licensed land surveyor, licensed professional engineer, or registered architect and completed on finished construction (not proposed or under construction), and reflect a finished grade at or above the 100-year return frequency flood elevation. When using an Elevation Certificate, the property is still located in a flood plain, and therefore, flood insurance is required.

For a list of the FEMA Flood load designations, refer to: this link

Q. What is a Good Faith Estimate?

A: As you January 1, 2010, the borrower must receive a summary of terms of the loan as well as the settlement costs. Many brokers are not even aware of all the requirements and legislation that went into effect and the Good Faith Estimate is not just a requirement, it is designed to protect the borrower.

Q. Does our condo park and association need to become approved by FHA or HUD before FHA reverse mortgages can be insured?

A. Yes. The HUD Mortgagee Letter issued new guidelines for manufactured housing that included eligibility for manufactured homes in condominium projects. According to the letter “all manufactured housing project approval requests must be processed by the Home Ownership Center (HOC) that has geographical authority over the property to be insured.”

Q. Why should our HOA consider getting HUD approval?

A. Without approval, individual homeowners in your park cannot obtain any FHA-insured loans which include Reverse Mortgages. Especially now, in the current mortgage crisis, FHA guaranteed loans are the principal means to qualify for and afford a low cost, low interest home loan. FHA loans can be used for home purchase (both forward and reverse). These loans may also be used by your current homeowners for the purchase of new manufactured homes to replace old units that do not qualify for FHA loans. In the current economy many homeowners are struggling to make ends meet.

Q. Does FHA/HUD require our HOA to carry the homeowner’s insurance policy on the individual units in our park?

A. No. The individual homeowner is responsible to carry his or her own insurance policy. In cases where the condominium homeowners association carries a blanket policy for the common areas that also covers the risk for individual units, that insurance would be acceptable (assuming adequate coverage).

Q. What is the reserve account requirement for FHA approval?

A. A current reserve study must be submitted with the application that shows that the reserve account is separate from the association’s operating account and that it is at least 60% funded.

Q. Can individual homeowners submit applications for reverse mortgages through a lender before the condominium approval is issued by HUD?

A. No. Individual reverse mortgage application case numbers may not be assigned until the condominium is placed on the approved list. Individual homeowner application dates must occur after the date the condominium is placed on the approved list.

Q. What are the foundation guidelines that must be met?

A. The standard foundation requirements of all other FHA-insured loans must apply which means an engineer's certification is required on every foundation.