Manufactured Homes for All Types of Mortgages

Manufactured Housing and Standards

The term "manufactured home" was adopted in 1980 by the U.S. Congress to describe a type of house that is constructed in a factory to comply with a building code developed by the Department of Housing and Urban Development (HUD).  

Since mid-1976, all manufactured homes have been constructed to meet the federal building standards adopted and administered by HUD. This national code is called the National Manufactured Home Construction and Safety Standards. The code regulates manufactured home design and construction, strength and durability, fire-resistance, and energy-efficiency. It also prescribes the performance standards for the heating, plumbing, air conditioning, thermal, and electrical systems. 

According to FHA rules, a manufactured home differs from a new construction project because of the nature of its assembly. New construction property is built "on-site". FHA defines a manufactured home as "a structure that is transportable in one or more sections. In traveling mode, the home is eight feet or more in width and forty feet or more in length." 

Some buyers may wonder if the assembly counts as "construction", and would such "construction" reclassify the manufactured home in the eyes of the FHA? Here are the parameters: 

Guidelines for Borrowers with Manufactured Homes

To be eligible for FHA mortgage insurance, the manufactured home must be built after June 15, 1976, and there must be a certification label to prove it. Here are the parameters:

*You must own the land.

* Manufactured home floor space cannot be smaller than 400 square feet and must be classified as real estate.

* The home’s floor area must be no less than 400 square feet (in 2010, the average size was 1,515 square feet).

* The structure must be built and remain on a permanent chassis, and it must be connected to the foundation through welds, bolts, and various light guage metal plates.

*The home must have a seal that shows it has been constructed in conformance with Federal Manufactured Home Construction and Safety Standards. If your home was constructed after 1990, it will have this seal.

* The finished grade elevation beneath the manufactured home or, if a basement is used, the lowest finished exterior grade adjacent to the perimeter enclosure, shall be at or above the 100-year return frequency flood elevation.

* The home must be classified and taxed as “real estate” and cannot have been installed or occupied previously at any other site or location.

Are Manufactured Homes Safe?

Manufactured homes are designed and built to comply with construction code that takes into consideration wind safety requirements and snow loads for the area in which the home will be located to make sure each home is strong and durable.

Following the construction of manufactured homes, there is an internal inspection process both during and after the construction of the home to certify that the HUD Code was followed properly. This inspection process is done to ensure that the home has been built to the correct standards for the zone it will be placed in.  Although there are many considerations builders keep in mind to ensure manufactured homes are safe, just like with site built homes and other buildings, extreme elements may still cause damage to your manufactured home. If you live in an environment known to have extreme weather, check with local experts on how you can prepare your home for extreme weather.

NOTE: All FHA loans must have an FHA home inspection completed before closing by a licensed FHA inspector that will verify that the home meets HUD standards. FHA is an option for manufactured home purchases and refinances with many lenders. 

Hud Requirements - These are guidelines and regulations. It is not necessary you read them all. If you are doing a refinance, however, your home must be in accordance with FHA guidelines.   This is an exhaustive guidebook from HUD which can be helpful in regard to manufactured homes and the regulations set forth by HUD. 

https://www.hud.gov/program_offices/administration/hudclips/guidebooks/4930.3G 

Question:  Can You Do a Reverse Mortgage on a Manufactured Home? 

Yes, the FHA HECM (reverse mortgage) includes home types such as manufactured homes (double wide) and factory-built housing. 

 Will HUD issue certification labels (HUD tags) if my home was built before 1976?No. The Department will not issue tags for a manufactured (mobile) home constructed prior to the enforcement of the Manufactured Home Construction and Safety Standards, effective June 15, 1976.