Archive for the ‘Manufactured Home Loans’ Category

Manufactured Home Loans with FHA

March 23rd, 2011
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Many people are unaware that FHA offers manufactured home loans.  Many home buyers and existing homeowners run into obstacles when trying to secure financing for mobile, manufactured and modular home financing.  FHA home loans are available for manufactured homes that meet the FHA guidelines that outline the specifics for eligible property types.  FHA mortgage loans can also be used to finance modular and manufactured homes and the FHA rates are affordable.  Borrowers in many rural areas are in desperate need of affordable modular home loan programs.

HUD defines a manufactured house differently than new or existing construction properties.  According to FHA rules, a manufactured house varies from a new construction project because of the nature of its assembly. New construction property is built “on-site”.  The Federal Housing Administration considers manufactured house 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.”

Finance a Low Rate Manufactured Home with FHA

These homes that are eligible for FHA loan programs are regulated under rules known as Federal Manufactured Construction and Safety Standards and must be labeled accordingly. To be eligible for FHA home loans, the manufactured home must be built after June 15, 1976 and must contain a certification label that documents the date the home was built. The floor space for manufactured homes cannot be less than 400 square feet and must be classified as real estate.

According to HUD, the only manufactured house that may be classified as real estate or “real property” are those which have a permanent foundation built to FHA standards. They must be considered a “permanent dwelling” or the house is considered personal property which affects the tax deductibility and the eligibility for FHA loan programs.  According to FHA loan requirements, “the mortgage must cover both the manufactured unit and its site and shall have a term of not more than 30 years from the date amortization begins.”


FHA Guidelines, Manufactured Home Loans