What you Should Know about FHA Mortgage Loan Rules for Manufactured Homes

Posted on Posted in Manufactured Homes
Manufactured Homes
Loans for Manufactured Homes

Many manufactured homeowners are not aware of the fact that FHA mortgage loans are available for more than condominiums and suburban homes. FHA mortgage loans can also be used for purchasing modular homes, mobile homes, and manufactured homes.

Most of the manufactured homes are usually sold and transported to the building site of the buyer in different sections. These segments are then assembled to make the manufactured home compete. However, it is significant to note that the homeowners will have to perform a few finishing works before moving into the new manufactured house.

However, many manufactured homebuyers wonder whether the assembly of manufactured homes counts as “construction” and would such a type of construction reclassify small manufactured homes in the eyes of the FHA. You must realize the fact that the FHA considers manufactured homes as quite different from existing or new construction properties.

As per the FHA rules, a manufactured home differs from a newly built construction project because of the nature of its assembly. Newly constructed housing structures are usually built “on-site”, whereas manufactured homes are built inside a factory-like setting.

FHA defines manufactured home structures 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.” These housing structures are actually regulated under a set of rules, which is popularly known as Federal Manufactured Construction and Safety Standards.

If you want to get FHA mortgage insurance for your manufactured home, then the first criterion to meet is that the housing structure should be built after June 15, 1976. In addition to that, you should also need a certificate label to prove that your manufactured home meets this specific criterion.

Another criterion to meet for acquiring an FHA mortgage loan is that the home space of your manufactured home should not be less than 400 square feet and it should be classified as real estate. If your manufactured home is built on a permanent foundation and if it is built according to the FHA standards, then you will be easily able to acquire a FHA mortgage loan for buying a manufactured house.

As per the FHA 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.”