Did you know that it’s possible to finance a mobile home or manufactured home with an FHA loan? If you’re in the real estate industry, you probably did but if you’re reading this as a consumer you probably did not know that! Mobile homes are generally much lower cost than convention stick-built construction and the FHA realizes that this affordable housing option is an important demographic to hit.
Traditionally, mobile home loans come in two varities: those that are treated as a conventional mortgage and those that are treated as a personal property loan (like a car or RV loan). FHA Home Loans only cover the former which operate just like a mortgage on a normal home that is purchased with FHA financing.
Wondering if the mobile home you’re looking at might qualify for FHA loan financing? Here’s a list of the main criteria the home most meet:
- The home must be built to standards that conform to the Federal Manufactured Home Construction and Safety Standards handbook.
- The home was built after June 15, 1976.
- The home is taxed as real estate.
- The home must not have ever been installed at another location.
- The financing must encompass both the mobile home and the land that it is affixed to.
- The home must be permanently attached to a foundation.
- The home must not have any axles attached.
- The home must have proper covering between the living space and foundation to prevent decay.
If you’re looking for more on conventional FHA loan requirements check out my site.
