FHA Mobile Home Loans
FHA loans are offered by participating lenders for mobile homes, manufactured homes, or modular homes. While not every participating lender chooses to offer these mortgages, plenty do and there will be opportunities for you to buy a mobile home with an FHA mortgage.
FHA Defines the Manufactured Home
Mobile homes are also known as manufactured homes. The FHA official site describes a mobile home as a property built "to the Manufactured Home Construction and Safety Standards (HUD Code) and displays a red certification label on the exterior of each transportable section".
Some manufactured or modular homes may be assembled on-site, while others may simply be transported in one piece to the place where it will be affixed to a permanent foundation.
The FHA official site definition of manufactured homes includes those which are built "in the controlled environment of a manufacturing plant" and are transported in one or more sections on a permanent chassis. FHA loan rules state that any mobile home must be affixed to a HUD-approved permanent foundation as a condition of loan approval so keep that in mind when hunting for the right mobile home and lot.
Some choose to buy land to place their mobile home on rather than renting in a lot--this is allowed under FHA loan rules.
Is There a Difference Between Manufactured Homes and Modular Homes?
FHA loan rules governing manufactured homes are found in HUD 4000.1; according to the FHA, manufactured homes are "constructed according to a code administered by the U.S. Department of Housing and Urban Development" and requires any manufactured home purchased with an FHA mortgage, to be sold on a permanent chassis.
But there are some differences between modular homes and other types of manufactured housing. In general, they are built under the jurisdiction of the same state, local or regional building codes as "site-built" homes. In any case, the modular home can be approved for an FHA mortgage if it meets FHA and lender requirements.
If There Are Installation Problems
When your FHA mobile home loan is approved and you purchase your mobile home, it will be delivered and installed if it is not already. Some encounter problems with the installation and need to know who to contact. In such cases, FHA/HUD are not the points of contact for such issues--you will need to contact the retailer and/or the installation contractor to resolve issues in this area. Borrowers should research the mobile home sellers they want to consider dealing with and be sure to read any user reviews, comments, etc.
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Insuring Mortgages With the FHA Funding Fee
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