1. Approval of the Manufacturer:
The manufactured home must be built by a manufacturer who is approved and licensed by the U.S. Department of Housing and Urban Development (HUD).
2. Certification Label:
To qualify for FHA-insured financing, the manufactured home must have a HUD certification label affixed to each transportable section at the time of manufacture.
3. Installation Requirements:
Before purchasing the manufactured home and applying for financing, homeowners must ensure that all installation requirements are met, such as having an appropriate foundation, wind zone rating, fire safety protection, and more.
4. Property Eligibility:
The location of the manufactured home will determine its eligibility for FHA financing; the home must be situated in a HUD-approved land-lease community or on an approved permanent foundation on a property that is owned by the borrower.
5. Home Age:
The manufactured home must have been built after June 15, 1976, and it cannot have been moved more than once since then.
6. Maximum Loan Amount:
The maximum loan amount for FHA-insured financing of a manufactured home is determined by the lesser of either the appraised value of the home plus any additional costs associated with installation, or 95% of the cost of the home plus installation costs.
7. Down Payment Requirements:
Borrowers may be required to make a down payment depending on their credit profile, debt-to-income ratio, and other factors.
8. Mortgage Insurance Premiums:
To secure their loan, borrowers must typically pay an upfront mortgage insurance premium (UFMIP) and then a recurring fee each year (MIP).