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Does HUD Require Manufactured Homes To Be on a Permanent Concrete Foundation
Manufactured Homes and Modular Homes are becoming very popular. What are the requirements for manufactured homes and modular homes to be eligible for FHA loans?
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Manufactured homes and modular homes can be eligible for FHA (Federal Housing Administration) loans, but there are specific requirements they must meet to qualify. Here are some key criteria:
HUD Certification: The home must meet the HUD (Department of Housing and Urban Development) Code for manufactured housing and have a HUD Certification Label affixed to it. This label certifies that the home meets the necessary construction and safety standards.
Permanent Foundation: For manufactured homes, they must be affixed to a permanent foundation that meets FHA guidelines. This foundation typically includes a concrete pad or piers anchored to the ground.
Property Standards: Both manufactured and modular homes must meet FHA’s property standards, which include requirements for safety, security, and structural soundness.
Age Restrictions: For manufactured homes, they must have been constructed after June 15, 1976, to be eligible for FHA financing. Homes built before this date do not meet the HUD Code standards.
Location: The home must be located on a lot or in a community that complies with FHA guidelines. This typically means the property must be zoned for residential use and meet certain infrastructure requirements.
Appraisal: An FHA-approved appraiser will assess the home to ensure it meets FHA standards for value and condition.
Credit and Income Requirements: Borrowers must meet FHA’s credit and income requirements to qualify for the loan. This includes having a steady income and a credit score that meets FHA standards.
Loan Limits: FHA sets loan limits for the maximum amount that can be borrowed, which can vary by location. The loan amount for the manufactured or modular home must fall within these limits.
It’s important to note that FHA requirements may change over time, so it’s advisable to consult with a lender or FHA-approved housing counselor for the most up-to-date information and to determine eligibility.