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HUD Guidelines on NEW MANUFACTURED HOME With LAND AND CONSTRUCTION
Can FHA finance new manufactured home including land and development costs?
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When you buy a new manufactured home with land and construction using FHA-insured financing, specific HUD guidelines must be followed. Here is a summary:
HUD Guidelines for New Manufactured Homes with Land and Construction:
Eligibility Requirements:
Property Standards: The manufactured home should meet HUD’s minimum property standards, which include being permanently attached to a foundation that meets FHA requirements. The foundation must also comply with the Permanent Foundations Guide for Manufactured Housing in HUD Handbook 4930.3.
Manufactured Date: The house must have been constructed on or after June 15th, 1976, and bear a HUD Certification Label affixed to it somewhere (“HUD tag”) stating compliance with HUD Code standards.
Primary Residence: Borrower must use this property as their primary residence.
FHA Loan Types:
FHA Title II Loan (Single-Family Housing): This loan can be used to purchase both the manufactured home and the land on which it sits. However, the house has to be placed on a permanent foundation and classified as real estate.
FHA Title I Loan: This loan is commonly used to buy only the manufactured home without any land involved in the transaction, though less frequently than when land is included.
Combination of Land and Home:
Suppose you’re buying new land and your new manufactured home at once. In that case, loans must cover both these things by financing the acquisition cost of real estate and the costs related to building on permanent foundations. So before closing deals, houses should be fixed onto lands bought together into one parcel.
Construction Standards:
You must use brand-new, never-occupied mobile homes that are built according to local zoning laws and lot size restrictions and placed on lots meeting community development ordinances.