FHA Guidelines On Manufactured Home Loans On Purchase
This BLOG On FHA Guidelines On Manufactured Home Loans On Purchase Was UPDATED And PUBLISHED On February 9th, 2020
FHA Guidelines On Manufactured Home Loans are released:
- Buyers of manufactured homes should get familiar with FHA Guidelines On Manufactured Home Loans before entering into a real estate home purchase contract
- The United States Department of Housing and Urban Development is also known as HUD
- HUD is the parent of the Federal Housing Administration or FHA
- FHA is not a lender but a government agency
In this article, we will discuss and cover mortgage guidelines on manufactured homes.
Role Of Federal Housing Administration
Here is the function of FHA:
- FHA is a government agency under HUD
- Its role is to insure FHA Loans that are originated and funded by banks and private lenders who follow HUD Guidelines
- In the event Borrowers default and/or foreclosure, HUD will insure lenders
- In order for HUD to insure Lenders, the lender has needed to follow FHA Guidelines when the loan was originated
HUD will insure manufactured home loans under HUD Title 1 Loans.
FHA Guidelines On Manufactured Home Loans Requirements
Here are the basic requirements on FHA Guidelines On Manufactured Home Loans:
- HUD categorizes manufactured homes based on that the home is not built on site
- In order for a manufactured home to be eligible for FHA financing, the property needs to be built on or after June 15, 1976
- This must be certified with a red-colored HUD label
- All houses that are built after June 15, 1976, it needs to have a label
- In the event, if the label has been tampered and/or removed it cannot be replaced
- Double wide manufactured homes have two labels
- One of the exterior of each transportable section
There is a 400 square feet minimum size requirement on financing a manufactured home.
Foundation Requirement With FHA Guidelines On Manufactured Home Mortgages
Manufactured homes are defined as real estate in certain states while other states classify them as personal properties.
Under FHA Guidelines On Manufactured Home Loans, FHA has its own FHA Guidelines On Manufactured Home Loans.
Here are the FHA Guidelines On Manufactured Home Loans:
- The manufactured home needs to be located at or above the 100-year flood level on the location where the manufactured home sits on and the area
- The manufactured home needs to have a crawl space and/or basement that has proper ventilation
- Manufactured home needs to have utilities that are permanently installed to the home
- This needs to include water and sewage systems
If they are newly installed, they need to have a one year warranty by the manufacturer.
Borrower Requirements To Qualify For Manufactured Homes
Here are the borrower requirements FHA Guidelines On Manufactured Home Loans:
- Minimum down payment 3.5% down payment
- Minimum 580 Credit Scores
- Debt to income ratio 43% DTI if under 620 Credit Scores
- Debt to income ratio requirements are 56.9% DTI back end and 46.9% front end DTI if the borrower has over 620 FICO
- HUD does not require you pay off the outstanding collection and/or charge off accounts in order to qualify for manufactured home loans
- Non-occupied co-borrowers allowed with manufactured home loans with FHA
- Down Payments can be gifted by family members
- Gustan Cho Associates does not have any lender overlays on FHA, VA, USDA, and Conventional Loans
Gustan Cho Associates Mortgage Group are experts in originating manufactured home loans.
Qualify For Manufactured Homes With Overlays
Manufactured Homes are becoming more and more popular nationwide.
- Demand for manufactured home loans is increasing and becoming more and more popular
- This because many home buyers are realizing that manufactured homes are more of a practical solution
- This holds especially true for first time home buyers and home buyers who are looking for homes that need to fall into their budget
- Over 75% of our borrowers are folks who are either going through a major stressful mortgage process or get a last-minute loan denial by another lender
- The only reason for a last-minute loan denial or stress during the mortgage loan process is because the borrower was not properly qualified by their loan officers
If you have any other questions on manufactured home loans or any other loan program, please contact us at Gustan Cho Associates at 262-716-8151 or text for a faster response. Or email us at email@example.com. We are available 7 days a week, evenings, weekends, and holidays.