FHA Guidelines On Manufactured Home Loans For 2017

This BLOG On FHA Guidelines On Manufactured Home Loans Was Written By Gustan Cho

2017 FHA Guidelines On Manufactured Home Loans are released. FHA borrowers should get familiar with 2017 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. Here is the function of FHA:

  • FHA is a government agency under HUD
  • FHA role is to insure FHA Loans that are originated and funded by banks and private mortgage lenders who follow FHA Guidelines
  • In the event of FHA Borrower default and/or foreclosure, FHA will insure the defaulted FHA Loan
  • In order for FHA to insure FHA Lenders, the lender have needed to follow FHA Guidelines when the loan was originated
  • FHA will insure manufactured home loans under 2017 FHA Guidelines On Manufactured Home Loans Title I.

2017 FHA Guidelines On Manufactured Home Loans Requirements

Here are the basic requirements on 2017 FHA Guidelines On Manufactured Home Loans

  • HUD categorizes manufactured homes based on that the home is not build on site
  • In order for a manufactured home to be eligible for FHA Financing, the property needs to be build on or after June 15, 1976 and this must be certified with a red colored HUD label
  • All houses that is 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 on the exterior of each transportable section
  • There is a 400 square feet minimum size requirement on financing a manufactured home

Foundation Requirement With 2017 FHA Guidelines On Manufactured Home Loans

Manufactured homes are defined as real estate in certain states while other states classify them as personal properties.

Under 2017 FHA Guidelines On Manufactured Home Loans,  FHA has its own FHA Guidelines On Manufactured Home Loans.  Here are the 2017 FHA Guidelines On Manufactured Home Loans:

  • The manufactured home needs to be located at or above 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 is permanently installed to the home which includes water and sewage systems and if they are newly installed, they need to have a one year warranty by the manufacturer

Borrower Requirements To Qualify For Manufactured Home Loans

Here are the borrower requirements 2017 FHA Guidelines On Manufactured Home Loans:

  • Minimum down payment 3.5% down payment
  • Minimum 580 FICO 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 borrower has over 620 FICO Credit Scores
  • FHA does not require you pay off 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
  • The Gustan Cho Team does not have any lender overlays on FHA Loans, VA Loans, USDA Loans, and Conventional Loans and are experts in originating manufactured home loans

Qualify For Manufactured Home Loans With No FHA Lender Overlays

Manufactured Homes are becoming more and more popular nationwide. Demand for manufactured home loans is increasing because many home buyers are realizing that manufactured homes are more of a practical solution, especially for first time home buyers and home buyers who are looking for homes that needs to fall into their budget. Over 70% of the borrowers that come to The Gustan Cho Team are borrowers who are either going through a major stressful mortgage process or gotten 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 officer.

If you have any other questions on manufactured home loans or any other loan program, please contact Gustan Cho at 262-878-1965 or you can text Gustan Cho at 262-716-8151 for faster response. You can also email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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