What are the FHA Requirements for a Manufactured Home Mortgage Loan?

As you begin the task of financing a manufactured home purchase, you’ll discover an array of mortgage options. At Ma Williams we take pride in helping our customers through this often-confusing process, so you’ll always have a clear understanding of what each loan entails.

One of the more prominent options is a loan from the Federal Housing Administration, or FHA. They’ve been in the mortgage business since 1934, and specialize in helping low and moderate-income homebuyers acquire a safe and affordable house. At a time when some lenders refuse to handle manufactured home mortgages, the FHA provides thousands of such loans every year, for both new and existing homes and land/home unit purchases.

Is this the best loan for you? This may help you decide.

The Basics

To qualify for an FHA loan, manufactured homes must be the primary resident of the loan applicant, and have a minimum square footage of 400 feet.

For FHA to guarantee the loans, a home must be attached to a permanent foundation and hooked up to utilities. Some restrictions apply for older homes when they are moved to a new location. For example, a home in a park build in 1980 that is purchased and moved to private property is not FHA insurable. This is yet another reason to consider a new Ma Williams home over a used home.

There is also a requirement for homes to conform to Federal safety standards, but this will never be an issue with any of the top manufacturers represented by Ma Williams.

California Considerations

Some tenets related to FHA loans vary by state. In California, any additions or major modifications to a home must be approved by the Department of Housing and Community Development before being eligible for FHA financing. This is another hurdle that would not be a problem with a new home purchase from Ma Williams.

Some states also place limitations on home value to qualify for an FHA loan. Some are as low as $70,000. Fortunately, the higher home and property values common to California were taken into consideration, so that limits in the state are much higher. In Riverside, for instance, FHA loans can be approved for as much as $350,000.

The maximum loan terms for manufactured home lots is 30 years, and the FHA requires a minimum down payment of 3.5 percent.

Still have questions? Contact us, or visit our Financing page for more information and more mortgage options.