Does an FHA Loan Cover Manufactured Homes?

Whether youre a first-time homebuyer, moving to a new home, or want to refinance your existing conventional or FHA mortgage, the FHA loan program will let you purchase a home with a low down payment and flexible guidelines.580 Credit Score- and only -3.5% Down RELATED ARTICLES

FHA loan limits were established to define how much you can borrow for a HUD-backed mortgage. Each state has different limits, so be sure to look up your state to understand what is available for your FHA home loan.

For , the FHA floor was set at $498,257 for single-family home loans. This minimum lending amount covers most U.S. counties. The FHA ceiling represents the maximum loan amount and is illustrated in the table below.

Also for 2024, the FHA ceiling was set at $1,149,825 for single-family home loans. This represents the highest amount that a borrower can get through the FHA loan program. It applies to high cost areas in the United States and is illustrated in the table below.

Paying the upfront costs of buying a new home can be challenging. To help overcome this hurdle, many local and state agencies offer down payment assistance in the form of grants or second mortgages.

Manufactured homes, also known as mobile homes, provide an affordable housing option for many buyers. With a manufactured home, you can own a spacious residence without spending a fortune. However, financing a manufactured home can be tricky. Thankfully, FHA loans offer a solution.

What is a Manufactured Home?

A manufactured home is a prefabricated house constructed in a factory before being transported to your property. It is also commonly called a mobile home. To qualify for FHA financing, the home must:

Be built after June 15, 1976 according to HUD code
Have a HUD certification label attached
Have at least 400 sq ft of living space
Be attached to a permanent foundation
Have access to water, sewer, and utilities

Manufactured homes come in single, double, or triple wide floor plans. They provide an affordable way to own a home, often ranging from $50,000 to $100,000.

FHA Loan Options for Manufactured Homes

FHA loans help make manufactured home ownership possible for buyers with low down payments and lower credit scores. There are two types of FHA loans that apply to manufactured housing:

FHA Title I Loan

Can finance a used manufactured home without land ownership
Maximum loan amount is $92,904
Requires 10% down payment for borrowers with credit scores below 580
Loan term up to 20 years, or 25 years with an extension

FHA Title II Loan

Requires the home be placed on land owned by the borrower
Lower down payment of 3.5% with a minimum 580 credit score
Maximum financing up to $970,800 depending on local limits
30 year loan term

With either loan program, the manufactured home must be on a permanent foundation and classified as real estate. Foundation inspections are required prior to loan approval.

Manufactured Home Loan Requirements

Here are some key criteria to qualify for an FHA manufactured home loan:

Credit score – Minimum 500 credit score required, with higher scores receiving better terms
Down payment – 10% down with credit scores below 580, or 3.5% down with 580+ credit
Debt-to-income ratio – Maximum backend DTI of 43%
Occupancy – Must be owner-occupied as primary residence
Home requirements – Home must be built after 1976 and have HUD certification label
Foundation – Home must be permanently fixed on a foundation on land owned by borrower

As with all FHA loans, you’ll need to pay an upfront mortgage insurance premium and ongoing monthly premiums. But this provides access to low down payment options.

Pros and Cons of FHA Manufactured Home Loans

Pros

Low down payments, starting at 3.5%
Available for lower credit scores
Loan amounts up to $970,800 in certain areas
Long term loans up to 30 years

Cons

Require mortgage insurance premiums
Limited availability from some lenders
Slower financing process than conventional loans
Lower appraised values than site built homes

While FHA financing opens doors for buyers, manufactured homes may be harder to resell later. They often appreciate slower than site built homes.

Tips for Getting Approved

If you’re considering an FHA loan for a manufactured home, here are some tips:

Shop with lenders familiar with manufactured housing – Not all lenders approve these loans, so look for ones experienced with FHA programs
Highlight stability – Underwriters want to see a stable job history and income
Get your paperwork ready – Having payroll stubs, W2s, and statements prepared makes approval faster
Inspect the home carefully – Be sure the home meets HUD standards and is properly installed
Check your foundation – Confirm proper foundation and inspections are complete

With the right lender, an FHA loan can make your dream of owning a manufactured home come true. These affordable residences provide a stepping stone to homeownership.

Finding an FHA Manufactured Home Lender

The first step is connecting with lenders comfortable doing FHA loans for manufactured housing. While FHA approves these loans, each lender makes their own policies.

Look for lenders like FHA Lenders and Rocket Mortgage who regularly work with manufactured home buyers. They understand the FHA guidelines and property requirements.

Reach out to discuss your scenario and property. They can provide custom quotes for both FHA Title I and Title II loans. Then you’ll know exactly what loan programs you qualify for.

Owning a home is possible even on a modest budget. With an FHA manufactured home loan, you can finally stop renting and enjoy your own affordable house. Let a specialized lender guide you through the process.

FHA Loan Programs for 2024

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Single	Duplex	Tri-plex	Four-plex
FHA Limits (low cost areas)
$498,257	$637,950	$771,125	$958,350

Single	Duplex	Tri-plex	Four-plex
FHA Limits (high cost areas)
$1,149,825	$1,472,250	$1,779,525	$2,211,600

Paying the upfront costs of buying a new home can be challenging. To help overcome this hurdle, many local and state agencies offer down payment assistance in the form of grants or second mortgages.

FHA Mobile Home Requirements

FAQ

What is the oldest manufactured home for FHA loan?

To qualify for an FHA loan, a manufactured home must have been built later than June 15, 1976, and adhere to certain building standards and government guidelines. The maximum FHA mobile home loan amount is $92,904.

What does FHA consider a permanent foundation for a manufactured home?

For example: The United States Department of Housing and Urban Development (HUD) suggests that permanent foundations are meant to be site-built and constructed of durable materials such as concrete, treated wood or mortared masonry.

What is the minimum acceptable size for a manufactured house for an FHA insured loan?

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.

Who is the best lender for manufactured homes?

Company	Starting Interest Rate	Loan Terms (range)
Manufactured Nationwide Best Overall	Varies	15, 20, or 30 years
ManufacturedHome.Loan Best for Good Credit	Varies	Varies
21st Mortgage Corporation Best for Bad Credit	Varies	Varies
eLend Best for Low Down Payment	Varies	Varies

Can I buy a manufactured home with an FHA mortgage?

Buying a manufactured home with an FHA mortgage is definitely an option for those who qualify. But the home must meet minimum FHA requirements as well as state or local code. FHA home loan rules for manufactured housing don’t just list the credit score requirements and other financial qualifications needed to approve the loan.

Can you finance a mobile home through FHA?

If you’re looking for an alternative to a traditional, site-built home, you may want to consider financing a mobile home through the FHA manufactured home loan program. Sometimes called an FHA loan for a mobile home, this government-backed mortgage option allows borrowers with imperfect credit to purchase an affordable home.

What is an FHA manufactured home loan?

An FHA manufactured home loan is a mortgage backed by the Federal Housing Administration (FHA) that you can use to purchase a home built in a factory. If you need to, you can also use the loan to buy a plot of land for the home to sit on. You may know this type of house as a “mobile home,” but that isn’t the term used by the FHA today.

Can a mobile home be too small for an FHA loan?

Then there’s a size restriction–your new home cannot be too small. HUD 4000.1 says your manufactured home must have a floor space of 400 feet or more to be approved for an FHA mortgage. And what about FHA loan limits for mobile homes?