With the downfall of Taylor, Bean and Whitaker recently, many loan officers have been scrambling for lenders who will underwrite FHA loans on manufactured homes.
The good news is that there are still lenders underwriting these loans, so if you are in a manufactured home and need to refinance or purchase a home, there are still FHA loan programs available that lenders will lend money on.
There aren’t many lenders still lending money on manufactured homes, but there are a few… and lucky for all of us, we have more than one that is still lending money for FHA loans on manufactured home properties.
Of course, the same FHA guidelines still apply and just as a reminder, here are the general FHA rules for manufactured homes to be considered eligible for FHA financing:
- have a floor area of not less than 400 square feet;
- be constructed after June 15, 1976, in conformance with the Federal manufactured home construction and safety standards, as evidenced by an affixed certification label in accordance with 24 CFR Section 3280.8; (manufactured homes produced prior to that date are ineligible for insured financing);
- be classified and subject to taxation as real estate;
- the mortgage must cover both the manufactured unit and its site and shall have a term of not more than 30 years from the date amortization begins;
- built and remains on a permanent chassis;
- designed to be used as a dwelling with a permanent foundation built to FHA criteria; and
- the finished grade elevation beneath the manufactured home or, if a basement is used, the lowest finished exterior grade adjacent to the perimeter enclosure, shall be at or above the 100-year return frequency flood elevation.
Will manufactured home loans that are insured by FHA go away completely?
But they are still available as of today.