Having worked in the business with both Borrowers and Lenders, the most common complaint from the Borrower is “Why didn’t my loan officer or processor tell me everything I needed right from the start?”  I

Whether you are a Borrower seeking a manufactured home loan or a lender trying to provide one, REMEMBER the Manufactured Home has to QUALIFY as well as the Borrower and the Appraisal Value.

Here is a basic checklist for ALL FHA-insured loans:

• Built after June 15, 1976. No exceptions are allowed!    Even if an older home has been completely renovated, it cannot qualify.
• Engineer’s Certification Report. Must state property meets the guidelines published in the Permanent Foundations Guide for Manufactured Housing, dated September 1996.
• Structural Modifications or Additions. Engineer’s Certification Report indicating that the structural changes or additions to the property were made in accordance with the HUD Manufactured Home Construction and Safety Standards
• The home has never moved off original site. The manufactured unit must not have been installed or occupied previously at any other site or location. Manufactured units may be moved only from the manufacturer’s or dealer’s lot to the site on which the unit will be insured.
• All HUD Labels (Tags) are indicated. All manufactured homes must have an affixed HUD label (tag) located on the outside of the home. If the home is a multi-wide unit, each unit must have a label. Without a HUD Label, an acceptable alternative is a Label Verification from IBTS.   For assistance in obtaining information for a request of label verification, you can contact www.ibts.org.
• Taxed as Real Property. The manufactured home must be taxed as real property. Also Title should provide the manufactured home endorsement applicable to subject property’s state: CLTA 116.5, ALTA 7, FL 7, TX T-31.  In California, this should be the 433A.If the Home is in a Flood Zone. 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. A LOMA/LOMR or elevation certification showing finished grade elevation below the manufactured home is at or above the established 100 year flood plain will need to be provided. *NOTE- Flood insurance is still required regardless if property is above the 100 year Flood plain.Condominium Conversion Project. All manufactured homes located in “condominium” resident owned complexes must be approved by HUD’s Review and Approval (HRAP) process. Appraisal form 1073 should be used for these properties. For more information for this approval process, please see Handbook 4150.1 Chapter 11.