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Manufactured Home Lending Checklist

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?  Instead every time I turn around, they pop up with a new condition?"

Whether you are a borrower seeking a manufactured home loan with the land or a lender trying to provide one, REMEMBER the Manufactured Home has to QUALIFY, not just the borrower!

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

  • Built after June 15, 1976. No exceptions are allowed!    Even if a 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 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 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. For assistance in obtaining information for a request of label verification, contact Pam Brilhart at (703) 481-2010 or fax at (703) 437-6432 for help on finding HUD tags. See IBTS form attached. 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.
    • If the title reflects title elimination has been recorded on the manufactured home and the tax section of title verifies it as being taxed as real property, no additional conditions are required.
    • However, if the manufactured home is not taxed as real property the Title Company must provide the recorded title elimination, evidence property is being taxed as real property and applicable endorsement. In some states, title may not be purged prior to paying off the lien attached to it. In this case please provide copy of front and back of title to be purged at closing to verify liens attached
  • 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 Project. All manufactured homes located in condominium 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.
  • New Construction Manufactured Housing. New Construction Manufactured homes are required to meet all of these guidelines, and are subject to additional guidelines. For properties delivered to a site within the past 1 year the following additional documentation will be required:
    • NPCA 99a and 99b Soil Treatment
    • Certificate of Occupancy
    • Manufacturer's Warranty
    • Document purchase price and delivery/setup expense (sales contract)
    • Additional documentation may be required at UW discretion.
 

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