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
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
- 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
- Additional documentation may be required at UW