What FHA programs are available to purchase a manufactured or mobile home?

FHA lenders that are approved for Title I may offer Title I home loan financing to a borrower for the purchase or refinancing of a manufactured home, a developed lot on which to place a manufactured home, or a manufactured home and lot in combination. The home must be used as the principal residence of the borrower. These are not low interest rate loans. However, the interest rate is fixed and is based upon the prevailing market rate in the area at the time the loan is made.

For more information about the Title I program for manufactured housing, go to the following HUD website https://www.hud.gov/program_offices/housing/sfh/title/manuf14 

If a higher loan amount is required than allowed under the Title I program, financing may be available under FHA's Title II home mortgage financing program. The manufactured home must meet certain additional requirements, including the following:
* 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 (manufactured homes produced prior to that date are ineligible)
* be classified as real estate
* be built and remain on a permanent chassis
* be designed to be used as a dwelling with a permanent foundation built to FHA criteria
* the finished grade elevation beneath the manufactured home or, if a basement is used, the grade below the basement, shall be at or above the 100-year flood elevation.
In addition, the mortgage must cover both the manufactured unit and its site and shall have a term of not more than 30 years.

Borrowers who are interested in purchasing manufactured housing should discuss with their lender the various options under the Title I and Title II programs.
You can find an FHA approved lender in your area by going to the following HUD website: https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist

General Program Information is available on HUD's web page at: https://www.hud.gov/program_offices/housing/rmra/mhs/faq


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03809