How can I determine if a manufactured home is eligible for FHA financing?

Manufactured Housing refers to structures that are transportable in one or more sections.  Manufactured Housing may also be referred to as mobile housing, sectionals, multi-sectionals, double-wide, triple-wide or single-wide.

To be eligible for FHA mortgage insurance as a Single Family Title II Mortgage, all Manufactured Housing must comply with the following: 

•   have a floor area of not less than 400 sq. feet;  
•   be constructed on or after June 15, 1976, in compliance with the Federal Manufactured Home Construction and Safety Standards as evidenced by the affixed HUD Certification Label;
•   the Manufactured Home and site exist together as a real estate entity in accordance with state law (but need not be treated as real estate for purposes of state taxation); 
•   be built and remain on a permanent chassis; 
•   be designed to be used as a dwelling with a permanent foundation built in accordance with the Permanent Foundations Guide for Manufactured Housing (PFGMH); 
•   have been directly transported from the manufacturer or the dealership to the site; 
•   the finished grade elevation beneath the Manufactured Home or, if a basement is used, the grade beneath the basement floor is at or above the 100-year return frequency flood elevation; and
•   be designed for occupancy as a Principal Residence by single family or a lease that meets Valuation of Leasehold Interests requirements.  

For additional information see Handbook 4000.1 II.A.1.b.iv.(B)(5) and II.D.5.a-b. available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh   HUD’s Permanent Foundations Guide for Manufactured Housing (PFGMH) is available at  https://www.hud.gov/program_offices/administration/hudclips/guidebooks/4930.3G

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-05002