PURCHASING AMANUFACTUREDHOME WITH FHA

FINANCINGB L O W N M O R T G A G E . C O M

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Manufactured hous ing can be a more af fordable opt ionfor those that cannot a f ford the h igh t icket that s tandardhous ing may car ry . One of the most popular methods off inanc ing th is hous ing type i s w i th FHA loans . The sameparameters per ta in to th is type of hous ing as regularhous ing wi th a few addi t ions because of the d i f ference inthe type of hous ing . One vast d i f ference for the FHA wi thmanufactured homes is the cred i t scores that theywi l la l low. Wi th s tandard hous ing , c red i t scores do notmatter as much as cred i t h is tory . Wi th manufacturedhous ing , however , a score of a t least 640 i s needed inorder to get approved .

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WHAT HOMES QUALIFY?As with standard housing, there are certain requirements thatmanufactured housing must meet in order to be approved.The first rule is that it must have been built after June 15, 1976.This is something you should check before going any furtherwith the purchase of a manufactured home. If it was builtbefore then, it will not be eligible for FHA financing and if youare relying on the low down payment of 3.5%, you will needFHA financing.

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ONCE YOU KNOW THE HOME WAS BUILT AFTER THAT DATE, YOUWILL HAVE TO BE CONCERNED WITH THE FOLLOWING AREAS:

Foundation – A certified engineer will be hired to evaluate the statusof the home’s foundation. This inspection can be costly and will beadded to your closing costs. The inspection is done to determine ifthe home is worthy of FHA financing.

HUD Tag – The manufactured home you wish to purchase musthave its HUD Tag. This tag, which you can think of as a license plate,needs to be on the home in order for it to pass for FHA financing.

Data Plate – This information, which is actually a piece of paperlocated somewhere in the house, states where the home was builtto live. For instance, it could have been built to withstand the hottemperatures of the south or the colder temperatures of the north.The FHA wants to know where the home was meant to stand inorder for it to stay in good working condition.

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WHAT HOMES QUALIFY?

If the home you wish to purchase does not have the HUDtag or Data Plate, the owner will have to do some researchto provide the relevant information to the bank in order forit to pass FHA financing.

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THE IMPORTANT NOTES REGARDING FHALOANS AND MANUFACTURED HOMES

Just as with standard housing, there are certainrequirements that must be met in order to obtain FHAfinancing for a manufactured home. You must live in thehome that you are purchasing; it cannot be purchased asan investment or second home. Other notes to considerinclude the fact that you can obtain a gift in order to makethe down payment on the home or pay the closing costsand you must be able to demonstrate that you cancomfortably afford the loan.

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I f you are cons ider ing buy ing a mobi le home, you wi l lhave to search for a lender that of fers FHA f inanc ing forth is type of hous ing . Not every lender wi l l o f fer i t – soyou wi l l have to do your research . Make sure that you areaware of the par t icu lars of the home before get t ing tooinvolved as wel l . I f the owner does not have the HUD Tagor Data P la te , you could have qu i te a headache on yourhands as the r ight in format ion i s sought for the bank .Once you know a l l in format ion i s in tact and you have thecred i t , income, and debt ra t io to qual i fy , you can get theprocess s tar ted .

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INFORMATION PROVIDED BY:

Justin McHood

Mortgage Commentator

Justin McHood is Americas Mortgage Commentator and hasbeen providing Mortgage commentary for over 10 years.

INFORMATION ORIGINALLY PUBLISHED ON 9/17/15BLOWNMORTGAGE.COM

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