Blogging Tulsa Real Estate: FHA Guidelines for Single-Wide Mobile Homes

FHA Guidelines for Single-Wide Mobile Homes

I heard that it is next to impossible to get a mortgage on a single-wide mobile home, so I sought advice around the office.

One "seasoned" real estate agent told me she doesn't list them because "they aren't real estate."  I understood the undertone better than the words.  This is not the right attitude to take in Oklahoma. 

We have some very immense tracts of land here selling for millions of dollars that only have mobile homes on them.  People live in them until they build their "real" houses.  Or they use them to clean their deer or whatever else it is they happen to shoot on their hunting leases.  I kept looking for my answer.

Todd Sparks, our office representative with Coldwell Banker Mortgage, said they can loan on a single-wide mobile home, but they have to meet certain FHA guidelines as follows [with my commentary in brackets]:

Manufactured Homes / Mobile Homes (Revised:  March 9, 2007)

They can consider providing mortgages secured by manufactured housing units that are legally classified as real property[They must be real property, and not have a VIN number such as vehicles like boats or cars or trucks]

The following checklist may be used to determine if the property qualifies for FHA financing.  Mobile homes that are not on a permanent pier and perimeter foundation, and that do not meet the below guidelines, are not eligible for FHA financing.

The below guidelines do not refer to modular homes. Modular homes are treated as Site built.  The difference between modular and manufactured/mobile homes is that modular does not have an under carriage supporting the unit such as a manufactured/mobile home.  Modular is brought to the site on a flat bed.  Manufactured/mobile is brought in on axle and wheels. [N.B., Our multilist lumps modular and manufactured/mobile homes into one category called "factory built"]

Manufactured Home Checklist

  1. The customer pays real estate taxes.
  2. Wheels, axles and trailer hitches have been removed from unit.
  3. The unit does not have a Motor Vehicle Registration Number [VIN Number].
  4. The unit (single-wide or double-wide) was built after June 15, 1976.
  5. Verification that the HUD RED TAG is attached to property (1 for single-wide and 2 for double-wide units).  If property does not have the identifying HUD TAG(s), the home is not eligible for FHA financing.  ***SEE BELOW FOR FURTHER DETAILS***
  6. Meets all building codes and regional FHA foundation requirements.  (Registerd engineer's certification is required.)  ***SEE BELOW FOR FURTHER DETAILS***
  7. First-time put down; not moved from another site (unit must not have been installed or occupied previously at any other site or location).
  8. The land is owned "fee simple" (or has acceptable leasehold approved by Appraisal Underwriting Department).  [This is huge -- in Oklahoma the mineral rights have often been severed from the surface rights.  See my other blogs:  Real Estate is Like a Cake and Putting a Cake under Your Icing.]
  9. The footings / piers must be located below the frost line (per state code -- registered engineeer must certify).
  10. The unit must have a permanent perimeter foundation of poured concrete, masonry blocks, or pressure treated wood (impervious to rot and infestation).
  11. If there are any additions or structural modifications to the original structure, provide an inspection by the State Administrative Agency which inspects manufactured homes for compliance.  (If no agency is willing or able to inspect the existing home for compliance to manufactured home construction and safety standards, the home is unacceptable, not eligible for FHA financing, and will be rejected.)  ***May also be done by a registered engineer.***  [i.e., a registered Professional Engineer or P.E.]
  12. Must be a minimum of 400 square feet.  If less than 400 square feet, property will not be eligible for FHA financing -- no exceptions.
  13. Is the home in, or to be in a flood zone A or V?  The finished grade elevation beneath the manufactured home, or if a basement is used, the lowest finished exterior grade adjacent to the perimeter enclosure, must be at or above the 100-year return frequency flood elevation.  One must provide a flood elevation certificate / survey to verify before the property can be approved.

[I would add to the above guidelines that if there is a septic system on the property, then the elevation of the septic system cannot be in the 100-year flood plain.  Again an elevation survey may have to be provided to show that the septic system is above the level of the flood plain.] 

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Debbie Solano, CRS, ABR, CDPE, CHMS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK  74135

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Comment balloon 17 commentsDebbie Durkee • September 10 2008 11:36PM

Comments

Here, in Michigan, mobile homes can only be sold by real estate agents if they are "permanently affixed to the land" otherwise, you need another type license.  Most mobile homes here are in "mobile home parks", but there are quite a few on acreage up north.  I have never sold one, as the opportunity has never presented itself.  "Modular Homes" are more common here and are treated the same as site built homes.  Good luck

Posted by Lorena McMullen, Serving SE Michigan (3DX Real Estate) about 11 years ago

I used to work in an office where an agent specialized in mobile homes.  She is laughing all the way to the bank!

Posted by Kathy Fey (Fey & Associates) about 11 years ago

Kathy, I appreciate your commenting on my blog.  Perhaps there is a niche out there that goes along with specializing in country properties.  I really had an "attitude" about it myself.

I recently sold a double-wide HUD house and it is actually going to close at the end of the month.  The pay check will indeed be healthier percentage-wise than they usually are.  I need to think about your comment and figure out how to target that market. It would dovetail nicely.

Posted by Debbie Durkee, ALC, CRS -- Land & Country Estates near Tulsa (Coldwell Banker Select, Realtors -- Tulsa, Oklahoma) about 11 years ago

In Florida, many homes are on rented land in retirement parks and we can do chattel loans, or personal property loans on these.  The maximum loan to value ratio is cut to 80% or less, but it can be done all day long down here.

Posted by Randall Schrader (Competitive Insurance of Dundee) almost 11 years ago

Randall:

I'll bet you're making some money!

Posted by Debbie Durkee, ALC, CRS -- Land & Country Estates near Tulsa (Coldwell Banker Select, Realtors -- Tulsa, Oklahoma) almost 11 years ago

The FHA lenders are vanishing on single wides now.  I guess it's the new cancer to avoid moving forward.  The lenders want a sizeable investment or No Deal.

Posted by Randall Schrader (Competitive Insurance of Dundee) almost 11 years ago

FHA Mobile Home Lending Guidelines

The Department of Housing and Urban Development (HUD) sets forth these guidelines for determining if a mobile or manufactured home qualifies for an FHA mortgage loan in Florida:

  • The mobile or manufactured home must be constructed in accordance with the Federal Manufactured Home Construction and Safety Standards. A red tag is attached to the rear of each section of homes that comply with the standards.
  • The home must be taxed as real estate by the local tax assessor's office.
  • The mobile or manufactured home must have been built after June 15, 1976.
  • The mortgage must have a term of at least 30 years from when amortization begins.
  • The mobile home or manufactured home must be on a permanent foundation.
  • The axles and tongue must be removed from the mobile or manufactured home.
  • The mobile home or manufactured home must have adequate skirting and insulation, and the crawl space must have adequate ventilation.

 

http://www.fhamortgageprograms.com/mortgage/manufactured-homes.shtml

 

Posted by FHA Mobile Home Loans almost 11 years ago

Thanks for your kind comment, Betty.  I guess I'll have to start blogging again. I am about to launch a new website.  It will be called OKLandandRanches.com. 

Posted by Debbie Durkee, ALC, CRS -- Land & Country Estates near Tulsa (Coldwell Banker Select, Realtors -- Tulsa, Oklahoma) about 10 years ago

I'm looking to buy a home and I got approved for FHA and now I have found a moble home witch is set up like a house. It does not have the axles on it. And i was woudering if it would pass FHA before i put all my time in it and it not, Thanks

Posted by Lindsey over 9 years ago

The best thing is to talk to your lender and give him or her all the details about the property.

These questions will be asked:

What year is the mobile home? 

Does it still have a VIN number? 

Has it ever been moved from another location?

Is it a double-wide or a single-wide?

Is it permanently tied down?  This is very specific.

How much acreage goes with the property?

Not every lender handles these properties, so call around and find a lender with whom you feel comfortable before you put an offer on the property.

Your REALTOR® should be able to advise you and help you find a reputable mortgage lender in your area.

You may have to go to a credit union or to a little state bank that does not sell their paper on the secondary market.  Go out into the country and find a little bank; stop in and start asking questions.  They'll help you.

Good luck!  Be persistent!

Posted by Debbie Durkee, ALC, CRS -- Land & Country Estates near Tulsa (Coldwell Banker Select, Realtors -- Tulsa, Oklahoma) over 9 years ago

I'm way late for this one but it just popped up on my radar so here goes anyway.

Please feel free to log onto our Trulia [http://www.trulia.com/blog/onthelevelcontractors/] or Active Rain blog [http://activerain.com/action/agents_secure/my_home] for more comprehensive information about the MH Industry. 

Or you can check our our website and give us a call or drop us an email. We are RE Brokers, Manufactured Home Dealers and licensed, bonded and insured General Contractors and have been actively engaged in the MH Industry statewide for almost 3 decades.

We also do "Lonnie Deals" 

We love to network!

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) over 8 years ago

John and Janis:

Oh, you're not too late at all.  Thank you for posting your comments and your link.

The truth is that people want information about how to finance these properties.

This blog prompts a phone call every few months from someone who really needs help.  Therefore, I am grateful to have another resource people can use to get some kind of financing.

Best regards -- oh, by the way, what is a "Lonnie Deal?"

Posted by Debbie Durkee, ALC, CRS -- Land & Country Estates near Tulsa (Coldwell Banker Select, Realtors -- Tulsa, Oklahoma) over 8 years ago
You really found a way to make this whole process eaesir.
Posted by Steffi about 8 years ago
jY526v dyashrivmada
Posted by dbbkazkxrv about 8 years ago

Hi Debbie, If you're still in the Manufactured Home end of the RE biz we'd love to invite you to join our Active Rain Group:

 

http://activerain.com/groups/manufacturedhomes

Posted by John DL Arendsen, Crest Backyard Homes "ADU" dealer & Contractor (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) almost 6 years ago

FHA told me that don't do singlewides

Posted by brian greene over 2 years ago

Hi Debbie, I have a friend that has given me a single wide trailer, however wants to transfer the mortgage over to me, but was told that the financing company can't finance me because its a single wide. I need to know how to get it financed and moved to another location. That way I can get this home for me and my family any advice?

Posted by Deserei Westin about 2 years ago

Participate