Foundation

Foundation:

10.7.6 Manufactured Homes / Mobile Homes (Revised: January 16, 2009)
Note: Manufactured Homes are not permitted for Wholesale and Correspondent Lending

Lenders can consider providing mortgages secured by manufactured housing units that are legally classified as real property.
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.

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.
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. (Registered 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).
9. The footings/piers must be located below the frost line (per state code - registered engineer 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. ***
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 floor elevation. Must provide flood elevation certificate / survey to verify before property can be approved.

Security Instrument
The Security instrument or an attachment recorded with security instrument must include:
• A comprehensive description of home and land,
• Reference the home is affixed to permanent foundation or the specific language required by state law
• Identifying numbers such as the Vehicle Identification Number and the make, model and size of the manufactured home.

*** REGISTERED ENGINEER'S REPORT IS MANDATORY ON ALL MANUFACTURED / MOBILE HOMES (EXISTING, PROPOSED, AND NEWLY CONSTRUCTED). ***
THE ONLY EXCEPTION: This does not apply if the FHA customer is refinancing their current FHA loan.
(Applies to all other refinances, purchases, and re-sales)
The Registered Engineer's Report must certify that the property conforms to all FHA guidelines for Permanent Foundation Guide for Manufactured Housing (ML 97-36). This report must be provided to the appraiser prior to their inspection of the property.

The home must be on poured, in place concrete footings with the footings extending below the frost line (per state code) supporting the manufactured home carriage frames. The carriage frames must be permanently attached / anchored to the footings / piers by cable, rebar welded, or a similar fashion (referred to as tie downs). The existing system can be cement blocks, cemented together and placed on a pier, or concrete runners, or "I" beams set on a bearing wall. The support piers (if on masonry blocks) cannot be dry stacked, but must be mortared together and permanent (temporary supports are not acceptable). Then the entire perimeter foundation must be protected from the elements, and enclosed with
material impervious to rot and infestation, and must be a perimeter foundation-type construction with adequate exterior access for maintenance and repair.
NOTE: Vinyl skirting is not acceptable as it is very easily damaged. If metal skirting is used, it must be of a material that is impervious to rot and rust, and not easily damaged.
Skirting is not acceptable to use as a perimeter foundation in the Philadelphia Region (CT, DE, ME, MD, MA, MI, NH, NJ, NY, OH, PA, RI, VT, VA, and WV). Properties in these states must have a perimeter foundation-type wall construction.
Alternate foundation: Registered engineer to inspect and certify current foundation design is a "Frost Protection Shallow Foundation" and meets "ASCE 32-01 standards." This report will need to be forwarded to the HUD HOC office that has jurisdiction over said state for review and approval. Report cannot be approved by lender.

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