Can You Get A FHA Loan For A Manufactured Home?

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Knowing and understanding your loan options is good for purchasing a manufactured home. Many people want to know if they can get an FHA loan.

Even though many people call it an FHA loan, the FHA does not technically loan money; what the FHA does is it will insure the loan so that a bank will then loan the money for you to buy the home. Getting the FHA to insure a loan for a manufactured home is possible. An FHA loan is a mortgage loan insured by the Federal Housing Administration (FHA). It’s available to most borrowers who meet specific eligibility requirements and want to purchase a primary residence.

Read on to learn more about FHA loans and manufactured homes.

Table of Contents

About FHA Loans And Manufactured Homes

It is possible to get an FHA-insured loan on a manufactured home. There are specific criteria that you must meet to get the loan.

About FHA And Manufactured Homes

On their website, the FHA will insure a loan for another party. This means you still have to have another party, such as a bank, to give you the funds for purchasing a manufactured home.

The FHA clearly states this about their insuring loans:

Under the Title I program, FHA approved lenders make loans from their own funds to eligible borrowers to finance the purchase or refinance of a manufactured home and/or lot. FHA insures the lender against loss if the borrower defaults. Credit is granted based upon the applicant’s credit history and ability to repay the loan in regular monthly installments.
FHA does not lend money; FHA insures loans in order to encourage mortgagees to lend. Title I manufactured home loans are not Federal Government loans or grants. The interest rate, which is negotiated between the borrower and the lender, is required to be fixed for the entire term of the loan, which is generally 20 years.


The FHA clearly states that their HUD program is not a financial institution but instead is a guarantor that they will pay back the money if someone defaults on the loan payments. The FHA is not a loan company but an insurer whose main job is encouraging another company to loan the money, such as a bank.

Qualification For The FHA Insurance On A Manufactured Home Loan

As with anything to do with the government and FHA, there are specific requirements that you must show before they will underwrite your loan.

Eligible FHA Borrowers Must Have The Following:

There are certain things that each HUD borrower must show before the HUD will help with your manufactured home finance. Here are some of the critical areas:

Borrower Must Have Sufficient Funds

You must have sufficient funds to make the minimum required down payment. You must still have enough cash to pay the required deposits to use the FHA program.

Show Income To Pay Off The Loan

Be able to demonstrate that they have adequate income to make the payments on the loan and meet their other expenses. You need to show them you have the ability and means to repay the loan.

Home Must Be the Primary Residence

You must intend to occupy the manufactured home as your principal residence. The FHA will not underwrite the loan if you want a rental property or a second home, like a vacation home.

Suitable Site To Place The Manufactured Home

You must show a suitable site on which to place the manufactured home. The home may be placed on a rental site in a manufactured home park, provided the park and lease agreement meets FHA guidelines.

The FHA guidelines for a suitable site are stated as follows:

“For Title I insured loans, borrowers are not required to purchase or own the land on which their manufactured home is placed.  Instead borrowers may lease a lot, such as a site lot within a manufactured home community or mobile home park.  When the land/lot is leased, HUD requires the lessor to provide the manufactured homeowner with an initial lease term of 3 years.  In addition, the lease must provide that the homeowner will receive advance written notice of at least 180 days, in the event the lease is to be terminated.  These lease terms are designed to protect homeowners in case the lessors sell the land or close the park.”


The requirements for this mean that if you do not own the land for your manufactured home, you must also have a valid lease for at least three years, and on that lease, it must state if you need to move, you will be given 180-day notice.

If you own the property, then the property may be situated on an individual site you own outright.

An Eligible Manufactured Home Must Meet Certain HUD Standards

The manufactured home must meet certain standards before the HUD decides to help finance the loan. Here are some of their basic requirements.

It must Be A Manufactured Home.

To be a manufactured home, it must be a home that is considered a manufactured home. Homes built before June 15, 1976, are considered mobile homes. Any home you purchase with the FHA must be manufactured after June 15, 1976.

This distinction between a manufactured home and a mobile home is crucial. So any older manufactured home you purchase must ensure that it is considered a manufactured home, not a mobile home.

Meet The Model Manufactured Home Installation Standards.

The HUD-manufactured homes that the FHA will finance have specific building codes and standards. If you are looking for an FHA loan, you must have a home that meets the qualifications and standards for the HUD.

Here are some of the basic requirements.

HUD Square Footage Minimum

Under the HUD guidelines, a manufactured home must be a minimum of 400 ft.² in size. They must have a ceiling height of at least 7 feet in most rooms, and the hallways must be at least 6’6″.

Each bedroom needs to have at least 50 square floor space.

HUD Doors & Window Requirements

The HUD requires two outside doors located at least 12 feet from each other in the single white units and at least two additional and two doors located 20 feet from each other in the double white units.

Each bedroom must also have at least one window to the outside, along with easy access to an outside doorway.

The entire manufactured home must have adequate windows for ventilation, a kitchen, a bathroom, and a mechanical ventilation system.

HUD Safety Regulations

One of their biggest concerns is the safety of the manufactured homes. For a manufactured home to pass the HUD requirements, it must have fire alarms in the living room and each bedroom above each stairway and in the basement.

If there is a basement in the home, they must also be fire retardant materials being used throughout the home system.

As safety is one of the significant concerns for the HUD. They want to ensure that if there is a fire, the home’s occupants will not only be alerted through the fire alarm systems but also will be able to get out into safety.

Manufacturer’s Guarantee

Under HUD standards, if the home is new, the home must carry a one-year manufacturer’s warranty. This requirement is only for brand-new homes that have just been built.

HUD Appropriate Home Site

The HUD also wants to ensure that the home or the location where the manufactured home is based is upon a site that meets the HUD-required standards. The site must be suitable for the home and must be able to show adequate water supply and sewage disposal facilities.

Advantages Of FHA Financing

One of the advantages of getting an FHA loan for a manufactured home is that there are no restrictions on where the property can be located when using this type of financing. This means you can buy your dream manufactured home in any location you choose, even if it isn’t connected to public water or sewer services – something that may not be allowed with other financing options, such as conventional loans.

Another benefit of getting an FHA loan on a manufactured home is that they typically require lower down payments than conventional mortgages.

Additionally, FHA loans tend to lower closing costs than conventional mortgages. This can make it easier for many borrowers who may not have sufficient funds to still buy a new home.

Finally, another advantage of getting an FHA loan on a manufactured home is that interest rates tend to be lower than those associated with other types of traditional mortgages available today, sometimes up to 1-2 percentage points lower than comparable loans from banks or other lenders in some cases.

This can help save borrowers thousands over the life of their mortgage due to reduced monthly payments and overall lowered interest costs over time compared to what they may typically pay otherwise on similar loans through different lenders today.

Overall, getting an FHA loan for purchasing a manufactured home can offer numerous advantages, making it easier for many buyers looking at this type of housing option. Today when compared to other financial products currently available in the marketplace, the FHA-insured loan can be a great deal.

Everything on the FHA-insured loan, from requiring lower down payments and having flexible property locations allowed through their program along with reduced closing costs and potentially lower interest rates than some alternative forms of financing – there’s no doubt why many people are turning towards this government-backed product!

If you are considering buying a manufactured home, an FHA loan may be the perfect solution for your housing needs. An FHA loan is a government-backed loan that’s available to qualified borrowers.

Click here to learn more about the FHA and the Manufactured homes insured financing.

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Many manufactured homes cannot be moved. If you are going to move to a manufactured home, there are many things that you should consider about moving house. Today, many manufactured homes are grounded in place, and it can be challenging to tell a manufactured home from a traditional site-built home. Generally speaking, moving a manufactured home is both a costly and complex process.

By clicking here, you can read more about Can Manufactured Homes Be Moved?

Manufactured Vs. Modular Homes, How Can You Tell?

Manufactured homes are built to HUD standards. Before 1976, Manufactured homes were known as mobile homes. Modular homes are built off-site but must follow all the federal housing standards and local codes or local requirements.

By clicking here, you can read more about Manufactured Vs. Modular Homes, How Can You Tell?

Anita Hummel
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