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AFR Conventional Manufactured Home

Definition:

  • A Manufactured home is any dwelling unit built on a permanent chassis and attached to a permanent foundation system.

Basic Unit Requirements:

  • The manufactured home must be built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976, as amended and in force at the time the home is manufactured; and additional requirements that appear in HUD regulations at 24 C.F.R. Part 3280. Compliance with these standards will be evidenced by the presence of both a HUD Data Plate and the HUD Certification Label(s).
  • As an alternative to the original HUD Certification Label(s), the lender may be able to obtain a verification letter with the same information contained on the HUD Certification Label(s) from the Institute for Building Technology and Safety (IBTS). A duplicate HUD Data Plate may be available from IBTS.
  • The unit must not have been previously installed or occupied at any other site or location, except from the manufacturer or the dealer’s lot as a new unit.
  • The manufactured home must be a one-unit dwelling unit that is legally classified as real property.
  • The towing hitch, wheels, and axles must be removed. The dwelling must assume the characteristics of site-built housing.
  • The manufactured home must be at least 12 feet wide and have a minimum of 400 square feet of gross living area.

Anchoring system:

  • The anchoring system must comply with the HUD Codes.
  • If the Manufactured Home was installed prior to October 20, 2008, the anchoring system must comply with the manufacturer’s design or a design by a licensed (registered) professional engineer.
  • Anchoring systems refer to all components of the anchoring and support systems such as piers, footings, ties, anchoring equipment, anchoring assemblies, and any other equipment, materials, and methods of construction that support and secure the Manufactured Home to the ground.

Permanent foundation:

  • The manufactured home must be attached to a permanent foundation system in accordance with the manufacturer’s requirements for anchoring, support, stability, and maintenance. The foundation system must be appropriate for the soil conditions for the site and meet local and state codes.

Lot/Property Requirements:

  • The borrower must own the land on which the manufactured home is situated in fee simple, unless the manufactured home is in a condo project. Both the land and dwelling must be subject to the condo regime. Otherwise, mortgages secured by manufactured homes located on leasehold estates are not eligible.
  • The manufactured home must be permanently connected to a septic tank or sewage system, and to other utilities in accordance with local and state requirements.
  • If the property is not situated on a publicly dedicated and maintained street, then it must be situated on a street that is community owned and maintained, or privately owned and maintained. There must be adequate vehicular access and there must be an adequate and legally enforceable agreement for vehicular access and maintenance.
  • Mortgages secured by existing manufactured homes that have incomplete items, such as a partially completed addition or renovation, or defects or needed repairs that affect safety, soundness, or structural integrity, are not eligible for purchase until the necessary work is completed.
  • Manufactured homes that have an addition or have had a structural modification are eligible under certain conditions. If the state in which the property is located requires inspection by a state agency to approve modifications to the property, then it is required to confirm that the property has met the requirement.
  • However, if the state does not have this requirement, then the structural modification must be inspected and be deemed structurally sound by a third party who is regulated by the state and is qualified to make the determination. In all cases, the satisfactory inspection report must be retained in the mortgage loan file.
  • The Mortgaged Premises must conform to all applicable use restrictions and must be zoned for residential use, and not commercial or business uses.
  • A manufactured home may be located on an individual lot or in a project development.

AFR requirements for manufactured homes located in a PUD or Condo Project:

  • Multi-width manufactured homes located in PUD or Condo project must be previously PERS approved, or a full review performed, and no single-wide units are allowed in the project.
  • Single-wide manufactured homes located in a PUD or Condo project must be previously PERS approved.
  • Single-wide manufactured homes located on an individual lot or in a subdivision and processed through Loan Product Advisor (Freddie Mac) must have a manufactured date that is 10 years or less as of the effective date of the appraisal.

Tools:

Additional Resources

CHOICEHome Flyer

CHOICEHome Overview Presentation

Manufactured Housing Flyer

MH Advantage Flyer

MH Advantage Overview Presentation

Manufactured Housing Presentation