Part 3 – FHA Manufactured Home Loan Guidelines: Processing FHA Loans for Mobile Homes
FHA Manufactured Home Loan Guidelines: Processing FHA Loans for Mobile Homes
How do you process and close an FHA loan for a mobile home in Florida, Texas, Tennessee, and Alabama?
In our prior posts, we discussed FHA Manufactured Home Minimum Property Requirements as well as FHA Manufactured Home Foundation Requirements. In today’s short video we will break down and explain a recommended approach when processing FHA Loans for mobile homes.
When considering the various costs involved, a step-by-step approach is recommended for processing FHA loans for mobile homes in order to help manage out of pocket expenses as you go from contract to closing.
However, before we get started, don’t forget to take advantage and download our Manufactured Home Blueprint for Success with the link below. This free guide is designed to walk you through the process step-by-step and is a great tool for both homebuyers and Realtors alike.
FHA loan for a mobile home in Florida, Texas, Tennessee, and Alabama
As in previous posts, our discussion today will be focused on existing manufactured homes. If you do have questions regarding a new construction FHA manufactured home loan, please reach out to our dedicated team so we can assist.
Processing FHA Loans for Mobile Homes
Because FHA manufactured home requirements will need both an appraisal and a certificate by an engineer attesting that the foundation meets the Permanent Foundations Guide for Manufactured Housing (i.e., structural engineer report), we recommend the following approach when processing FHA Loans for mobile homes:
- Obtain a Proper FHA Manufactured Home Loan Qualification
As with any mortgage, obtaining a proper qualification is critical to future success. With that being said, because FHA manufactured home loan guidelines require both an appraisal and structural engineer report, along with potential retrofit costs (discussed below) this increases the out-of-pocket expenses. Homebuyers and Realtors are advised to work with experienced lenders that understand all phases of the manufactured home loan process.
- Order the FHA Manufactured Home Appraisal.
Once the sales contract has been received and your loan application has begun, ordering the appraisal is the next clear step. By ordering the FHA manufactured home appraisal before any engineering reports, this allows all parties to be aware of the valuation and if the appraiser makes comments about any other property related concerns that affect FHA manufactured home minimum property requirements. Knowing that we have the value and appraisal approved before ordering engineering inspections and incurring any retrofit costs will provide an additional safeguard in the transaction.
- Order the FHA Manufactured Home Loan Structural Engineer Report
Once the appraisal has been approved, the next step would be to order the structural engineer report for the foundation certification. After that has been received, then further review is required in order to confirm if any other upgrades or modernizations to the foundation are needed through the process of retrofitting.
- Order the FHA Manufactured Home Loan Foundation Retrofit
Retrofitting is the term used for the process of upgrading or modernizing the existing foundation to meet FHA manufactured home loan minimum property requirements.
Remember, even if the existing mobile home foundation meets state and local requirements, it still must meet FHA HUD Handbook 4000.1 guidelines. After the engineer’s report is received, upgrades and improvements may be required in order for the foundation to conform to FHA manufactured home loan guidelines.
As you can imagine, there are costs involved in a retrofit and it is important to discuss these potential expenses upfront with both homebuyers and sellers.
Summary – FHA Manufactured Home Loan Guidelines: Processing FHA Loans for Mobile Homes
Most importantly, don’t get overwhelmed by the details, if you have any questions about manufactured home lending, remember to contact our dedicated team of professionals and take advantage of an expert analysis.
Whether you have a transaction in trouble or are trying to maximize your qualifying ability, just call, text, or email to discuss your scenario so we can show you the “Metroplex” difference!
Call/Text: 863-593-2001
Toll Free: 800-806-9836 x280
SeanS@MPLX.org
Thank you again for forwarding and sharing today’s video with any friends, family, co-workers, or clients who are looking to buy, sell, or refinance!
As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!
P.S. We are excited to provide a direct access replay from our recent “Manufactured Home Lending” online workshop. During the webinar, we reviewed manufactured home property eligibility, differences between programs, compared manufactured vs. modular homes, no-down payment manufactured home loans, and a comprehensive analysis of manufactured home lending programs.
Note: We have seen an increase in lender processing mistakes when it comes to manufactured homes. If you have a question or want to discuss a scenario, remember to take advantage of our Free 2nd Opinion Service.
