The rising home prices are making it harder for buyers to locate affordable housing. Manufactured homes are a cheaper option for buyers today. There are many manufactured home loan options available to buyers and homeowners. To obtain financing, however, you must have a foundation inspection performed on your manufactured home. Why? Lending agencies are concerned that the manufactured home will be properly secured on the land. This is usually determined by a foundation inspection performed by a structural engineer.

FHA Manufactured Home Foundation requirements

FHA guidelines can be quite detailed. However, there are some important points that you should know. FHA first requires that a structural engineer or an architect certify the foundation of a manufactured home. Both must be registered or licensed in the state of the manufactured home. A HUD foundation certification is necessary to ensure compliance with FHA requirements. If there have been no changes or damages to the foundation, then a previous certification from an FHA-insured loan can be used in lieu of a brand-new one, as long as the HUD foundation certification met FHA guidelines when it was issued.

Manufactured Home Foundations Skirting Requirements

FHA states that “the skirting around existing homes must be permanently fixed to a backing of treated wood, concrete, or masonry”. The skirting can be made of brick, concrete or vinyl. It is ultimately up to the inspector whether it meets HUD/FHA manufactured home foundation standards.

New construction is slightly different. FHA guidelines state that “the space under the house must have a continuous foundation construction designed to resist any forces applied to it without transmitting those forces to the superstructure.” The enclosure must be properly secured to the house’s perimeter and constructed from materials that comply with HUD minimum standards for property (such as treated wood, concrete, masonry or concrete) and PFGMH foundation standards. The Permanent Foundation Guide for Manufactured Home is PFGMH.

FHA Manufactured Housing Loan Benefits

  • Purchase with as little as 3.5% Down Payment
  • Allowance for Down Payment Gift Funds
  • The seller may pay closing costs of up to 6% the price for the buyer
  • Refinance your loan to lower interest rates and pay off current debt
  • Cash Out Refinance Available up to 80% of appraised Value
  • For primary residences only

VA Loan Manufactured Home Foundation requirements

The VA foundation rules are similar to FHA’s. The following highlights of VA manufactured home foundation requirements are to be noted:

  • Site and on-site improvement (excluding the manufactured unit) and property must meet minimum requirements.
  • The manufactured home must be attached to a permanent foundation and meet the requirements as verified by an appraiser from the VA.
  • The VA appraiser may request a structural engineer to inspect the foundation if he/she is unable to verify that it meets guidelines.

Fannie Mae Foundation Requirements

Fannie Mae’s foundation requirements are similar to those of FHA. Fannie Mae loan questions often include “Is vinyl skirting okay?” Vinyl skirting can be used as long as it covers the entire perimeter and is free of holes, since the skirting does not form part of the foundation. The foundation still needs to be inspected, however, by a structural engineer. The foundation must comply with the local building codes. The foundation must comply with HUD/FHA code if there are no local requirements.

Fannie Mae can be used to finance a primary home with as little as 3 percent down. Fannie Mae will also finance up to 90 percent of the price of a secondary home.

Use of a Previous Foundation Certification

Keep the foundation certification if you purchase a manufactured house and receive it. Keep all documentation pertaining to the foundation and home. Keep records. They will make it much easier to sell your home. We have seen many buyers and Realtors abandon a manufactured home purchase because they were frustrated by the difficulty of finding foundation and home details. A good tip for manufacturers is to make the process easy for buyers, realtors and lenders.

Manufactured Home Seller Tips

  • All home, foundation and land paperwork should be provided in a copy
  • All warranty documents must be shown
  • Have your foundation inspected & make all the necessary repairs