Can You Buy a Manufactured Home With an FHA Loan?

FHA Loan Eligibility for Manufactured Homes

It is possible to purchase a manufactured home using a Federal Housing Administration (FHA) loan. FHA loans are government-backed mortgages designed to make homeownership more accessible. The FHA insures these loans, which mitigates risk for approved lenders, encouraging them to offer more favorable terms.

Eligibility for an FHA loan for a manufactured home involves specific criteria for both the property and the borrower. The manufactured home itself must have been built on or after June 15, 1976, and must display a permanently affixed HUD Certification Label, also known as a HUD tag. This label confirms the home meets federal safety and construction standards established by the Department of Housing and Urban Development (HUD). The home must also be designed as a single-family dwelling and have a minimum floor area of 400 square feet.

The manufactured home must be permanently affixed to a foundation that complies with FHA and HUD standards. This means the home cannot rest on temporary blocks, piers, or wheels; these must be removed. The foundation must be designed to withstand natural forces and support the structure, with acceptable types including piers, slabs, or crawl spaces. An engineer or architect licensed in the state where the home is located must certify that the permanent foundation meets the guidelines outlined in the Permanent Foundations Guide for Manufactured Housing (HUD-7584).

The land on which the manufactured home sits also has requirements. For an FHA Title II loan, the home must be permanently affixed to land owned by the borrower. The land must be part of the real estate transaction and classified as real property. FHA Title I loans offer more flexibility, potentially allowing financing for a manufactured home on leased land, particularly in manufactured home communities. The property must also have access to FHA-approved water and sewer facilities and all-weather road access.

Borrower eligibility for an FHA manufactured home loan aligns with standard FHA loan requirements. A minimum credit score of 580 is required for the lowest down payment option of 3.5% of the purchase price. Borrowers with credit scores between 500 and 579 may still qualify but necessitate a larger down payment, usually 10%. The debt-to-income (DTI) ratio, which compares monthly debt payments to gross monthly income, is also assessed, needing to be 50% or less.

The home must be used as the borrower’s primary residence. FHA loans also involve mortgage insurance premiums (MIPs). Borrowers are required to pay an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, which can be financed into the mortgage. An annual MIP is also charged, ranging from 0.15% to 0.75% of the loan amount, paid monthly. These premiums protect the lender in case of borrower default.

FHA loan limits vary by county and are updated annually. For Title II loans, which finance both the home and owned land, the limits align with those for traditional site-built homes, with a maximum amount exceeding $524,225 in many counties for 2025. Title I loan limits are separate and lower, up to $148,909 for a single-section home and lot or $237,096 for a multi-section home and lot.

Steps to Obtain an FHA Loan for a Manufactured Home

Securing an FHA loan for a manufactured home begins by identifying an FHA-approved lender experienced in these specific loan types. Not all FHA-approved lenders offer manufactured home financing due to the specialized property requirements. Researching lenders who explicitly advertise this service can streamline the process.

Once a suitable lender is found, the next step involves obtaining pre-approval for the loan. This process requires submitting initial financial documentation, such as income verification and credit history, allowing the lender to determine the maximum loan amount you may qualify for. Pre-approval provides a clear understanding of your borrowing capacity before beginning your home search.

With pre-approval in hand, you can formally submit a loan application once a manufactured home is identified. This submission includes the purchase agreement for the home and any accompanying land. The lender will then proceed with ordering an appraisal and inspection of the property.

The appraisal process for a manufactured home under FHA guidelines verifies the home’s value, condition, and compliance with FHA standards. This appraisal involves verifying that the home is permanently affixed to an FHA-compliant foundation. An engineer or architect will provide a foundation certification, confirming it meets HUD guidelines.

After the appraisal and inspection, the loan application moves into underwriting. During underwriting, the lender reviews all submitted documentation, including your financial information and the property’s compliance reports, to ensure everything aligns with FHA guidelines. This stage confirms the loan’s viability and assesses the risk for the lender and the FHA insurance fund.

Upon successful underwriting, the loan is approved, leading to the final stage: loan closing. At closing, all parties sign the necessary legal documents, including the mortgage note and deed. Borrowers will pay closing costs, which include fees for the appraisal, loan origination, title services, and prepaid items like property taxes and initial mortgage insurance premiums. The transfer of ownership is then finalized.