Can You Buy a Mobile Home With an FHA Loan?

Manufactured homes offer an appealing and often more affordable path to homeownership. The Federal Housing Administration (FHA) insures loans that facilitate the purchase of these homes. FHA loans are a popular option for homebuyers due to their flexible credit requirements and lower down payment options. This government backing helps reduce risk for lenders, broadening access to financing.

FHA Loan Programs for Manufactured Homes

The FHA offers specific loan programs for manufactured homes: FHA Title I and FHA Title II loans. Understanding the differences between these two options is important for prospective buyers.

FHA Title I loans finance the manufactured home itself, a lot, or both. Borrowers may place the home on rented land if the lease meets FHA guidelines. Title I loans have a maximum repayment term of 20 years for a home or a home and lot, and 15 years for a lot only. Loan limits vary, such as up to $69,678 for a home only or $92,904 for a manufactured home and lot.

FHA Title II loans, also known as FHA 203(b) mortgages, are for manufactured homes permanently affixed to real property. This program requires the home to be permanently attached to land owned by the borrower, classifying it as real estate. Title II loans offer longer financing terms, up to 30 years, and are subject to standard FHA loan limits for single-family homes. The maximum loan amount for a single-family home under Title II was $524,225 in most U.S. counties as of 2025, with limits adjusting annually.

Eligibility for the Manufactured Home

For a manufactured home to qualify for FHA financing, it must meet specific criteria, ensuring it is a sound and safe investment. These requirements focus on the home’s construction, condition, and placement.

The manufactured home must be affixed to a permanent foundation. This foundation must be constructed of durable materials like concrete, masonry, or steel, designed to resist movement, frost heave, and wind uplift. The foundation piers should bear upon reinforced poured concrete footings below the frost line, and the system must include adequate tie-downs anchored to the footings. A permanent, self-supporting perimeter wall, often called skirting, must enclose the foundation to protect against vermin and water, and include an access opening.

The home must also meet U.S. Department of Housing and Urban Development (HUD) Manufactured Home Construction and Safety Standards. This is evidenced by a HUD certification label, typically a red metal plate, affixed to each section of the home’s exterior. Homes built before June 15, 1976, are ineligible for FHA financing as they do not meet these standards.

The home must have a minimum floor space of 400 square feet and be designed as a one-family dwelling. For FHA Title II loans, it must be classified and taxed as real estate, not personal property. An FHA-approved appraiser must evaluate the property to ensure it meets FHA minimum property standards, including adequate plumbing, heating, and electrical systems. The appraisal also verifies the home’s value and condition.

Borrower and Lender Requirements

Both the borrower and the lender must meet specific criteria for an FHA loan to be approved. These requirements ensure the borrower’s financial stability and the lender’s authorization to originate FHA-insured mortgages.

For borrowers, FHA loans offer flexible qualification criteria compared to conventional loans. A minimum credit score of 580 is required for a 3.5% down payment. If a borrower’s credit score is between 500 and 579, the down payment requirement increases to 10%. The home’s purchase and installation costs may be added to the loan amount.

Lenders evaluate the borrower’s debt-to-income (DTI) ratio, which should not exceed 43%. Lenders require proof of stable income and employment history for the past two years to ensure repayment. Borrowers must intend to occupy the manufactured home as their primary residence, as FHA loans are not for investment properties.

Lenders originating FHA loans for manufactured homes must be FHA-approved. Not all lenders offer manufactured home loans, so finding one specializing in this financing is important. These lenders underwrite the loan according to FHA guidelines, verifying all borrower and property eligibility criteria.

The Loan Application and Closing

The process of applying for and closing an FHA loan for a manufactured home involves a series of steps. This procedural flow ensures all requirements are met before the loan is disbursed.

The initial step is obtaining pre-approval for the loan. Pre-approval determines the maximum amount a borrower may qualify for and demonstrates financial capability to sellers. This process requires submitting financial information to the lender, including income verification and credit history.

Once pre-approved, the borrower finds an FHA-approved lender specializing in manufactured home loans. After selecting a lender, the formal loan application is submitted, requiring comprehensive documentation of income, employment, and credit.

The application process includes an appraisal and necessary inspections. An FHA-approved appraiser assesses the manufactured home to confirm its value and verify it meets FHA minimum property standards. This includes compliance with permanent foundation requirements, often requiring a foundation certification from a licensed engineer or architect.

Following the appraisal and inspections, the loan enters the underwriting phase. The lender reviews all submitted documentation, including the appraisal report and borrower financial information, to ensure compliance with FHA guidelines. Once underwriting is complete and the loan approved, the final step is closing. This involves signing all loan documents, paying closing costs, and disbursing funds, officially transferring ownership and securing financing.