1. Presented by: Mountain West Financial
Manufactured Homes

2. Definition
Manufactured homes are built offsite and transported to a lot in one or more sections
Build on a permanent chassis and can be relocated and reinstalled
Note: modular homes are different in that they are assembled on a concrete foundation; no chassis
Every manufactured homes needs a HUD tag, data plate, and recorded notice of installation (433a in CA, Affidavit of Affixture in AZ, etc…)

3. History
Originally only about 6 – 8 feet wide and marketed as truly mobile homes
Typical mobile home increased in size to 10 feet wide and began being installed on permanent foundations in the 1950s
Industry expansion led to many companies building homes to varying standards in the 1970s

4. June 15th, 1976
Mobile Home Construction and Safety Standards Act of 1974
HUD begins to promulgate standards in 1976
Mobile homes conforming to HUD standards built after 6/15/1976 are called manufactured homes
The HUD certification label is attached to the exterior of every manufactured home

5. HUD Data Plate 8.5” x 11” sheet of paper providing information on:
Name and address of manufacturing plant
Serial number
Model name
Date of manufacture
List of factory installed equipment
Roof and wind load zones

6. State Specific Documentation
California
433a Notice of Manufactured Home Installation on a Foundation System
Colorado
Affidavit of Real Property for Manufactured Homes
Certificate of Permanent Location for a Manufactured Home
Oregon
Application & Certification Exempting Manufactured Structure from Ownership
Nevada
Affidavit of Conversion
Washington
Manufactured Home Application

7. California 433a
Notice of Manufactured Home, Mobilehome or Commercial Modular – Installation On a Foundation System
In California, the 433a is recorded to convert the manufactured home to real property
Recorded when the manufactured home is inspected and a certificate of occupancy is issued
The 433a must be recorded
Other states have their own version of this form

8. Conventional

9. Eligibility Matrix Max loan amount is $453,100
Transaction Type
Max LTV
Min FICO
Primary
Purchase & Rate/Term
95%
620
Cash-Out
65%
Second Home
90%
Max loan amount is $453,100
Not eligible for HomeReady or Home Possible

10. Conventional Guidelines
Primary and second homes only
Fixed rate only for cash-out
No manual underwrites
No non-occupant co-borrowers
No gifts or DPA
2 months reserves from borrower’s own funds are required
Borrower’s minimum contribution is 5% unless LTV is equal to or below 80% on second homes
Borrower must have owned both the land and home for at least 12 months prior to the application on cash-out transactions
55+ communities not allowed with DU
LPA allows age related deed restrictions for manufactured homes

11. Conventional Property Requirements
No manufactured + SFR on same property
No single-width
10 acres maximum
Must be classified as real property
No chattel
Land must be owned in fee simple unless located in a condo project
Leasehold estates are ineligible
Must be at least 12 feet wide and have a minimum of 600 square feet GLA
Condo projects must be Fannie Mae approved
Modifications to the property will require an engineer cert
Unit must never have been installed or occupied at any prior location except the manufacturer or dealer’s lot

12. Standard Property Requirements
Must be built after June 15th, 1976
Must have HUD data plate or IBTS verification
Must be one unit classified as real property
433A or applicable state specific documentation

13. FHA

14. Eligibility Matrix Manufactured homes are eligible for FHA EEM
Transaction Type
Max LTV
Min FICO
Primary
Purchase
96.5%
660 < 90%
680 > 90%
Rate/Term
97.75%
Cash-Out
85%
Manufactured homes are eligible for FHA EEM
Max loan amount is $453,100

15. Refinances
On a refinance transaction, the manufactured home must have been installed on a site for at least 12 months prior to the case assignment

16. New Construction There are 3 categories of new construction
Proposed
No concrete or permanent material placed
Under Construction
Permanent material placed
No cert of occupancy
Existing for Less than One Year
100% complete for < 1 year from date of Certificate of Occupancy
Never occupied
FHA treats the sale of an occupied property that has been completed for less than 1 year as existing construction

17. New Construction Documentation
Proposed
Under Construction
Existing for Less than One Year
2 inspections (initial and final) performed by FHA roster inspector; or
2 Inspections (initial and final) performed by the certifying engineer or architect; or
a 10-year warranty and final inspection issued by an FHA Roster Inspector or certifying engineer or architect
A 10-year warranty and final inspection issued by the FHA Roster Inspector or certifying engineer or architect
A 10-year warranty and final inspection issued by the FHA Roster Inspector or certifying engineer or architect.

18. FHA Guidelines Maximum DTI is 45% No gift funds 2 months reserves
No manual underwrites
Down payment, closing costs, and reserves must come from borrowers’ own funds

19. Property Requirements
No manufactured + SFR on same property
Must be above 100-year flood plane
May not be processed as site condos
Must be HUD approved projects
Minimum GLA is 400 square feet
Minimum of 2 manufactured comps on appraisal
Must be built on or after June 15th, 1976
Must be classified as real estate
Must have been transported directly to the site from manufacturer or dealership
Must have HUD label or IBTS cert
433A or applicable state specific documentation

20. Engineer Cert
An engineer’s cert is required on all FHA loans for manufactured homes except on HUD REO
An engineer’s cert from a prior FHA loan may be used provided there have been no alterations to the foundation since inspection
Any modifications noted on appraisal must be addressed in certification
Typical verbiage on appraisal: Require verification that the subject’s foundation meets FHA/HUD foundation requirements – engineer’s certification is required

21. VA

22. Eligibility Matrix Max loan amount is $453,100
Transaction Type
Max LTV
Min FICO
Primary
Purchase
100%
660 < 90%
680 > 90%
Rate/Term & Cash-Out
75%
Max loan amount is $453,100
IRRRL allowed for MWF – MWF transactions only

23. VA Guidelines Limited to 10 acres No single-wide No high balance
No leasehold estates
Max DTI is 45%
No manual underwrite
2 months of reserves from borrowers’ own funds
No gift funds

24. New vs Existing Construction
Home has not been installed on a permanent foundation
When the foundation is complete and the home is installed, the home is considered existing construction

25. New Construction Warranty
Proposed or under construction
The contractor responsible for the construction of the foundation must provide the one-year warranty
New manufactured home
The manufacturer must provide a one-year warranty on VA Form Manufactured Home Warranty
Used manufactured home sold by dealer
The dealer must provide a 6 month warranty on Form Used Manufactured Home Limited Warranty

26. New Construction Inspections
New manufactured homes
1st and 3rd inspections
Used manufactured homes
Water-Plumbing Systems Inspection Report, VA Form a
Electrical Systems Inspection Report, VA Form b
Fuel and Heating Systems Inspection Report, VA Form c
Certification that the roof was coated after set-up on the site.

27. Property Requirements
Must be built on or after June 15th, 1976
Must be classified as real estate
433A must be recorded

28. USDA

29. Eligibility Matrix
Transaction Type
Max LTV
Min FICO
Primary
Purchase
100%
620
Rate/Term
640
Purchases may be for new manufactured homes only. Must never have been occupied.
Only existing USDA guaranteed rural housing loans may be refinanced.

30. Guidelines The purchase loan may cover: Ineligible properties:
Purchase of a new unit and site
Site development
Transportation costs
Ineligible properties:
Single wide
Leasehold estates
Located in a condo project
Homes 12 months or older

31. Manufactured Home Tips
Verify that the home has not been installed at another location early in the transaction
Finding out this condition cannot be satisfied late in the loan process results in a lot of wasted time and frustration
In CA, running an informal title search on the property may yield information on whether the home was moved
California Department of Housing and Community Development hcd.ca.gov
If the home is missing the data plate or HUD tag, verification from IBTS can be used
Typically $50 - $225 for verification depending on whether both the label and tag need to be verified and how fast delivery is needed
label-verification.html

32. Questions?

33. Thank you!