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Several of our readers ask us if the FHA (Federal House Administration) has a mortgage loan option for manufactured homes. In fact, there are several government programs available for what is traditionally considered an unconventional home.  The best option for mobile or manufactures homes is the FHA Title 1 program.

The Requirements for an FHA Insured Manufactured Home

The FHA program for mobile or manufactured homes is available to help future homeowners acquire the property, home or both. This program is called the Title 1 manufactured home loan program and a home must meet several requirements to fall under title 1.

  • Newly manufactured homes must have a one year warranty, minimum.
  • The home and property must meet the FHA standards of living
  • The property and home must have water, sewage and other suitable living accommodations
  • The manufactured home must meet the FHA’s Model Manufactured Home Installation Standards.

What Homeowners Need in Order to Qualify for an FHA Title 1 Loan

Future manufactured homeowners must qualify in several ways beyond the traditional FHA loan requirements. Those qualifications must include:

  • Enough available funds to pay a down payment
  • Have the intention of living within the home for at least one year as the principle resident
  • Meet all income and employment verifications

If a potential manufactured home’s homeowner is only purchasing a house (not a property) they must also have a property to place the home on to qualify with the FHA.

Loan Amounts with a Title 1 Loan

There are a few loan caps when homeowners are wishing to use a Title 1 FHA manufactured home loan. If homeowners are only wishing to purchase a manufactured home, the loan cap through the FHA is set at$69,678. However, when a person wants to utilize the FHA Title 1 program for the purchase of a property as well as a manufactured home, the cap is set at a higher amount with a limit at $92,904. These caps of course can change based on the cost of living in an area, in which case the FHA allows a loan limit increase up to 85%.

A Mobile/Manufactured Home Purchase

While there are several government programs available for what is traditionally considered an unconventional home, none work as well for a manufactured home as the FHA Title 1 Program.

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