As many of you know, it is getting harder and harder to get financing on a mobile home. It is now at the point that the most likely way is with an FHA Insured Loan. Here are a few things to know and to look for before listing;
- If the home has been moved from it's original put-down site, it can not be financed with FHA.
- The home must be on a permanent foundation with the tie-downs secured to the footers. Not soil anchors.
- It is recommended that there be mortared concrete block perimeter walls.
- There must be Crawl Space doors in place.
- The Piers supporting the home are best mortared or wrapped.
- The footers must set below the Frost Line.
- There must be a HUD label on each section of the home. This states that the home was constructed under HUD guidelines.
- There must be at least a 4' x 4' pad or landing outside each entrance. This includes decking.
- Decks that are attached need vertical rail spindles that are spaced no more than 4" apart from each other on all sides.
- Stairs need handrail. Interior and exterior.
- The underwriting of the FHA loan will require an Appraisal that is at least the contract sale price of the home.
- Underwriting will require that the foundation home be inspected by a Structural Engineer. The report must stipulate that the home meets the FHA guidelines for a permanent foundation.
- Generally, the rest of the home should be above average in condition and that there is an operational heating system in place.
- In most cases, an FHA loan requires that the buyer put at least 3% down (97/3). This can include the monies used for Inspections, Appraisals & Engineers.
There can be more required. This should give you an idea of what to look for before you decide to list these types of homes. It can be a long and difficult road to get the financing in place and keep the Sellers and Buyers happy. Good luck!
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