Manufacture homes are eligible for financing with FHA, VA, and conventional loans. For many buyers looking for maximum square footage at a lower price, manufacture homes can be an attractive option.
The most important additional step for financing a manufactured home is the requirement for an engineer to verify that the home foundation meets HUD guidelines. The guidance is in HUD publication 4930.3. Generally the manufactured home foundation requirements pertain to piers and underpinnings, and the depth of the piers. The exterior (visible) foundation is most often decorative skirting.
One question that is often raised when a home is for sale is the difference between a manufactured home and a modular home. Modular homes are factory build homes that meet local construction codes. They generally are treated as site build homes for lending purposes.
A manufactured home is also factory built. Generally it is built on a chassis so that it can be transported. The building standards are based on federal guidelines. The clearest indicator whether a home is modular or manufactured is the foundation.
Modular homes have foundations like site build homes. Manufactured homes are underpinned and the exterior skirting is typically not load bearing.
Ultimately the final indication is the HUD decal which must be located on the home. The HUD decal is typically located on either side of a manufactured home and on an inside cabinet. These decals must be found, even if under home exterior siding. If they cannot be located on the home, the closing might be delayed as the HUD number for the home is verified.
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