Considered by some as the first mobile home, the Conestoga wagon had a curved floor to prevent tipping and shifting during difficult treks. Chenoa Fund, offered by CBC Mortgage Agency--a federally-chartered housing finance agency, provides options for borrowers who need help with their down payment. Many Housing Finance Agencies (HFA's) won't lend on manufactured homes, sometimes called mobile homes, even though FHA allows Manufactured that is placed on a permanent foundation. The difference between manufactured and modular homes is that manufactured were originally built on a chassis that allowed them to be towed; they are considered chatel (non-real estate property). Modular homes must be loaded on a trailer and delivered on site. In order to be financed through FHA, the site and installation on a permanent foundation must follow FHA guidelines.
Here is a handy guide to FHA's permanent foundation requirements: FHA Permanent Foundation Guide.
Despite the stigma associated with Manufactured housing, modern modular housing--built in a factory, has some unknown advantages over site-built homes. These are actually pretty interesting because they contradict commonly-held beliefs about this type of housing.
1. When FEMA studied the damage of Hurricane Andrew in Florida, they found that modular and masonry homes fared best compared to other construction (1).
2. A National Fire Protection Association (NFPA) study from July 2011 shows that the occurrence of fires is lower in manufactured housing and the injury rate is lower as well (2).
Chenoa Fund provides 1st and 2nd FHA mortgages on Manufactured homes that meet guidelines. This allows borrowers to purchase this type of affordable housing with no down payment. The requirements are more stringent, but you can find them here: Chenoa Fund Manufactured Housing Guidelines. If you have questions on Chenoa Fund, or this property type, please call me at 208-991-8239 or email me at shawn.king@chenoafund.org.
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