Can you finance a singlewide with an FHA-backed loan?
SOLD! 07/17/08
There are few things you should know if you are planning to sell or buy a singlewide. Financing is available, but there are many hoops that must be jumped through to have a successful transaction. An FHA-backed loan is a possibility with some of the following restrictions:
1) the singlewide must not have been built prior to 1979;
2) it must have a permanent foundation, such as brick or concrete;
3) it must have the original HUD tag on it;
4) the value of the property must be in the home, not just the land (think-waterfront property!);
5) in addition to the standard home inspection you would normally have done, a structural inspection must be completed by an FHA approved structural engineer-some of the things the engineer will look for are:
a) it must be tied down properly, with wheels and hitch removed;
b) the footings must be set in concrete and shurwalled;
c) it must have a proper vapor barrier in place;
6) once the structural inspection is complete and satisfactory, then an FHA-approved appraiser must do the appraisal;
7) as with other real estate transactions, a wood-destroying insects inspection/report is required;
8 ) if there is a well, a water test may be required;
9) if there is a septic tank, a septic inspection may be required, including a plat showing the distance of the septic tank from the house, the well, etc.
10) if the property is located on a private road, there must be some sort of road maintenance agreement filed with the deed
11) and last, but not least, a survey is always recommended.
Please note that the above list is not meant to be all-inclusive. I’m sure there are some requirements that I’ve missed, but this list covers most of the issues I ran into in a recent transaction. Many of these requirements also apply to doublewides, but the guidelines change frequently, so be sure to talk with your lender to find out the specifics as they might relate to your property or the property you are planning to buy.
For more information check out this site I found that talks about mortgage underwriting guidelines or you can also go to the HUD website for a more detailed list of FHA appraisal guidelines, which I found very helpful.
Tags: doublewide, FHA, FHA guidelines, financing options, real estate, singlewide
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