Are There FHA Loans for Manufactured Homes in a Park?

Mary Gormandy White
Manufactured Home Loan

Are you wondering if it's possible to get an FHA loan on a manufactured home in a park? If you're thinking about purchasing a manufactured home, it's certainly important to learn about the different types of financing options that may be available to you. While many factors impact whether or not this type of loan will be approved, FHA loans are available to finance the purchase of a manufactured home that will be placed in a park.

FHA Manufactured Home Loan Program Background

About FHA Loans

When investigating FHA mortgage loans, it's important to be aware that the federal government does not actually lend money. These types of loans are made by private lending companies that have been approved by the Federal Housing Administration (FHA). What makes these types of loans different from traditional mortgage loans is the fact that they are insured by the FHA.

Title I Manufactured Home Loans Criteria

There are several different FHA mortgage loan programs. Loans for manufactured homes fall under the Title I program. Funds can be used to purchase a manufactured home that will be placed on a suitable site that the borrower owns or is leasing and that will be used as the borrower's principal residence.

In situations when the manufactured home is going to be located on a rental lot in a park, both the park itself and the agreement to lease the lot must comply with guidelines established by the Federal Housing Administration. If the borrower plans to purchase the lot where the mobile home will be situated, the price of the lot may also be financed.

Loan Amount and Term Limits

Loan limits vary based on whether the borrower is purchasing a manufactured home only, a developed lot only, or both. While limits may vary based on the cost of living in the area where the home will be placed, the standard loan limit for an FHA manufactured home loan is $69,798 and the maximum loan term is 20 years. The maximum loan amount increases to $92,904 if the funds will be used to buy a lot as well as a home and the loan can be made for a term of up to 20 years. The limit for the purchase of a lot only is $23,226 and can be financed over 15 years.

Getting an FHA Loan On a Manufactured Home in a Park

Finding an FHA Approved Lender

In order to qualify for an FHA loan on a manufactured home in a park, you must first find an approved lender in your state that participates in the Title I mortgage loan program. You can search for approved lenders on the HUD FHA Lender List web page. Once you find a lender that is willing to consider making this type of loan, you must go through the formal loan application process.

Qualifying for Financing

The lender will require you to provide details about your financial history, income, and employment situation as well as information about the particular manufactured home that you want to purchase before making a decision to approve or deny the loan. In order to be approved, you will have to meet the appropriate creditworthiness criteria and be able to demonstrate that you have the financial means to repay the loan.

Interest Rate Information

If you are approved for an FHA Title I loan to finance the purchase of your mobile home it will have a fixed rate of interest. The FHA does not determine what the actual rate of interest will be. Instead, the interest rate is set by the lender.

Alternate Financing Arrangements

If you are not able to qualify for an FHA loan for the manufactured home you want to purchase, other financing options may be available to you. Some lenders make non-FHA manufactured home loans, and you may also be able to finance the structure as personal property rather than through a mortgage loan program.

Are There FHA Loans for Manufactured Homes in a Park?