It must include a minimum of 400 square feet of livable space and be classified as real estate. The home must be labeled to indicate that it meets the federal safety and construction standards regulated by the Department of Housing and Urban Development. The FHA has strict guidelines for manufactured homes to qualify for an FHA loan. What Are the Regulations on Manufactured Homes for FHA Loans? You can take out a 30-year loan on a manufactured home through an FHA loan. A lower down payment means you need less money to get into a home.Īnother benefit to potential borrowers on an FHA loan is that you don't usually need to have as high of a credit score as you would for a conventional mortgage. An FHA loan typically requires a 3.5% down payment compared to a traditional mortgage that requires a 20% down payment. The FHA designed these loans to help moderate-income people become homeowners by offering a financing option with a lower down payment. This government backing means that the FHA insures the loan against nonpayment, making these loans more appealing to private lenders. While the Federal Housing Association doesn't issue loans for manufactured homes, it provides government backing to loans, insuring those loans through approved private lenders. If you haven't looked at a manufactured home recently, it's time to check one out as a viable option for your new home purchase. Today's prefabricated homes are designed with modern fixtures and appliances as well as a stylish exterior, making them almost indistinguishable from conventional site-built homes. Modular homes are prefabricated homes affixed to a permanent foundation, allowing homeowners to finance these homes through a conventional mortgage. Prefabricated homes after this date are usually called manufactured homes to differentiate from mobile homes. The Department of Housing and Urban Development placed stricter guidelines on the construction and safety of prefabricated homes on this date. A mobile home is typically viewed as a prefabricated home manufactured prior to June 15, 1976. All three of these options are built off-site with subtle differences. Prefabricated homes include mobile homes, manufactured homes, and modular homes. What Is a Manufactured Home?Ī manufactured home is a prefabricated house, built off-site in a factory-type setting and then transported to its final destination. You can finance a manufactured home via various financing options, one of which is an FHA loan. Manufactured homes are affordable options as a starter or retirement home but can also be enjoyed by any homeowner in the Phoenix area. If you're looking to move to Phoenix or have decided it's time to become a homeowner in Arizona, you may want to consider purchasing a manufactured home.
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