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Foundations and FHA Loans

2/25/2014

4 Comments

 
There is a lot of confusion and misinformation when it comes to manufactured home foundations and FHA loans.  Most loan officers don't know how to do manufactured home loans...and they give out bad information.  This is why so many of the loans I do are "rescue loans".....loans that started at another lender.

FHA requires an engineer's certificate in all purchase-money loans to certify that the home has a foundation that meets its guidelines.  This is required because until January 1st of 2009, AZ's building code for manufactured home foundations was not as stringint as HUD/FHA code.  So, buyers simply obtained conventional loans instead of FHA and avoided the extra expense of the "HUD foundation" when a home was installed.

Fast forward to today.  Lots of buyers do not have the credit needed for a conventional loan, but are fine going FHA.  So, FHA is back.  And for buyers and sellers, there is a simple/less expensive path to follow so that a most manufactured homes can be marketed FHA, and sold to an FHA buyer.  This improves the marketability of the home.

For more details, Call the Expert.....Eric North
                                                      602-524-2454
4 Comments
Eric North
3/4/2014 12:21:54 am

Fannie Mae and Freddie Mac do not require the FHA/HUD foundation for Conventional loans. However, most lenders require it for Conventional loans because they do not want to take a home back in foreclosure (potentially) that cannot be sold to an FHA buyer. I do have a lender that does conventional loans with 5% down on manufactured homes that does not require the FHA/HUD foundation.

Eric

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Eric North
3/17/2014 06:30:00 am

Lenders are allowed to add requirements to loans...like higher credit score requirements...more down payment...etc. They often do this to improve the quality of the loans that come in the door. So, it is a good way to weed out tougher loans that are harder to make money on...and to lessen the chances of a loan going bad.

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Eric North
3/11/2014 07:05:05 am

FHA is has more lenient credit standards. You can apply for an FHA loan only 2 years after a bankruptcy and 3 years after a foreclosure.

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Eric North
3/23/2014 11:20:27 am

VA requires the HUD foundation too.

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    Eric North

    AZ's Manufactured Home Loan Expert

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