FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property Requirements (05/09/2022)

FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property Requirements (05/09/2022)

c. Property Requirements (05/09/2022) i. Definitions (A) Manufactured Home A Manufactured Home refers to a transportable Structure, comprised of one or more modules, each built on a permanent chassis, with or without a permanent foundation, designed for occupancy as a Principal Residence by a single family. (B) New Manufactured Home A New Manufactured Home refers to a home, which has not been previously occupied, purchased by a Borrower within 18 months after the date of manufacture. (C) Existing Manufactured Home An Existing Manufactured Home refers to a home purchased later than 18 months after the date of manufacture; it must be appraised to determine the maximum loan amount. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1037 Last Revised: 11/26/2025 (D) Manufactured Home Lot Manufactured Home Lot refers to a portion of land owned or to be owned by the Borrower as realty, and is suitable for placement of a Manufactured Home. The manufactured home lot may consist of: • platted or unplatted land, a lot in a recorded or unrecorded subdivision or in an improved area of such subdivision, or a lot in a Planned Unit Development (PUD); or • an interest in a manufactured home Condominium Project (including any interest in the common areas) or a share in a cooperative association that owns and operates a manufactured home park. (E) Manufactured Home A Manufactured Home is constructed in compliance with the Manufactured Home Construction and Safety Standards Act of 1974 (42 U.S.C. §§ 5401–5426) at 24 CFR Part 3280, and is exclusive of the land on which the home is set. The Property may include the garage, patio, carport, or other comparable appurtenance. The Manufactured Home: • may be treated as Personal Property or Chattel when it retains its vehicle title (or certificate of title); or • may be treated as realty by the state or locality in which the Property is located, and for which the vehicle title is surrendered and canceled. When the Manufactured Home is treated as Personal Property, Lenders may take a security interest in the Manufactured Home as Personal Property and concurrently place a real property lien on the land. FHA permits Manufactured Homes to be split from the land and secured separately. (F) Manufactured Home and Lot Combination Manufactured Home and Lot Combination refers to an eligible Manufactured Home and manufactured home lot on which the Manufactured Home is placed. (G) Manufacturer’s Invoice Manufacturer’s Invoice refers to a document issued by a manufacturer and provided with a Manufactured Home to a retail dealer that separately details the wholesale (base) prices at the factory for specific models or series of Manufactured Homes and itemized options (large appliances, built-in items and equipment), plus actual itemized charges for freight from the factory to the Dealer’s lot or the home site (including any rental of wheels and axles) and for any sales taxes to be paid by the Dealer. The invoice may recite such prices and charges on an itemized basis or by stating an aggregate price or charge, as appropriate, for each category. The manufacturer shall certify on the invoice, or on a supplement which is attached to and made a part of the invoice, as follows: II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1038 Last Revised: 11/26/2025 The undersigned certifies under applicable criminal and civil penalties for fraud and misrepresentation that: (1) The wholesale (base) prices for the manufactured home and itemized options, the charges for freight and dealer-paid sales taxes, and all other statements in this invoice are true and accurate; (2) all such prices reflect the actual dealer costs at the factory, as quoted in the applicable current manufacturer’s wholesale (base) price list; (3) except for any payments of volume incentives or special benefits related to this transaction, all such prices and charges exclude any costs of trade association fees or charges, discounts, bonuses, refunds, rebates, prizes, loan discount points or other financing charges, or anything else of more than nominal value which will inure to the benefit of the dealer and/or home purchaser at any date; and (4) the manufacturer has not made and will not make any payments to or for the benefit of the dealer and/or home purchaser that are not disclosed on this invoice or invoice supplement. ii. Standard (A) HUD Certification Label (1) Definition HUD Certification Label, also known as a HUD seal or HUD tag, refers to a two inch by four inch aluminum plate permanently attached to Manufactured Housing. (2) Standard The HUD tag should be located at one end of each section of the house, approximately one foot up from the floor and one foot in from the road side, or as near that location on a permanent part of the exterior of the house as practicable. The Manufactured Home must comply with standards for livability and durability as specified in HUD Code, formally known as the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. §§ 5401– 5426) at 24 CFR Part 3280. All Manufactured Homes built since June 15, 1976 must comply with these standards. The manufacturer must certify that a Manufactured Home is constructed in compliance with HUD Code by affixing a red HUD Certification Label to the home. Etched on the certification label is the certification label number, also referred to as the HUD label number. Label numbers are not required to be sequential on a multi-section house. When the HUD seal is missing or not found, Lenders must obtain label verification from the Institute for Building Technology and Safety (IBTS). A manufactured home appraisal must reflect the serial number from the HUD Seal. A manufactured home appraisal is required for: II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1039 Last Revised: 11/26/2025 • a purchase of an Existing Manufactured Home (older than 18 months from date of manufacture); • a non-streamline refinance of a Manufactured Home Loan; or • each Loan for which the Lender files a claim. (B) Data Plate Manufactured Homes have a Data Plate affixed in a permanent manner, typically adjacent to the electric service panel, the utility room or within a cabinet in the kitchen. The Data Plate provides information, such as the manufacturer name, serial number, model and date of manufacture, as well as wind, roof load and thermal zone maps. If the Data Plate is missing or the Appraiser is unable to locate it, the Lender is not required to obtain the Data Plate information from another source. The Lender, or an agent of the Lender that is not a Dealer, must conduct an inspection of the Manufactured Home after it has been delivered and installed at the home site. iii. Required Documentation (A) Invoice or Appraisal The case binder must contain the invoice showing the date of manufacture, or the home appraisal showing the age of the home. (B) Certification of Compliance with HUD Code For New Manufactured Homes, a certification that the home was constructed in compliance with HUD Code must be reflected by a certification on the Manufacturer’s Invoice or invoice supplement, which is signed by the manufacturer’s authorized representative. (C) Manufacturer’s Warranty On New Manufactured Home purchases, the home manufacturer must furnish the Borrower with a one year written warranty. The warranty must be provided at no cost to the Borrower. An authorized representative of the manufacturer must execute the warranty on form HUD-55014, Warranty for New Manufactured Home. The warranty must be effective as of the actual date that the Borrower takes possession of the home. A copy of the warranty must be contained in the Borrower’s case binder. iv. Options and Accessories Transactions for New and Existing Manufactured Homes may include eligible options and accessories, provided that these options are itemized on the Manufacturer’s Invoice, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1040 Last Revised: 11/26/2025 sales contract, and/or a separate bill of sale. Only the actual cost of such items may be considered when calculating the maximum loan amount. (A) Eligible Options and Accessories The following items may be considered when calculating the maximum loan amount, not to exceed actual costs: • skirting; • garage, carport, patio or other comparable appurtenance to the home; and • purchase and installation of a central air conditioning system or heat pump (if not already installed by the manufacturer). (B) Ineligible Options and Accessories The following items may not be considered when calculating the maximum loan amount: • furniture and other articles of Personal Property (lamps, rugs, draperies, etc.); • small appliances that are not part of the Property (toasters, TVs, etc.); and • purchase of wheels and axles. Furniture refers to movable articles of Personal Property relating to a home or dwelling, such as beds, chairs, sofas, lamps, tables, rugs, etc.; however, furniture does not include: • items built into the home or dwelling such as wall-to-wall carpeting or heating or cooling equipment; or • large appliances such as refrigerators, ovens, ranges, dishwashers, clothes washers or clothes dryers. v. Manufactured Home Site Eligibility (A) Standard The site must comply with standards, ordinances, and regulations, if any, issued by state or local government and must: • be served by adequate utility connections; • provide Adequate Vehicular Access from a public right-of-way; • have an adequate water supply and adequate sewerage disposal system. The site must use public or Community Water Systems and sewerage systems, unless such systems are unavailable to provide an adequate level of service to the manufactured home site; • comply with local or state minimum lot area requirements for water or sewage systems, if the site is served by such systems; and • meet the water quality standards set by the U.S. Environmental Protection Agency (EPA), as presented in the National Primary Drinking Water regulations in 40 CFR Parts 141–142, if there are no local or state water quality standards. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1041 Last Revised: 11/26/2025 (B) Required Documentation The Lender must document that the home site complies with the standards outlined above and provides a suitable site for a Manufactured Home. The Lender must obtain one of the following: • a certification signed by a local government representative or registered civil engineer certifying that the private site meets the above site standards; • a certification signed by a local government representative or a jurisdiction of licensing authority responsible for approval of manufactured housing community development; • a building permit for the site from the local government and a water and sewer permit from the water authority; or • a Certificate of Occupancy (CO) for the site signed by a local government representative. A site inspector who is a registered civil engineer may be an employee of the Lender, but may not be employed by the seller or have a financial interest in the subject transaction. The written certification must be retained in the case binder. vi. Site Lease (A) Standard For a leased site in a community of three or more Manufactured Homes on adjacent lots which are all owned by the same entity, the Lender must verify that the lease includes the following provisions: • the lease term must be for a term of three years or longer; • the lease term must be renewable upon the expiration of the original term by successive terms of one year or more; and • the lease must require the lessor to provide the lessee written notice of termination of the lease not less than 180 Days prior to the expiration of the current lease term in the event the lessee is required to move due to the closing of the manufactured home community. The lease must further provide that the lessor’s failure to give such notice to the lessee in a timely manner will cause the lease term, at its expiration, to automatically renew for an additional one-year term. All leases must: • state the property address, term of the lease, amount of monthly rent and be signed by the land owner and the Borrower; and • disclose any potential increase to lot rent as needed or required by the park owner. A lease may require Borrower-lessees to comply with park rules and regulations and be subject to termination for violations. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1042 Last Revised: 11/26/2025 (B) Required Documentation The lender file must contain a copy of the land lease that reflects provisions listed in the standard above for lease term, renewals, and minimum advance notice to the Borrower for lease termination. vii. Native American Reservations and Other Restricted Lands (A) Standard A Manufactured Home may be placed on an owned or leased site within Native American trust or otherwise restricted lands. (B) Required Documentation The trustee or the tribal authority that controls the use of the site provides written permission for the Borrower to install a Manufactured Home on the site and written permission for the Lender to repossess the home in the event of Default by the Borrower and acceleration of the Loan. viii. Manufactured Home Installation Requirements (A) Standard (1) New Manufactured Home or Relocated Existing Manufactured Home The installation or erection of a Manufactured Home on the home site must meet or exceed the requirements set forth in: • 24 CFR Part 3285, Model Manufactured Home Installation Standards; • 24 CFR Part 3286, Manufactured Home Installation Program; and • any state or local requirements governing the installation and construction of the manufactured home foundation system that exceed the Model Manufactured Home Installation Standards. Installation of a relocated existing home must be performed by a licensed installer. (2) Existing Manufactured Home – Not Relocated An Existing Manufactured Home that has not been relocated from the home site upon which it was originally erected must have been installed in compliance with the manufacturer’s requirements for anchoring, support, stability, and maintenance. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1043 Last Revised: 11/26/2025 (B) Required Documentation For all Manufactured Home Loans, the Lender must obtain an executed form HUD-56002-MH. Each Borrower must sign the section entitled Notice to Borrowers. The Dealer and/or retailer must sign the Notice to Dealers whenever the home is purchased through a Dealer/retailer. Form HUD-56002-MH must be retained in the case binder. ix. Appraisals When an appraisal is required, the Lender must engage a Chattel Appraiser who is not engaged in the business of manufactured home retail sales. (A) Appraisal Requirement for Manufactured Home Lot The Lender must obtain an appraisal for the financing of a manufactured home lot by itself, or in combination with a manufactured home chattel unit. Exception An appraisal is not required for lots that are leased, and not secured by a lien. (B) Appraisal Requirements for Manufactured Home Appraisals are required on the secured Property, for the following transactions or events: • purchase of an Existing Manufactured Home (older than 18 months from date of manufacture); • refinance of an existing Title I Manufactured Home Loan with an advance to purchase a lot; • Conventional to Title I Refinance; • Conventional to Title I Refinance with an advance of funds; or • Short Sales and claims. When the Manufactured Home is classified as Real Property, Lenders must use an FHA Roster Appraiser who can certify to prior experience appraising Manufactured Homes as Real Property. (C) Appraisal Requirements for Manufactured Home and Lot Combination Appraisals are required on the secured Property, for the following transactions or events: • purchase of an Existing Manufactured Home (older than 18 months from date of manufacture); II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1044 Last Revised: 11/26/2025 • refinance of an existing Title I Manufactured Home Loan with an advance to purchase a lot; • Conventional to Title I Refinance; • Conventional to Title I Refinance with an advance of funds; or • Short Sales and claims. When the Manufactured Home and lot are classified as Real Property, Lenders must use an FHA Roster Appraiser who can certify to prior experience appraising Manufactured Homes as Real Property. Appraisals are not required for the following transaction types: • Title I purchase of a New Manufactured Home; • Streamline Title I Refinance transactions; • Simple Title I Refinance; • Title I Refinance with advance of funds to purchase a New Manufactured Home; or • lots that are leased, and not secured by a lien. (D) Lender Requirements (1) Prior to Commencement of the Appraisal The Lender must determine that the Appraiser is competent to provide an appraisal for the interest(s) to be appraised and has access to appropriate third- party data sources in order to render a credible opinion of value for the Property. Lenders may obtain separate appraisals on a Manufactured Home classified as Chattel (or Personal Property), and the borrower-owned land lot on which the home is set, and may use different Appraisers for the different interests if necessary. (2) Information Provided to the Appraiser The Lender must provide the Appraiser with a complete copy of the executed contract for sale of the Manufactured Home and land, or, if the Manufactured Home and land are being purchased separately, the executed contract for each. The Lender must also provide the Appraiser with a copy of the manufactured home invoice when one exists. (3) Valuation Development – Borrower-Owned Land and Manufactured Home – Real Estate When the secured Property consists of a borrower-owned lot and a Manufactured Home that are, in combination, treated as real estate by the local government, the Lender must obtain a single appraisal from an FHA Roster Appraiser, use Fannie II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1045 Last Revised: 11/26/2025 Mae Form 1004C/Freddie Mac Form 70B, Manufactured Home Appraisal Report, and follow the guidance noted in Appraiser and Property Requirements for Title II Forward and Reverse Mortgages. (4) Valuation Development – Borrower-Owned Lot When the secured Property consists of a borrower-owned lot, the Lender must obtain an appraisal from an FHA Roster Appraiser. The appraisal of the land must comply with Required Analysis and Reporting for Unimproved Property Appraisal. (5) Lender Review of Appraisal The Lender must review the appraisal and other documentation provided by the Appraiser for errors. If the Lender discovers any errors on the appraisal, the report must be returned to the Appraiser for correction. For an appraisal that was prepared using the National Appraisal System (NAS), the Lender must verify that the Appraisal reflects the correct Property and features. The Lender must ensure that the Appraiser used the NAS-generated forms, did not omit figures or features that would increase the value, and that the information is legible. x. Property Assessed Clean Energy Properties which will remain encumbered with a Property Assessed Clean Energy (PACE) obligation are not eligible for Title I Manufactured Home loans.

Source: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property Requirements (05/09/2022) · source URL · snapshot 8c03836f77f317e1