Posted by Tony Colella on July 28, 2009 at 10:08:53:
I spoke with a mortgage broker who works with Bruce Berger on his deals and is very experienced with the FHA and USDA loans.
I asked about the defn of “permanent foundation” and from what he explained it is not FHA that defines what you can and cannot use. It is the banks that are using the FHA financing arm that define these things which I believe is why we see such variances in how they are applied.
If each lender can create their own definitions of things like “foundations” etc. while all using FHA we are being mislead to some degree when we hear the phrase “FHA requires…”
Again this is an area outside my expertise and am glad others can join in and help out. I can only comment on what I have “heard” and that’s rarely a good source for others to rely upon.
I am attempting to buy a used double wide, totally renovate it and put it on a foundation and peace of land. My question is will it qualify for fha financing and will i have a problem putting it on piece of land? When you build a new home you get plans and they are approved by building codes, do I just get an engineered drawing of the home?
Posted by Kevin (GA) on August 04, 2009 at 20:01:44:
last year I purchased a doublewide for myself and financed FHA through BoA. As I understand FHA required that it be on permanant foundation. Using the term permanant loosely in that this is acceptable if it is permanantly attached skirting such as stucco over wire mesh/plywood and concrete is spread over concrete supporting blocks.
In my situation MH was already on property but not titled together. Subsequent to combining both on title loan approved. This being the case provided you could do same I don’t see why not. It is my understanding that FHA will not finance older than 10 years MH’s
Posted by Tony Colella on July 27, 2009 at 07:53:59:
Each locale will determine how you go about setting up the home. It also depends upon what infrastructure is already in place or for instance, if you would need to add well or septic.
You will need to make a trip to the departments that control the building where the land is. You might start with the planning commission since they have always seemed to be more helpful in my town but your mileage may vary. They should be able to tell you about the land, if you can put mobile homes there and then direct you to the zoning, building and inspection departments for your permits etc.
As for the FHA financing. I hope others with current experience will chime in. I want to clearly state that this is only something I want you to confirm for yourself and not just take my word. I have not tried this yet so I don’t know but I believe FHA will not finance if the home has been moved from its original setting (i.e. you move a repo to a new lot). Again, please do not take my word on this. Ask and confirm and hopefully I am wrong here.
Posted by Shawn Sisco on July 27, 2009 at 09:43:45:
I have put this type of package together many times, and the answer to your question is this - you’ll never know.
In 1998-2001 in my area a poured -load bearing foundation was required on a manufactured home in order in qualify for FHA financing, and the MH being placed, must have never been set up elsewhere. Additionally, the lot must be accessable from a publicly maintained road (no private drive, no easements)
I thought that was how it is and I proceeded to put these types of houses on lots I had developed.
I later (2002)saw non-load bearing block foundations being used by others and when I asked my local inspector he replied that that was perfectly acceptable.
In 2003 I had a customer who had agreed to purchase a 1998 used MH on a lot only accessable by private drive. The home had vinyl skirting, and he obtained FHA financing - of course other familiar inspection issues had to be met ie: gutters, dowspouts, splashblocks porches ect.
Basically the requirements fluctuate depending on the inclination to make loans, sometimes requirements are tightened - sometimes those requirements are loosend.