Home Buying in Bloomfield>Question Details

Jennifer, Home Buyer in Bloomfield, IN

FHA and modular homes

Asked by Jennifer, Bloomfield, IN Thu Jun 25, 2009

Will an FHA mortgage cover the costs of purchasing a new modular home as well as installing septic, electricity, water, etc? Land is not a concern as we are able to obtain that from a relative at no cost.

Help the community by answering this question:


This comes directly from the HUD website:

How about manufactured housing and mobile homes?
Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products - one for those who own the land that the home is on and another for mobile homes that are - or will be - located in mobile home parks.
Purpose of the Loan

A Title I loan may be used for the purchase or refinancing of a manufactured home, a developed lot on which to place a manufactured home, or a manufactured home and lot in combination. The home must be used as the principal residence of the borrower.

Maximum Loan Amount
• Manufactured home only - $69,678
• Manufactured home lot - $23,226
• Manufactured home & lot - $92,904

The maximum dollar limits for lot loans and combination loans may be increased up to 85 percent in designated high-cost areas. For further information on high-cost area limits, contact (800) CALL-FHA.

Maximum Loan Term
• 20 years for a loan on a manufactured home or on a single-section manufactured home and lot.
• 15 years for a manufactured home lot loan.
• 25 years for a loan on a multi-section manufactured home and lot.

I hope this helps. If you have more questions just call the number above.
Best wishes on your new home.
Mary Norris, Realtor, Washington, IN
0 votes Thank Flag Link Fri Apr 20, 2012
Jennifer, be sure you are using the term "modular" correctly. A "modular" home is the same as a stick built and lenders will finance it as such. Its pieces were built in a factory setting, then it's assembled at the home site. A "manufactured' home is one that was once on wheels, trucked in already assembled or maybe split in two, with a steel beam running underneath to join the two pieces. It starts out with a BMV registration. This is often financed differently than a stick built or modular home. Unfortunately, as a realtor, I can't really answer your question! (Some help I am, huh?) But a quick call to a reputable lender should be able to get you an answer. I just wanted to make sure you ask the lender the right question. The modular versus manufactured distinction can be confusing and I've talked to a lot of people, realtors included, who interchange the words, but it makes a big difference for lenders. (I do think there are some 100% financing options for purchasing a new manufactured home from a USDA approved builder, again - ask your lender.) Best of luck!
0 votes Thank Flag Link Wed Jul 8, 2009
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