B5-2-02: Manufactured Housing Loan Eligibility (06/05/2018)

© Fannie Mae Single Family Selling Guide

General Loan Eligibility Criteria

Fannie Mae purchases mortgage loans secured by manufactured homes that meet the following general criteria:

• first-lien mortgages only,
• fully amortizing fixed-rate mortgages or
• fully amortizing adjustable-rate mortgages with initial fixed-rate periods of 7 years or 10 years,
• principal residences and second home dwellings.

Refer to the  Eligibility Matrix for maximum allowable LTV, CLTV, and HCLTV ratios.

Ineligible Manufactured Housing Criteria

The following are ineligible for mortgage loans secured by manufactured homes:

• temporary buydowns;
• investment properties;
• single-width manufactured homes, unless located in a Fannie Mae-approved co-op, condo, or PUD project development;
• homes located on leasehold estates, unless located in a Fannie Mae approved condo project.

Manufactured Housing Standards

The mortgage loan must be secured by both the manufactured home and the land on which it is situated, and both the manufactured home and the land must be legally classified as real property under applicable state law.

The purchase, conveyance, and financing (or refinancing) of the land and the manufactured home must be evidenced and secured by a single valid and enforceable note and first lien mortgage, deed of trust or security deed that is recorded in the land records, in states where applicable state law clearly provides for such a single lien.

See B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built Housing (06/05/2018), for additional information.