13.6 AUTHORIZED LOAN PURPOSES (03/09/16)

Owned by Kacey Olson
Nov 17, 2018
2 min read

© RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook

When a real estate mortgage or deed of trust covers the unit and the site, a loan to finance the following may be guaranteed.

  • Site development work that conforms to the standards imposed by the state and local government.
  • Purchase of an eligible new unit, transportation and set-up costs, and purchase of an eligible site if not already owned by the applicant. Manufactured units must be less than 12 months old and never occupied and will include the site. The date of the purchase agreement must be within one year of the manufactured date displayed on the plat attached to the unit. The following criteria outlines an eligible unit for guarantee with the SFHGLP:
    • To be an eligible unit, the new unit must have a floor area of not less than 400 square feet.
    • The unit must meet the Federal Manufactured Home Construction and Safety Standards (FMHCSS).
    • The unit must be placed on a permanent foundation built to FHA guidelines in effect at the time of certification. Guidelines are presently published in the “Permanent Foundation Guide for Manufactured Housing” (HUD-4930.3G) which is found at http://www.huduser.org/portal/publications/destech/permfound.html.
    • Certification the foundation design meets HUD Handbook 4930.3, “Permanent Foundations Guide for Manufactured Housing (PFGMH).” The foundation certification must be from a licensed professional engineer, or registered architect, who is licensed/registered in the state where the manufactured home is located and must attest to current guidelines of the PFGMH. The certification must be site specific and contain the engineers or registered architect's signature, seal and/or state license/certification number.
    • The manufactured home must be classified and taxed as real estate. Lenders are responsible for ensuring the title has been purged and the manufactured home has been officially converted from chattel to real property, as state law allows.
    • The mortgage must cover both the unit and its site.
  • Purchase of a unit on hand that has not been installed, or occupied at any other site or location. Manufactured units may be moved only from the manufacturers or dealer's lot to the site on which the unit will be guaranteed. This type of unit is eligible as long as the purchase agreement is dated within 12 months of the date the unit was manufactured. The date of manufacture is available on the factory installed plate on the unit. Manufactured home units with a manufacture date exceeding 12 months of the purchase agreement contract will be ineligible for a guaranteed loan.
  • The Agency will not guarantee the purchase of an existing manufactured home that has been moved from another site.
  • Alteration or remodeling of the unit when the initial loan is made (i.e. garages). All alternations and modifications must meet FMHCSS.