A Reverse Mortgage for Manufactured Homes
A Reverse Mortgage for Manufactured Homes has strict eligibility requirements dictated by FHA and HUD. Qualifications for FHA financing for manufactured homes are very specific and not all manufactured homes qualify for the HECM (Home Equity Conversion Mortgage) program.
Manufactured homes, sometimes called mobile homes, are eligible for FHA insured loans under the FHA-HUD guidelines listed below.
Unfortunately, the majority of reverse mortgage lenders have independently chosen to discontinue offering these loans on manufactured/mobile homes in the wake of the Trillions of Dollars of lost equity in real estate values that occurred as a result of the financial collapse beginning in 2008.
If your primary residence is a manufactured or mobile home, please DO NOT request a reverse mortgage quote at this time. We will update this page as lender guidelines change.
Age of Manufactured Home
The home must have been manufactured after June 15, 1976 in accordance with the Federal Manufactured Home Construction and Safety Standards. Proof of this must be evidenced by an affixed red certification label, also known as a HUD tag, which is a metal plate that is attached to the outside of the manufactured home. The label is the manufacturer’s certification that the home section was built in accordance with HUD’s construction and safety standards. HUD standards cover body and frame requirements, thermal protection, plumbing, electrical, fire safety and other aspects of the home.
The Property Must Include Manufactured Home and Land
The manufactured home together with the land must be classified and taxed as real estate. In other words the land cannot be leased or rented. In most cases the land cannot be part of a condominium or co-op. The manufactured home and the land together must be considered one parcel that can be encumbered by the HECM reverse mortgage.
The manufactured home must be on a permanent chassis and affixed to a HUD approved permanent foundation. Usually a structural engineer must inspect the foundation and certify that the foundation meets FHA specifications, prior to FHA insuring a reverse mortgage for a manufactured home. If the foundation does not meet the requirements, the homeowners must make the necessary corrections before a reverse mortgage loan can be obtained.
The finished grade beneath the home must be at or above the 100-year flood plane elevation requirement. A flood certification will determine whether the home is located within the 100-year flood zone. If it is in a flood zone then a survey will be required to determine whether the finished grade meets the elevation requirement. If it does not, then the grade must be corrected before the closing of a HECM reverse mortgage.