A Reverse Mortgage For Manufactured Homes

HECM (Home Equity Conversion Mortgage) reverse mortgage loans insured by FHA and backed by HUD have certain property eligibility requirements.  Qualifications for a Reverse Mortgage for Manufactured Homes are very specific and not all manufactured homes will qualify for a HECM reverse mortgage. 

Manufactured homes, sometimes called mobile homes are eligible for an FHA insured HECM reverse mortgage loan under the following conditions:

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.

Permanent Foundation

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.

Elevation

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.

If you own a manufactured home and are unsure whether your home meets the requirements mentioned above, please feel free to request more information about a reverse mortgage for manufactured homes.