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What You Need to Know to Get a Mortgage for a Manufactured Home

older coupleFrustrated with the lack of homes available to buy? Tired of competing with multiple offers for your dream home? Getting that sinking feeling that rising home prices are pushing you out of the market?

 

Consider a manufactured home.

 

With its budget-friendly price tag, high-end customization options, shorter build time and cheaper maintenance, a manufactured home is an affordable housing solution that is getting more attractive to homebuyers of all ages – especially in a tight housing market.

 

What is a manufactured home?

Today’s manufactured home is not your grandmother’s mobile home. Manufactured homes (built after June 15, 1976) are built entirely in a factory to meet the federal building code administered by the Department of Housing and Urban Development (HUD). These federal standards regulate home design and construction, strength and durability, transportability, fire resistance, energy efficiency and quality. This includes performance standards for the heating, plumbing, air conditioning, thermal and electrical systems. Manufactured homes are built on a non-removable steel chassis and sections are transported to the building site on their own wheels.

 

Can I get a home loan for a manufactured home?

Yes!* But there’s one thing you’ll need: the HUD tag on your manufactured home. This tag has a number that the manufacturer stamped on it when they made the home—a practice the government required starting in 1976. To earn the tag, manufacturers must follow the strict set of building codes we mentioned above that make each home a safe place to live. Choosing a home with this tag not only protects your safety and your financial investment but it’s also required by lenders before they can finance the home. Let’s learn a little more about this label and why it’s so important.

 

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What is a HUD Label?

This is a red metal label that the home’s manufacturer attaches to each section of a home at the factory. The label proves that the home has been certified by the United States Department of Housing and Urban Development (HUD). Since manufactured home builders can’t predict where homes will be installed, it doesn’t make sense to build them according to state codes. Instead, all manufactured homes are regulated by HUD, which sets a national standard as we explained above.

 

What can my home’s HUD Label tell me?

The fact that the home is marked with this label is proof that it was made after 1976 when the government put HUD manufacturing standards into effect, and the home complies with all of the federal guidelines. The specific number printed on your home’s label can tell you some things, too. Each label shows three letters (which identify the agency that inspected the home) followed by a unique six-digit number known as the certification label number. This number will be noted on your appraisal, and it is required for all types of loans.

 

Where can I find the HUD Label?

HUD LabelLook on the outside of the home, on or near the back. (While single-wide homes have just one HUD label, each half of a double-wide home will have its own label, so remember to look for and record each one.) Labels should be approximately two inches tall and four inches wide. When new, they are red with silver text, however, they can fade with time.

 

If the HUD Label is missing and you know the home was built after 1976, ask your loan officer to order a Label Verification Letter from IBTS, available at a nominal cost to you. If the home was built before 1976, it will not have a label, and you will not be able to get financing for it.

 

If you’re the owner of a manufactured home, you may want to take a photo of the label and keep it with your important documents so you don’t have to search for it every time you need it.

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What is the HUD Data Plate?

Manufactured homes also have another important plate known as the HUD Data Plate. This is the manufacturer's certification that the home is built in accordance with HUD's construction and safety standards.

 

What can my home’s HUD Data Plate tell me?

The plate shows the:

  • Name and address of the manufacturing plant,
  • Manufacturer's serial number and model,
  • Design approved primary inspection agency,
  • A list of certification labels for body and frame requirements, thermal protection, plumbing, electrical, fire safety, and other aspects of the home. These HUD standards are published in the Code of Federal Regulations (24 CFR part 3280, Manufactured Home Construction and Safety Standards). 
  • Date your home was manufactured

 

Where can I find the HUD Data Plate?

Look for an 8-1/2 x 11-inch document mounted inside your home, typically near the

HUD Data Platemain electrical panel, inside the master bedroom closet door, utility or laundry room door, inside a kitchen cabinet or on the backside of a cabinet door. As show in the 

example, the data plate has a map of the United States to let you know the Wind Zone,

Snow Load, and Roof Load for which the home was built

 

Thanks to HUD guidelines and manufacturers

who use the same building materials found in site-built homes, today's manufactured homes are designed to be safe and built to last.  As you can see, the information found on the label and the data plate is all the information you'll need to buy your home, and when the time comes, to sell it as well.

 

 

Conclusion

The need for quality, affordable housing has never been greater. Today’s manufactured homes can deliver outstanding quality and performance prices that are up to 50 percent less per square foot than conventional site-built homes. These savings allow more and more Americans to own their own home, even in the face of an ever-widening housing affordability gap. And the first step in getting a home loan to buy your manufactured home: locating the HUD label!

 

We can help!

When it comes to home loans, you have options. We’ll help you compare them and find the one that makes the most sense for you. Got questions? Send us a message and we’ll get back in touch.

 

CONTACT US

 

*This is not a commitment to lend. Not all borrowers will qualify; contact us for more information on fees and terms.

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