Conventional loans · Fannie Mae B5-2-02, B2-3-02Manufactured homes and conventional loans: what Fannie Mae requires

Fannie Mae finances manufactured homes – dwellings built on a permanent chassis to the HUD code (24 CFR Part 3280) – when the loan is a first lien, fully amortizing fixed-rate or a 7- or 10-year ARM, and the home is a principal residence (single- or multi-width) or a multi-width second home. Investment properties and homes in co-ops are not eligible, and a home on leased land qualifies only if the borrower owns the home and it is in a Fannie Mae-approved condo or PUD project. The loan must be secured by both the home and the land, and both must be legally classified as real property under state law. The home must show a HUD Data Plate or HUD Certification Label – photos go in the appraisal, or a replacement letter from IBTS for an existing home; without either, the loan is ineligible. It must be one unit, at least 12 feet wide with at least 400 square feet of finished area above grade, on a permanent foundation suited to the soil and local code, with the towing hitch, wheels and axles removed, permanently connected to septic or sewer and utilities, with legal vehicle access – and it must never have been installed or occupied at another site. Incomplete work or repairs affecting safety or structure must be finished before the loan is sold; additions and structural changes need an inspection report.