FHA Loan for Single Wides

[Jennifer/Carteret Mortgage]

Hello Ask the Experts:

I am a lending broker in WA state. I have a client that currently is paying on a chattel loan for his single wide. I know that FHA will finance this type of home but I am unsure of how to get financing for the foundation portion of the home. The home is already on his 5 acres. Thanks for your insight!!

[Claudia Tietze]

I am not sure that I understand your question about the foundation portion. I am a mortgage broker here in Oregon and primarily deal with stick, brick and mortar, but know something about the mfh market.

As far as I know with FHA, you want double wides. Best thing to do is to run it through DU and see what comes up.

Most manufactured home lenders will lend on the whole package if the land is attached to the house. Usually they want it on permanent foundation, but some will lend without that. The standard is 80%, but some go up to 95%. Most lenders want HUD homes, so June1, 1976 and newer, although 21st Mortgage will do earlier with land attached and aren't too fussy about the foundation requirements.

If you want to email me more details, I would be happy to pass on what I know.

[rmurray]

Technically FHA will finance a single section and land...but you should check with a few appraisers before you invest in the foundation upgrades...

It might be hard to find the required comps. for a single section home...

If you get a finance commitement...the buyer should be able to get a contruction...bridge loan which could cover the cost of the foundation upgrade...This will not be an easy deal..Good Luck