FHA loans (again)

[Pendragon]

Pretty sure FHA doesn't require a 5x5 porch, unless it's specific to your state. Otherwise, I need to go back to my dealer and get my (3) 5x5 porches! The step landings I have are barely big enough to stand on and open the door at the same time. This was all approved by the FHA inspector, so either he doesn't know a 5x5 is needed, or it isn't, or it is only needed in your state.

11% is outragous (I'm at 6.25% and that's too high).
You don't have to escrow your taxes and insurance, but most people do, otherwise you have to pay it upfront and then set aside enough each month to pay them when they come due. It's easier to just escrow them in, and most lenders don't charge a fee to do it.

About $100 a month is good for insurance, taxes depend on your area and if you are paying real estate (like a site built home) or tangile property (like a mobile home). Could be $20 a month, could be $200.

If you can swing the block perimeter foundation, do it. It will be far better in the long run. Skirting blows away, concrete doesn't..

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[Steve]

Would a Permanent Foundations/FoundationWorks system work for this? It is a heavy duty stand system (very strong and less expensive than the wall-type foundations), nd I know it qualifies as a permanant foundation regarding government loans, I am just unfamiliar with the specifics of Title 1 and Title 2, and if there are any other loan types out there. You can look at the system at PermanentFoundations.com, they might have more info there.

Steve

[Bill]

Hey, some great ideas here, everyone,---thanks!! Here's the list of things that we got that are 'mandatory' in WV for a manufactured FHA loan. I'm just now beginning to research it so I don't know if this list is true or just a way to pad the loan but here goes:
Block foundation
5 by 5 porches with steps for each entry way
side walks
a graveled drive way if there is no driveway already there
All utilities connected by a licensed person

The guy is also quoting what I think are outrageous prices for these such as the two tiny, tiny little porches are going to cost $2,500 and having someone hook up the electricity will be $1,500. The power pole is already there so that seems hugely inflated. The water meter is also already there. We already have a driveway so none is needed. Tanya, you said the 92,000 must include set up and improvements? Actually, before we mentioned FHA, the 68,000 included set up. Therefore, the additional $24,000 is for the foundation, porches, sidewalk, and hookups. Which is why I asked if 24,000 was a reasonable cost.
Steve, great info there and I will definitely check into it.
Again, thanks everyone!!

[Robert]

1. Foundation Works are approved for FHA loans. I use them all the time, although I recommend them only for smaller houses. On larger homes, piers or footers are recommended.

2. FHA rules differ in different areas as to decks. Here in Texas, we are required to do 2 4x4 decks, but even that has changed lately from a 6x4 and a 4x4.

3. There is no rule about the utilities, to my knowledge, although in different areas there are different construction codes. For example, if I put a home inside the Houston city limits, a licensed plumber must hook up the A/C disconnect box, but out in the country, the A/C guy can do it himself.

4. It is my understanding that there are no requirements for sidewalks or driveways. I just funded an FHA deal two weeks ago in which the client was going to do his own driveway later, and the FHA inspector signed off on it no problem.


My suggestion to you is to look in the Yellow Pages and find an FHA inspector that does manufactured homes and talk to him about what is and what is not required in your area.

On another point, the FHA max loan amount differs from state to state, and even county to county, but $172, 000 sounds about right for that part of the country. We get about $165,000 around here, but the cost of living is lower than in most parts of the country.

[Robert]

1. Foundation Works are approved for FHA loans. I use them all the time, although I recommend them only for smaller houses. On larger homes, piers or footers are recommended.

2. FHA rules differ in different areas as to decks. Here in Texas, we are required to do 2 4x4 decks, but even that has changed lately from a 6x4 and a 4x4.

3. There is no rule about the utilities, to my knowledge, although in different areas there are different construction codes. For example, if I put a home inside the Houston city limits, a licensed plumber must hook up the A/C disconnect box, but out in the country, the A/C guy can do it himself.

4. It is my understanding that there are no requirements for sidewalks or driveways. I just funded an FHA deal two weeks ago in which the client was going to do his own driveway later, and the FHA inspector signed off on it no problem.


My suggestion to you is to look in the Yellow Pages and find an FHA inspector that does manufactured homes and talk to him about what is and what is not required in your area.

On another point, the FHA max loan amount differs from state to state, and even county to county, but $172, 000 sounds about right for that part of the country. We get about $165,000 around here, but the cost of living is lower than in most parts of the country.

[rmurray]

You mentioned WV specific rewquirements...Actually the FHA has no state specific requirements..You listed..

Block foundation Nationally FHA requires a permanent foundation designed and inspected by a FHA approved engineer block is not the only acceptable foundation (even wood is allowed..but in most areas block is what the engineers require the block will have a perimeter footer and most often the piers will be on poured footers..all footers will be below the frost line and have re enforcing rods in them..Also the piers will be mortared or surewalled...FHA engineers seem to interpret the rules differently...
5 by 5 porches with steps for each entry way..nationally 4x4 is ok..the decks must be permanent in nature and installed in concrete...Our dealership pays about $400 each
side walks ..FHA only requires easy access to the home..this is determined by the appraisers final inspection..we never do sidewalks
a graveled drive way if there is no driveway already there..FHA only REQUIRES that the driveway be the same as others in the immediate area...If the neighbors have greavel..you will need gravel..again this is determined by the FHA appraiser
All utilities connected by a licensed person..Not a FHA requirement..probably a local county rule...


Both FHA appraisers and engineers interpet the rules differently....Which can be confusing even for experienced dealers...more so for customers..

[Jacob]

Even blocks footer are NOT required, a block wall is NOT required. We set up homes per the home owners manual, (which is approved and stamped by HUD), and use vinyl skirting. Our engineers state that this set up meets or exceeds the upward and downward loads required by FHA. If you read carefully in any FHA guideline manual, the words, "suggest" and "strongly suggest" are used, not required!

[Bill]

Wow, sounds like I'm being told that there are a lot more 'requirements' than there actually are. Therefore, the 92,000 most likely is more than I should have to pay if I just go with actual FHA requirements. Thanks so much, everyone!!

[rmurray]

Love to have an FHA inspector in GA accepting vinyl skirt..do you know of one??