Manufactured Home Foundation Inspection Requirements
As home prices continue to rise across the country, buyers are looking for affordable housing. In many markets, this can be quite the task. Especially, first time home buyers struggle in this area. One affordable solution that many buyers turn to is manufactured homes with land. Typically, manufactured homes offer prices lower than the market average along with a low cost per square foot of living space. To further help buyers with affordability, we offer FHA manufactured home loans and VA manufactured home loans. Other than the traditional appraisal, VA and FHA loans require a foundation inspection.
What is a Foundation Inspection?
Because a manufactured home may be mobile, FHA and VA have set standards for the structure’s foundation. Therefore, we require that a structural engineer perform a foundation inspection. Basically, it verifies the home’s foundation is structurally sound and is properly attaching the home with the ground.
Also called a foundation certification, the inspection is generally a one-page document summarizing the results. Although, it may be longer in cases of deficiencies.
Foundation Inspection Sample Language
Typical language on a passing foundation certification looks like the following:
An inspection has been performed on the foundation of the manufactured home described above. The foundation is structurally sound, and the home is property attached to a permanent foundation system which is constructed to withstand both supporting loads and wind overturning loads and is acceptable to the building authority having jurisdiction. Therefore, the foundation meets the Veteran’s Association’s (or Federal Housing Authority) current requirements for foundations for existing construction.
The additions to the home are structurally sound and are constructed in accordance with HUD’s construction and safety standards.
The certification will also include the following:
- Structural engineer contact information
- Engineer stamp, license number, & signature
- Borrower contact information
- Property address
- Date of inspection
- Invoice for foundation inspection
What are the Manufactured Home Foundation Inspection Requirements?
Other than making sure that the home is overall structurally sound, the structural engineer is generally checking specific areas of the foundation. These include…
- 8” thick (2’ x 2’) concrete footing
- Wheels, tongue, and axles removed
- Mortar joints in the piers (or surface like “surewall”)
- Brick or block underpinning with an 8” footing with 1 foundation per 150 square feet of crawl space is required
- 6 mil vapor barrier on the ground within the crawl space
If purchasing a new manufactured home, it is key to discuss these requirements with the manufactured home dealer. Make sure that it is done right from the start. If buying a used home with foundation inspection issues, the buyer could request that the seller remedy the problem. If the seller will not make the correction, then it is up to the buyer to pay for the repair or move on to another property.
It is important to note that these guidelines could vary slightly from lender to lender. But, generally these are the requirements.
VA Loans Manufactured Homes
Like other buyers, military service members, Veterans, and surviving spouses, are also looking for affordable housing. Usually, these buyers are looking to use the VA eligibility to purchase a home with no money down. Although not all lenders offer VA loans for manufactured homes, OVM Financial does. Plus, it is up to the full 100% of the purchase price just like a stick built home, town home, multifamily, or VA approved condo.
Benefits of using a VA loan are endless, mainly because of no down payment, flexible guidelines, and affordable payments.
Reasons to Use a VA Loan to Buy a Manufactured Home
- Up to 100% financing
- Seller can pay closing costs
- Up to 4% of the price in seller paid concessions – Learn how to use this to your advantage!
- Up to 55%+ debt to income ratio
- No monthly mortgage insurance
- Waived VA funding fee for disabled Veterans
- Great rates and payments
- Include taxes and insurance in the payment
- Down to 640 credit score
- Cash out refinance up to 100% of value
Learn More About VA Loans for Manufactured Homes
FHA Loans Manufactured Homes
For buyers who are not VA eligible, there is still a low down payment home loan available. Our FHA loans provide financing to refinance or purchase a manufactured home. Just like mentioned above, buyers are looking for affordable housing. With the combination of the manufactured home prices, low FHA down payment, and FHA flexibility, owning a home is very possible.
There are so many reasons to use FHA to purchase a manufactured home with land.
Reasons to Use an FHA Loan to Buy a Manufactured Home
- Low down payment
- Seller can pay closing costs up to 6% of the sales price
- Up to 55%+ debt to income ratio
- Flexible underwriting guidelines
- Co signors allowed
- 640 credit score
- Cash out refinance up to 85% of appraised value
- Great rates and payments
- Includes property taxes and insurance in the mortgage payment
- Down payment may be verified gift funds
The Difference Between Modular & Manufactured
Note: Details in this article only apply to double wide manufactured homes or larger. Currently, we do not provide conventional financing for manufactured homes or any financing for single wide homes.
Buying a Manufactured Home and Land
So, if you are looking for affordable housing and believe that a manufactured home with land is an option, contact us. We are happy to discuss solutions and requirements for you.
