FHA MANUFACTURED HOME REALTOR FIELD GUIDE

What Realtors Should Look For Before Showing a Manufactured Home to an FHA Buyer

PURPOSE OF THIS GUIDE
This is not an FHA loan guideline sheet. This guide is designed to help Realtors quickly determine whether a manufactured home is likely to qualify for FHA financing before your client falls in love with the property.

Many manufactured homes are advertised as FHA eligible but have property issues that can delay or eliminate financing. Use this guide when searching MLS listings or previewing properties. 

THE FIRST QUESTION

Is It Actually a Manufactured Home?
✅ Look for HUD labels
✅ Verify the home was built on or after June 15, 1976
✅ Confirm the property is classified as real estate
✅ Confirm the borrower is purchasing both the home and the land

🚩 Red Flag:
Homes built before June 15, 1976 are generally not FHA eligible. 

PROPERTY ELIGIBILITY CHECKLIST
Before showing the property, verify:
✅ One-family residence
✅ At least 400 square feet
✅ Permanently attached to the land
✅ Connected to utilities
✅ Home and land sold together
✅ Classified as real property
✅ Original HUD labels can be located (or replaced through IBTS)

🚩 Red Flags
❌ Leasehold properties
❌ Tribal land
❌ Community Land Trusts
❌ Illinois Land Trusts
❌ Group homes
❌ Shared equity arrangements
❌ Mixed-use properties
❌ Seller carrybacks

FOUNDATION CHECK
This Is One of the Biggest FHA Issues
✅ Home must be permanently affixed to a foundation
✅ Engineer certification is generally required to confirm compliance
✅ Foundation must meet HUD manufactured housing requirements
✅ Existing foundation certifications may be acceptable if no alterations have occurred

🚩 Red Flags
❌ Visible settling
❌ Structural movement
❌ Foundation damage
❌ Additions that were never engineered
❌ Home sitting on blocks without proper foundation support

LOOK UNDER THE HOUSE
Running Gear Must Be Removed
✅ Wheels removed
✅ Axles removed
✅ Tow hitch removed
🚩 Red Flag
If the original towing components remain attached, FHA financing may not be possible until corrected. 

SKIRTING & PERIMETER ENCLOSURE
Realtors Should Look For
✅ Permanent skirting
✅ Continuous perimeter enclosure
✅ Proper ventilation
✅ No exposed crawl space
✅ No vermin, debris, or damage
🚩 Red Flags
❌ Missing skirting
❌ Damaged skirting
❌ Large openings
❌ Exposed crawl spaces
❌ Temporary materials

ADDITIONS & MODIFICATIONS
Ask These Questions
Has a room been added?
Has a porch been enclosed?
Has a garage conversion occurred?
Has living area been expanded?

If yes:
✅ Additional engineering review may be required
✅ Structural certification may be required
🚩 Red Flag

Unpermitted additions are one of the most common manufactured home financing problems.

HUD LABELS & DATA PLATES
Verify These Exist
✅ HUD Certification Labels
✅ HUD Data Plate

*Typical Locations: Kitchen cabinet, Pantry, Electrical panel area,Utility room
 

If missing:
✅ Documentation may be obtained through IBTS
Missing labels can delay closing if not identified early.

FLOOD ZONES
Pay Special Attention
Manufactured homes in certain flood zones can create major issues.
🚩 Red Flags
❌ FEMA Flood Zone A
❌ FEMA Flood Zone V

If the property is located in a flood zone:
✅ Notify the lender immediately before submitting an offer
✅ Additional documentation may be required

APPRAISAL CHALLENGES
Manufactured Homes Need Manufactured Home Comparables
✅ Appraiser must use manufactured home sales
✅ At least two manufactured-home comparables are generally required
🚩 Red Flags
Properties in markets with very few manufactured-home sales may face appraisal challenges.

COMMON DEAL KILLERS
Avoid These Surprises
❌ Home moved from another homesite
❌ Not permanently attached
❌ Missing HUD labels
❌ Missing engineer certification
❌ Visible structural problems
❌ Unpermitted additions
❌ Home not converted to real property
❌ Borrower purchasing home without land
❌ Tribal land
❌ Leasehold property

If you can confirm the following, you're usually off to a strong start:
✅ Built after June 15, 1976
✅ Permanently affixed foundation
✅ Wheels, axles, and hitch removed
✅ HUD labels present
✅ Property sold with land
✅ Converted to real property
✅ No questionable additions
✅ Proper skirting and enclosure
✅ Not located on tribal land or leasehold property