Manufactured Homes and FHA

FHA does not insure manufactured homes that have been moved from one site to another. I've found confusion among some agent and even a lender or two where they have misinterpreted the HUD requirement and think that it is OK as long as a manufactured home dealer is moving the dwelling. This is not the case. It is the same for Fannie Mae.

Question; If a manufactured home has been moved, is it still eligible for FHA insurance?

The guidance in this FAQ is effective for case numbers assigned on or after September 14, 2015.

Manufactured units may be moved only from the manufacturer's or dealer's lot to the site on which the unit will be insured. The manufactured unit must not have been installed or occupied previously at any other site or location.

For additional information see Handbook 4000.1 II.B.5.b. available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh