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13.9 AUTHORIZED LOAN PURPOSES
The following are eligible loan purposes for the financing of manufactured homes:
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x Site development work that conforms to the standards imposed by the state and
local government.
x Purchase of an eligible new unit, transportation, and set-up costs. The following
criteria outlines an eligible new manufactured unit for guarantee with the Single Family Housing Guaranteed Loan Program (SFHGLP):
o Must be a new unit in stock that has never been installed or occupied at
any other site or location. Manufactured units may be moved only from the manufacturers or dealer’s lot to the site on which the unit will be financed.
o Must have a floor area of not less than 400 square feet.
o Must be placed on a permanent foundation built to FHA guidelines in
effect at the time of certification. Guidelines are presently published in the “Permanent Foundation Guide for Manufactured Housing” (HUD- 4930.3G).
o Meet or exceed the Federal Manufactured Home Construction and Safety
Standard (FMHCSS) Uo Value Zone for the geographic area the unit will be placed. The Uo Value Zone will be indicated on the Comfort Heating and Cooling Certificate. Builder must certify thermal requirements at time of purchase have been met.
o Must have a manufacture date that is within 12 months of the date of loan
closing. The manufactured home must be affixed with a data plate located inside the home in which the date the unit was manufactured can be found. The certification label must be affixed in a location that will remain visible after all work is completed that is necessary to complete the installation of the home at the home site.
x As an alternative to the original HUD Certification Label(s), the
lender may obtain a verification letter with the same information contained on the HUD Certification Label(s) from the Institute for Building Technology and Safety (IBTS). A duplicate HUD Data Plate may be available from IBTS or by contacting the In-Plant Primary Inspection Agency (IPIA) of the manufacturer. A list of IPIA and DAPIA offices is posted on HUD’s website.
o Construction and site requirements for new dwellings can be found in
section 13.11.
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x Purchase of an eligible existing unit and site. The following criteria outlines an
eligible unit manufactured unit for guarantee under the SFHGLP:
o Must be an existing unit that has never been previously installed on a
different homesite.
o Must have a floor area of not less than 400 square feet.
o Must have not had any alterations or modifications since construction in
the factory, except for porches, decks, or other structures which were built to engineered designs or were approved and inspected by local code officials.
o Must be installed on a permanent foundation in accordance with the
manufacturer’s requirements and HUD installation standards. Guidelines are presently published in the “Permanent Foundation Guide for Manufactured Housing” (HUD-4930.3G). Certification of a proper foundation is required.
o Must meet or exceed the Federal Manufactured Home Construction and
Safety Standard (FMHCSS) Uo Value Zone for the geographic area.
o Must have a manufacture date that is within 20 years from the date of loan
closing and meets or exceeds the Federal Manufactured Home Construction and Safety Standard (FMHCSS) as evidenced by both an affixed HUD Certification label and HUD Data Plate. The manufacture date can be found on the data plate located inside the home.
x As an alternative to the original HUD Certification Label(s), the
lender may obtain a verification letter with the same information contained on the HUD Certification Label(s) from the Institute for Building Technology and Safety (IBTS). A duplicate HUD Data Plate may be available from IBTS or by contacting the In-Plant Primary Inspection Agency (IPIA) of the manufacturer. A list of IPIA and DAPIA offices is posted on HUD’s website.
x Financing of an existing unit due to a transfer of an existing Section 502 Direct or
Guarantee loan or purchase of a Real Estate Owned (REO) property. Repairs associated with these transactions may be included.