FHA Engineer’s Inspection and Certification
With the increasing popularity of the Reverse Mortgage loan product for those homeowners 62 and older, loan processors are dealing more and more with manufactured Degree attestation services homes in their portfolios. Many seniors have chosen the manufactured home communities as a retirement refuge and the community and recreational atmosphere lend itself well to word-of-mouth referrals and the spreading the news about FHA and Reverse Mortgage Loans benefits. However, the manufactured home loan presents a new set of criteria for the loan officer and loan processor as well as the borrower so be prepared ahead of time. Certain criteria are absolutes:
- The manufactured must be a HUD home, which means it must be manufactured after June 15, 1976. If there are metal plates at the rear of the home that begin with a three Alpha letters like CAL, ARZ, ORE, that’s usually a good sign. If the HUD label is missing, usually a label verification letter from the Institute for Building Technology and Safety (IBTS) which will give the provenance of the home will suffice. 2. The Manufactured homes and FHA Insured Loans is classified and taxed as real estate. A long term lease may also be acceptable in certain instances. 3. The axles and tongues must be removed. 4. The manufactured home must have an adequate perimeter enclosure with appropriate ventilation. 5. Must have a floor area of not less than 400 square feet 6. Built and remains on a permanent chassis 7. The finished grade elevation beneath the manufactured home shall be at or above the 100 year return frequency flood elevation. 8. The home must sit on a permanent foundation.
AND All foundation systems, new and existing, must meet the guidelines published in the HUD Permanent Foundations Guide for Manufactured Housing, (HUD-7584), dated September 1996. A certification attesting to compliance with this handbook must be obtained from a licensed professional engineer and included in the insuring file.
This last requirement can throw the loan processor into a quandary if they have never expedited a manufactured home transaction previously because this request will often show up at the 11th hour of loan closing. Nine times out of ten the appraisal report will show that the home is on a foundation system so the processor or loan officer won’t have alarm bells off of worry going off when they receive this condition. Unfortunately, the appraiser often simply determines “permanence” strictly on the basis that the tires and axles have been removed or some other vague set of standards, not on the basis of the foundation attachmen