Underwriting and DU Requirements
Mortgages secured by manufactured homes (including MH Advantage properties) must be underwritten through DU.
When entering the property information into DU, the lender must correctly identify the property type as either:
- Manufactured Home,
- Manufactured Home: Condo/PUD/Co-op, or
- Manufactured Home: MH Advantage.
DU checks the subject property addresses against manufactured home property addresses in the DU property database. If DU’s database indicates the property may be a manufactured home, DU will return a message alerting the lender. DU’s issuance of this message does not necessarily mean the property is a manufactured home, nor does the absence of this message indicate that Fannie Mae accepts the accuracy of the property type as it was submitted
Lenders must research the subject property type. If it is determined the property is a manufactured home, the lender must correct the property type and resubmit the loan casefile to DU. If it is NOT a manufactured home, the loan may be delivered with the appraisal recommendation provided by DU.
When Manufactured Home: MH Advantage is provided, DU will issue a message reminding the lender to ensure that the MH Advantage requirements are met, in addition to all other manufactured housing requirements.
For additional information, see B5-2-03, Manufactured Housing Underwriting Requirements.