B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built Housing (11/06/2024)

• the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976, as amended and in force at the time the home is manufactured; and

• additional requirements that appear in HUD regulations at 24 C.F.R. Part 3280.

Compliance with these standards will be evidenced by the presence of either a HUD Data Plate or the HUD Certification Label(s) for each section of the home for existing construction. If the original or alternative documentation cannot be obtained for either of these, the loan is not eligible for sale to Fannie Mae. (Both are required for new construction).

The HUD Data Plate is a paper document located on the interior of the subject property that contains, among other things, the manufacturer’s name and trade/model number. In addition to the data required by Fannie Mae, the Data Plate includes pertinent information about the unit, including a list of factory-installed equipment. The HUD Certification Label(s), sometimes referred to as a HUD “seal” or “tag,” is a metal plate located on the exterior of each section of the home. The Manufactured Home Appraisal Report (Form 1004C) must have photos of either the HUD Data Plate or the HUD Certification Label(s).

As an alternative to the original HUD Certification Label(s) or the HUD Data Plate, the lender must obtain either a label verification letter with the same information contained on the HUD Certification Label(s) or duplicate HUD Data Plate from the Institute for Building Technology and Safety (IBTS). A duplicate HUD Data Plate may also be available by contacting the In-Plant Primary Inspection Agency (IPIA) or the manufacturer. (A list of IPIA offices is posted on HUD’s website.)

The manufactured home must be at least 12 feet wide and have a minimum of 400 square feet of gross living area.

Except for MH Advantage properties, Fannie Mae does not specify other minimum requirements for size, roof pitch, or any other specific construction details for HUD-coded manufactured homes.

The manufactured home must be attached to a permanent foundation system in accordance with the manufacturer’s requirements for anchoring, support, stability, and maintenance.

The foundation system must be appropriate for the soil conditions for the site and meet local and state codes.

If the property is not situated on a publicly dedicated and maintained street, then it must be situated on a street that is community owned and maintained, or privately owned and maintained.

There must be adequate vehicular access and there must be an adequate and legally enforceable agreement for vehicular access and maintenance. See B4-1.3-04, Site Section of the Appraisal ReportB4-1.3-04, Site Section of the Appraisal Report, for additional information about privately maintained streets.

Mortgages secured by existing manufactured homes that have incomplete items, such as a partially completed addition or renovation, or defects or needed repairs that affect safety, soundness, or structural integrity, are not eligible for purchase until the necessary work is completed.

Exceptions to the foregoing may be made only for minor items that do not affect the ability to obtain an occupancy permit — such as landscaping, a driveway, or a walkway – subject to all requirements and warranties for new or proposed construction provided in B4-1.2-05, Requirements for Verifying Completion and Postponed ImprovementsB4-1.2-05, Requirements for Verifying Completion and Postponed Improvements.

• ensure the property meets the MH Advantage requirements by reviewing appraisal photos evidencing the presence of the MH Advantage Sticker (placed in proximity to the HUD Data Plate), and either the HUD Data Plate or the HUD Certification Label(s) for existing construction. (Both are required for new construction.)

• verify through appraisal, Appraisal Update and/or Completion Report (Form 1004D), completion alternatives, or photos

  • the presence of a driveway leading to the home (or to the garage or carport, if one is present). The driveway must consist of blacktop, pavers, bricks, concrete, cement, or gravel (gravel must have a minimum depth of four inches), and;

  • the presence of a sidewalk connecting either the driveway, or a detached garage or carport, to a door or attached porch of the home. The sidewalk must consist of blacktop, pavers, flagstone, bricks, concrete, or cement.

• For new construction, the lender is responsible for compliance with Fannie Mae’s standard appraisal requirements, specifically B4-1.2-05, Requirements for Verifying Completion and Postponed ImprovementsB4-1.2-05, Requirements for Verifying Completion and Postponed Improvements and, B4-1.4-01, Factory-Built Housing: Manufactured HousingB4-1.4-01, Factory-Built Housing: Manufactured Housing for appraisals based on plans and specifications. This will ensure site improvements that are not attached to the home, such as detached garages, are complete.

• B4-1.3-05, Improvements Section of the Appraisal ReportB4-1.3-05, Improvements Section of the Appraisal Report

• B4-1.3-10, Cost and Income Approach to ValueB4-1.3-10, Cost and Income Approach to Value

• B4-1.4-01, Factory-Built Housing: Manufactured HousingB4-1.4-01, Factory-Built Housing: Manufactured Housing

The Manufactured Home Appraisal Report (1004C), Appraisal Update and/or Completion Report (Form 1004D), or completion alternatives must include photos of the MH Advantage Sticker, and either the HUD Data Plate or the HUD Certification Label(s), and the site showing all driveways, sidewalks, and detached structures located on the site.

Note: The requirement of photos of either the HUD Data Plate or the HUD Certification Label(s) applies to existing construction. (Both are required for new construction.)