B5-2-02, Manufactured Housing Loan Eligibility (11/06/2024)

Fannie Mae purchases loans secured by manufactured homes that meet the following general criteria:

• first-lien mortgages only,

• fully amortizing fixed-rate loans,

• fully amortizing ARM loans with initial fixed-rate periods of 7 years or 10 years,

• principal residences (single- and multi-width), and

• second home dwellings (multi-width only).

Refer to the Eligibility Matrix for additional restrictions and maximum allowable LTV, CLTV, and HCLTV ratios.

A manufactured home may be located on an individual lot or in a condo or PUD project development, see Project Review Methods in  B4-2.1-01, General Information on Project StandardsB4-2.1-01, General Information on Project Standards  for additional information. A manufactured home located on leased land and subject to a ground lease is only eligible if the manufactured home is owned (not leased) by the borrower and in a condo or PUD project approved by Fannie Mae's Project Eligibility Review Service (PERS), see B4-2.2-06, Project Eligibility Review Service (PERS)B4-2.2-06, Project Eligibility Review Service (PERS). 

See  B5-5.3-03, Shared Equity Transactions: Eligibility, Underwriting and Collateral RequirementsB5-5.3-03, Shared Equity Transactions: Eligibility, Underwriting and Collateral Requirements when a manufactured home is subject to a community land trust.

The following are ineligible for loans secured by manufactured housing:

• investment properties,

• manufactured homes located on leased land and subject to a ground lease, unless located in a Fannie Mae-approved condo or PUD project, and

• manufactured homes in co-op projects.

The loan must be secured by both the manufactured home and the borrower's interest in the land on which it is situated, and both the manufactured home and the land must be legally classified as real property under applicable state law.

See B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built HousingB2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built Housing, for additional information.