FHA Mortgages

FHA Cellular House Loans: What You Want To Know

fha-cellular-house-loans-what-you-want-to-know

FHA home loans are available for a variety of things, including RVs, prefabricated homes, and modular homes. What Do You Need to Know About FHA Program RV Loans?

Mobile home loans are specific

The home you buy with an FHA mortgage must be classified as real estate, which means it must be taxable as real estate whether or not it is actually taxed in your state. Real estate refers to real estate that has a permanent basis. RV FHA loans fall under the Title 1 program.

RVs that are not permanently attached to a permanent foundation that meets FHA standards cannot be approved for an FHA home loan.

FHA mobile home loan for land and home

Yes, FHA mortgages can be approved to cover the cost of the mobile home and the property it is to be placed on. Remember that the above permanent foundation rules apply if you buy the land and home together – you must plan to add the home to a permanent foundation or the lender will not approve your loan.

Mobile homes can cost less than other types of housing

This is one reason why RV loans are so attractive. Investopedia reports that the average price of a new RV / prefabricated house (as of October 2020) is around $ 85,000. Single wide mobile homes are closer to $ 60,000 and double wide mobile homes can go as high as $ 110,000, according to Investopedia report. The lower price means a lower down payment and easier mortgage payments.

Mobile homes have unique requirements

Mobile homes manufactured prior to June 15, 1976 will not be eligible for an FHA mortgage. Prefabricated houses must be 400 feet or more in floor area. Total floor space less than 400 feet cannot be approved for an FHA mortgage.

RV credit limits

In 2021, the FHA mobile home loan limit in typical areas for a combined RV and land purchase is $ 92,904. The FHA loan limit for the RV alone is $ 69,678 in typical cost ranges. There is also an FHA loan limit on land-only purchases (aiming to buy and develop the plot of land for an RV rather than simply buying vacant land) of $ 23,226.

The FHA’s maximum loan periods range from 15 to 20 years, depending on certain variables, according to FHA.gov:

  • 20 years for a loan on a prefabricated house (or on a one-piece prefabricated house and plot of land)
  • 15 years for a prefabricated home loan
  • 25 years for a loan for a multi-part prefabricated house and plot of land

Participating Lenders and FHA Mobile Home Loans

Not all FHA lenders offer mobile home loans. Some can and some cannot. You need to look around for a lender to find one with the best terms on your mortgage.

Find out more about the path to home ownership
Take the guesswork out of buying and owning a home. Once you know where you want to go, we’ll get you there in 9 steps.

Step 1: How Much Can You Afford?
Step 2: Know Your Home Buying Rights
Step 3: basic mortgage terminology
Step 4: buy a mortgage
Step 5: shopping for your home
Step 6: Make an offer to the seller
Step 7: get a home inspection
Step 8: home insurance
Step 9: what to expect upon graduation

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