FHA Mortgages

Frequent Questions About FHA Cell House Loans


FHA home loan options include FHA mobile home mortgages. You can buy a mobile home, prefab, or modular home with an FHA mortgage, and there are many common questions about this type of FHA mortgage option.

What does the FHA define as a prefabricated house?

The FHA’s official website describes a mobile home (also known as a prefabricated home) as a property “built according to Manufactured Home Construction and Safety Standards (HUD) codes with a red certification label on the outside of each portable section”.

The FHA’s official website also states that prefabricated houses are built “in the controlled environment of a manufacturing facility” and transported in one or more sections on a permanent chassis. According to FHA loan regulations, each mobile home must be attached to a permanent foundation approved by HUD as a condition of loan approval.

Prefabricated house versus modular home?

For FHA loan approval, is there a difference between a mobile home and a modular home? According to the FHA, prefabricated houses are “built according to a code administered by the US Department of Housing and Urban Development.” This so-called HUD code requires that any prefabricated house purchased with an FHA mortgage “be built on a permanent chassis”.

Modular homes, however, differ in a few ways, but are generally built under the jurisdiction of the same state, local, or regional building codes as “locally built” homes. In either case, the modular home can be approved for an FHA mortgage if it meets the FHA and lender requirements.

FHA home loan options for mobile, modular, and manufactured homes

The official HUD website advises consumers that there are two basic mobile home / prefab options.

“HUD’s FHA program insures two types of mortgage. Title II insures mortgages on qualified prefabricated houses that are sold with land and meet other requirements. The FHA’s Title I program can provide information to consumers interested in HUD insured loans. ”

The official HUD website also mentions an option for those looking to buy or build a mobile home park.

“You can contact the Apartment Building Office” for information about a program called Section 207. “This is an FHA mortgage insurance program for HUD-approved lenders that is promoting home creation by increasing the availability of affordable finance and mortgages.”

Problems installing the mobile home

Some FHA borrowers want to know who to contact in case there are problems with the mobile home / prefab home delivery and installation. FHA / HUD are not the point of contact for such problems. You need to contact the dealer and / or the installer to resolve any issues in this area.

Not all FHA lenders are ready to offer mobile home loans. You need to look for the right lender who can work with you and offer the right type of mortgage loan for your needs.


Linda Garcia

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