Reverse Mortgage Manufactured Home Requirements (2024)

September 6, 2022

If you’re the owner of a manufactured home and you’re wondering about your eligibility for a reverse mortgage, here’s the short answer: you may be eligible. Now for the longer answer.

As with any prospective borrower, you must be 62 or older, legally own the home, be your primary residence, and be eligible for participation in Federal Housing Administration programs.

And if you have a manufactured home, yes, you can get a reverse mortgage—as long as it was built after June 15, 1976. Why is this particular date so important? It was when the Department of Housing and Urban Development (HUD) started regulating the construction of manufactured homes under established guidelines. (Homes from before this date will not qualify for FHA-insured loans)

In 2009, manufactured units in condominium projects became eligible for FHA-insured reverse mortgages as long as they (like all other manufactured homes) met HUD guidelines.

Table of Contents

• Reverse Mortgage Manufactured Home Requirements

• What This Could Mean for You

• Characteristics of Manufactured Homes

• 2024 HUD Manufactured Home Update

• Quick Manufactured Home Checklist

• Manufactured Home Eligibility for HECM Reverse Mortgages

• Top FAQs

Reverse Mortgage Manufactured Home Requirements

The home’s floor area must be at least 400 square feet (the average size in 2010 was 1,515 square feet).
The structure must be built and remain on a permanent chassis, connected to the foundation through welds, bolts, and various light-gage metal plates.
The home must have a seal showing it was constructed in conformance with Federal Manufactured Home Construction and Safety Standards. If your home was constructed after June 15, 1976, it will have this seal.
The finished grade elevation beneath the manufactured home or, if a basement is used, the lowest finished exterior grade adjacent to the perimeter enclosure shall be at or above the 100-year return frequency flood elevation.
The home must be classified and taxed as “real estate” and cannot have been installed or occupied previously at any other site or location.

*Manufactured homes are often called “mobile homes; however, a truly mobile home in which you do not own the land and are not taxed as real estate is not eligible for any FHA reverse mortgage loan.

What This Could Mean for You

Finding a reverse mortgage lender might be complicated even if your manufactured home was built after June 15, 1976. Some require a minimum appraised property value, and in other instances, origination fees may run a little higher than for other types of dwellings because an engineering company requires an extra foundation inspection to ensure it complies with HUD’s acceptable foundation requirements.

Another issue could be the value of the land on which your home is located. Manufactured homes on large acreage can be challenging to get approved since the land’s value could account for more of the appraised property value than the house itself. These sorts of cases can be tricky for loan underwriters.

Characteristics of Manufactured Homes

According to U.S. Census data, 50,000 new manufactured homes were built in the United States in 2010, with the majority located outside of manufactured home communities. The South, with 34,000, leads all other regions in the number of manufactured homes.

According to Census data, the average sales price of a manufactured home (single- and double-wide) in 2010 was $62,800, the lowest since 2007, when prices peaked at $65,400. The Western region led sales prices with an average of $79,100.

2024 HUD Manufactured Home Update

HUD has particular guidelines for Manufactured homes, and very few lenders will still do them, but they can be done.

HUD/FHA requirements/guidelines:

Minimum Square Footage of 400 Square Feet* (current lender requirements are greater)
The property must be constructed after 1976 and meet HUD guidelines certified by HUD Label 24 CFR 3280.11.
Must be classified and taxed as real estate (must have turned in DMV registrations to favor real property).
It was built on and remains on a permanent chassis.
It was designed to be used with a dwelling with a permanent foundation built to FHA criteria.
Finished grade elevation beneath the home or if a basement is used, the basement floor must be at or above the 100-year flood elevation (however, lenders will no longer accept a manufactured home in a flood hazard area).
Must be situated on a permanent foundation
Requires an engineer’s certification on the foundation
borrowers must own the land

A previous foundation inspection for manufactured homes can be reused if it was conducted for an earlier FHA loan.

Additional Lender requirements/guidelines:

The comparable sales for the appraisal must be available within 1 mile in urban and suburban areas and 20 miles in rural areas.
The sales cannot require excessive adjustments, or the property will not be acceptable.
All Sections of the Home must have HUD tags accessible to the appraiser.
The appraiser must indicate that the home’s seal has not been compromised and that any structural modifications or additions pose no issues.
All credit reports must be verified as having no personal liens pertaining to the dwelling.
No single wide units.
No units are located in a manufactured condominium complex.
Units must be on their original site. Homes moved from other previously installed sites are ineligible.

Source: Transmittal: Handbook 4000.1 Source

Quick Manufactured Home Checklist

Ensure that all property values are well-supported and that the property is readily marketable.
All HUD Cert Labels/HUD Data Plates are indicated. All sections of the manufactured home must have affixed HUD cert labels located outside the house. Appraisers must list the manufactured unit’s label in one of the Comment sections on the appraisal report. HUD Data Plate Compliance Cert is typically found inside a cabinet in the home. If HUD labels and data plates are not ATTACHED to the exterior or interior of the home, and pictures are not provided, we require an IBTS label verification letter or data plate/performance certificate form—order tags verifications at https://lvr-requests.ibts.org/#/LandingPage.
Structural modifications or additions. If the appraiser notes additions or alterations to the manufactured housing unit, the Lender must ensure the addition was addressed in the foundation certification.
General Guidelines Met: The Appraiser or Structural Engineer must verify that the Manufactured home meets the revised guidelines outlined in the 4000.1.

Structural Engineer’s Report

Engineer’s Certification Report:
A certification attesting to compliance with the Permanent Foundations Guide for Manufactured Housing, dated September 1996, must be obtained from a licensed professional engineer. This certification must be within 6 months of loan closing and indicate the engineer’s seal.
Structural modifications or additions: The certification must indicate that structural changes or additions to the property were made following HUD Manufactured Home Construction and Safety Standards.

Liens

Lien(s) against Manufactured Home: The credit report should be carefully reviewed to determine if existing liens against the manufactured home are separate from any liens against the land.

Title Requirements

Title Purged and Taxed as Real Property: The manufactured home must be taxed as real property, and the file must contain evidence that the original title to the home was purged. The title must also provide the applicable endorsement on the final policy (CLTA 116.5, ALTA 7, FL 7, TX T‐31).

Ineligible Manufactured Homes

Year built before June 15, 1976: Homes built before June 15, 1976 are ineligible.
Moved from the original site: Homes previously installed or occupied at any other site are ineligible. The home must have never been moved from the original site other than from the dealership to the property location.
Flood Zones: Manufactured homes in a Flood Zone or partially within a Flood Zone are ineligible.
Home is on a land lease or leasehold: Manufactured homes on leased land that the borrower does not own are ineligible.
Home is in a flood zone below the base flood elevation: Homes located in a flood zone AND below the base flood elevation are ineligible.

New Construction Manufactured Housing (Delivered Within Past 12 Months)

New Construction Manufactured homes are subject to the following additional guidelines:

Certificate of Occupancy or equivalent

Manufactured Home Eligibility for HECM Reverse Mortgages

Eligibility Criteria	Details
FHA Requirements	The home must comply with FHA Manufactured Home Permanent Foundation requirements.
Age of Home	The home must have been built after June 15, 1976, and display HUD tags.
Property Title	The home must be titled as real estate and not as personal property.
Minimum Size	The home must meet a minimum size requirement, typically over 400 square feet.
Primary Residence	The manufactured home must be the borrower’s primary residence.
Home Condition	The home must be in good repair and meet HUD’s safety, security, and structural integrity requirements.

This table provides detailed information on the specific eligibility criteria that a manufactured home must meet to qualify for a HECM reverse mortgage. These criteria include FHA compliance, the age of the home, property title requirements, size, property taxes, primary residence status, and overall condition of the home.

Top FAQs

Can you get a reverse mortgage on a manufactured home?

Manufactured homes have specific requirements to meet HUD eligibility criteria but are allowed if they meet the HUD parameters.

What’s the difference between a manufactured and a mobile home?

A mobile home is not on a permanent foundation, can be moved, is taxed as personal property, and is registered with the DMV. A manufactured home is on a permanent foundation, all trailers have been removed, is taxed as real property and no longer has a DMV registration.

Does my manufactured home require HUD tags?

To be eligible for a reverse mortgage, the manufactured home must have been built after June 15, 1976, and have the HUD tags affixed to the home.

Can I get a reverse mortgage on a single-wide manufactured home?

Manufactured homes must be a minimum of a double-wide home. Single-wide properties are not eligible.

Can you purchase a manufactured home using the reverse mortgage?

You can use a reverse mortgage to purchase an eligible manufactured home under HUD guidelines, but we do not advise. You would need to be sure that you have enough time for all inspections in your purchase contract before you lose your deposit and become obligated to purchase, which would also include the appraisal. It is almost impossible to know if the property will meet HUD requirements within the normal 7 – 10 days most sellers give buyers to remove contingencies.

Do manufactured homes have to be built after 1976?

The HUD manufactured home program was started on June 15th, 1976, and therefore, a manufactured home must have been built after that date and have the HUD tags on the structure. HUD permits lenders to implement their own guidelines above and beyond the minimum requirements that HUD sets; therefore, some lenders require the manufactured home to be built after 1990.

ARLO recommends these helpful resources:

What are the Reverse Mortgage Property Requirements?

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Have a Question About Reverse Mortgages?

Look no further. Michael G. Branson, our CEO, brings a wealth of knowledge directly to you. With a robust 45-year tenure in mortgage banking and 20 years dedicated solely to reverse mortgages, he's the expert you want on your side.

Post your question in the comments below and anticipate a personalized response from Mr. Branson himself, typically within one business day. He's here to illuminate all angles of reverse mortgages, ensuring you're equipped with the knowledge to make informed decisions. Take this opportunity to gain insights from a seasoned professional.

64 Comments on this Article

Kathie L.
July 11th, 2024

Hi, just a quick question, I meet all the requirements for a manufactered home except my home is a pier and beam foundation. Does that meet criteria? Thank you
Reply to Kathie
- Michael Branson
  July 16th, 2024
  Hello Kathie,
  Every manufactured home requires a foundation inspection. If the foundation is permanent and the home is affixed in an acceptable manner, it would pass that requirement. I cannot tell you that it would or would not meet the criteria without receipt and approval of the inspection.
  
  HUD's concern for non-permanent foundations is that they could potentially shift over time which could possibly adversely affect both the marketability and future value of the home. Therefore, HUD has some specific guidelines that manufactured home on post and pier foundations must meet to ensure structural integrity. Some of the Key points are:
  And again, all foundations are subject to inspection. The only way to know for certain if your home will meet the HUD guidelines for the foundation will be if it meets those requirements above and then the results of that foundation inspection.
  Reply to Michael
Bob K.
July 2nd, 2024

Does my son's camper affect the HUD appraisal on my manufactured home?
Reply to Bob
- Michael Branson
  July 2nd, 2024
  
  Hi Bob,
  If it is just a vehicle parked on the property, the appraiser most likely would not even make mention of it. However, if it is permanently affixed to the land in some manner, it would be a problem.
  Manufactured homes are already more difficult to use to secure a reverse mortgage because of the requirements. If you have additional structures on the property, it would most likely not meet the HUD requirements. It will really depend though, on what the "camper" consists of, and what the appraiser determines when the inspection is done.
  Reply to Michael
Anne K.
September 20th, 2023

Hello ARLO,

Can I get a reverse mortgage on a Park Model with an attached Arizona room? The total square footage is approximately 780 square feet. For this question, let's assume that the park model meets the HUD requirements for age, attachment to a permanent foundation that has never been moved, etc. Also, assume that the Arizona room construction was done to HUD standards.
Reply to Anne
- Michael Branson
  September 20th, 2023
  
  Hello Anne,
  Everything you have told me meets HUD standards, so I have to believe the devil is in the details you omitted. For example, a Park Model is a term used for a very small manufactured home, most often consisting of less than 400 square feet. HUD's minimum square footage requirement for a manufactured home is 400 square feet. The fact that the home also has an addition would not change the fact that the basic manufactured home itself does not meet the minimum requirements if the size of the home is less than 400 square feet before the addition. The next question would be, where is the home situated? Is it on your land, and does the land ownership meet minimum requirements? In other words, if this sits on a rented space in a park, it would not be eligible regardless of the size. Finally, one question that comes to mind that might be a tough one for you to answer off the top of your head but would make a world of difference for the viability of the loan is whether there are adequate recent sales of similar properties available for an appraisal under HUD guidelines.
  Some of the biggest problems we have when attempting to place reverse mortgages on units come when attempting to get an approved HUD appraisal. There must be a minimum of 3 recent sales ( two of which must be manufactured homes within 90 days normal with a little room in some cases to go a little longer) that are supposed to be in the subject property's proximity to allow the appraiser to draw a conclusion of value and justify that value with adjustments to the comparable sales based on the differences in the properties. In most cases, it is challenging to find 3 closed, recently closed sales of similar properties when working with manufactured homes. I cannot even wonder how difficult it would be for an appraiser to find sales of similar Park Model-type properties.
  However, to answer your question, yes, it is possible to get a reverse mortgage on a Park Model consisting of 400 Square Feet or more (using only the living areas of the original unit that are at least 7 feet in height and no bay windows, roof overhangs drawbars, couplings, or hitches in the length measurement to meet the minimum 400 square feet) that meets all other HUD requirements. The appraiser must condition the appraisal for inspection of the addition by a state or local jurisdiction agency that inspects manufactured housing for compliance, or a licensed structural engineer may report on the structural integrity of the manufactured dwelling and the addition if the state does not employ inspectors and all additions must be under local zoning laws.
  Reply to Michael
Darlene L.
June 23rd, 2023

Hello ARLO,

I live in a Mobile home which I paid in full when purchasing. I am 69 years old, on Social Security, and was considering selling it till I thought about a reverse mortgage loan. Am I eligible for one?
Reply to Darlene
- Michael Branson
  June 23rd, 2023
  
  HUD will allow manufactured homes that meet their requirements. The home must have been built after 1976 with a HUD tag, it must be located on a lot you own, it must be permanently affixed to the land, and how it is attached must be approved by HUD.
  There must be adequate sales of other manufactured homes in the area, allowing the appraiser to come to a value conclusion. The unit must be on the original site it was placed after it left the factory (it cannot be moved from multiple locations to its current location).
  The best way to determine if your home is eligible is to contact a reverse mortgage specialist and let them review all the HUD requirements with you, what your home's most likely value would be based on sales of similar properties in the area.
  Then you can discuss what you expect to receive with a reverse mortgage for your property under the program to see if it meets your needs before ever spending any money to proceed.
  Reply to Michael
Bob S.
April 1st, 2023

Hello Arlo,

We have 6.48 acres with a 2,400 SF modular home that was built in 2013. I've added a steel garage structure 32' X 40' and a 20' X 20' steel carport.

Both Zillow and Trulia place the value at $327,200 and we own $128,000.

Do you think this property would qualify for a reverse mortgage? We are looking to eliminate a monthly mortgage payment.
Reply to Bob
- Michael Branson
  April 1st, 2023
  
  Hello Bob,
  
  HUD does allow manufactured homes on their own lot, and your description would not automatically make it eligible or ineligible. If the home is genuinely modular (not manufactured), it is underwritten like a stick-built home. But the biggest issue for modular homes can be the same as manufactured homes depending on how the home is constructed, and that is typically the ability to get an acceptable appraisal to HUD.
  The home must conform to the area, and there must be adequate sales of similar properties for the appraiser to substantiate a value. If the modular home conforms to other homes in the area and plenty of recent sales of comparable properties are available for the appraiser to determine the value, you are probably OK.
  Suppose your modular home is obviously different in size and style than all the other homes in the area. In that case, the underwriter will require sales of similar properties or will determine that the appraiser cannot substantiate the value by HUD requirements and would not approve the loan. This is true of any dissimilar property. It might be a very nice home, but if there are no other properties in the area like it or sales of similar properties, it may not be eligible for an FHA-insured loan (which the HUD HECM reverse mortgage is).
  
  The good thing, though, is that if you let your lender know the specifics about your property from the beginning, they cannot tell you that it will or will only meet all HUD parameters once a HUD-approved appraiser has performed an appraisal. Still, they can pull up the sales in your area and will have a pretty good idea from the start of what you will be working with.
  Reply to Michael
Rhonda C.
February 9th, 2023

I'm about to lose my home. Can I get a reverse mortgage on my mobile home? It's a 16x80 and I own the property it sits on. My dob is 5/6/70 and my husband is 3/4/68. Need something done by the 14th.
Reply to Rhonda
- Michael Branson
  February 11th, 2023
  
  Hello Rhonda,
  
  I absolutely hate being the bearer of bad news, but I think you have several issues that are not in your favor here. I'm not even sure which is first and foremost. Your ages are too young for a reverse mortgage as the HUD HECM program requires borrowers to be a minimum of 62 years old and your husband being the older is just about to turn 55 so he's still 7 years too young. If he was 62, you might be able to get the loan if your property met the HUD requirements, but if you are talking about needed to have a loan closed by the 14th of February, there would be no way to start and finish a loan in that amount of time.
  To get a reverse mortgage, borrowers must first go through the HUD counseling then apply, the property must be appraised and inspected so that it can be determined if the foundation on a manufactured home meets the HUD requirements of a permanent foundation. I would estimate that a loan on a manufactured home would take at least 30 days and probably closer to 45 days. Also, HUD has different rules for borrowers who have been delinquent on mortgages, taxes, or insurance in the past 2 years and from your comments, I can only assume that your existing loan is delinquent which may affect the amount of money you would receive or your qualification for a reverse mortgage entirely.
  
  I'm not sure how I would advise you if you were 62 or over because if you have not even started the process and only had 5 days until your deadline, you cannot be sure your home meets the HUD property requirements and therefore, I would not advise you to look at short-term solutions with the reverse mortgage possibly being the long-term answer unless you have an originator look at your property, your qualifications and determine that you and the property all meet HUD requirements before doing anything. Then and only then, perhaps you could seek an extension on your immediate problem that requires you to do something to close the reverse mortgage by the 14th or could seek the help of an attorney to postpone that date. As it is though, there is no way a reverse mortgage is an option for you at this time.
  I would still suggest you seek the counsel of an attorney who specializes in debt issues to see if there is some way to remove your immediate deadline. I wish I could be of more assistance.
  Reply to Michael
Michelle B.
February 20th, 2022

Hi Arlo.

I am interested in buying a manufactured home that had a reverse mortgage. The owner has passed and his son isn't trying to save it. The amount that would be owed is about $200,000. But the property value is between $400k -$450k. How can I get this from the bank before it has a huge price tag on it?

FYI: Owner passed away 14 months ago.
Reply to Michelle
- Michael Branson
  February 22nd, 2022
  
  Hello Michelle,
  
  If the home has not yet gone through foreclosure, the bank can't sell it - they don't own it. The house is still owned by the borrower's heirs or estate.
  If you are certain that the son has no intention of keeping the home or placing it on the open market for sale, you might try approaching him if he has the authority to sell the home to see if he will sell to you before the lender forecloses.
  If you wait until the home goes into foreclosure, with that much equity, I would bet it would be bought at the foreclosure sale by an investor or another family before the bank would get it.
  The bank will start the foreclosure sale at the amount owed and if no one bids any higher, then the bank would own the property due to no competing bids. With that much equity, there would most likely be other bids at the sale and then the home would go to the highest bidder.
  The bank would get what is owed to them and the borrower's estate would get anything over and above what is owed. If you do not want to get into a bidding war, I would try the son.
  Reply to Michael
Vickie W.
October 8th, 2021

Hello Arlo,
I'm 73 house is paid for it's a mobile home on one acre. The tax assessor that I pay says it is worth $48,000 but with the Corsicana Texas housing market growing, I've been told to ask $70,000 if I want to sell. I would like to get a reverse mortgage or $30,000 do I have a chance? I am a widow, but I do have a renter & my credit is fair. Don't want to move, income w/renter is about $30,000 for both of us. Thank you!
Reply to Vickie
- Michael Branson
  October 8th, 2021
  
  Hello Vickie,
  
  If your home meets all the HUD requirements, it would be possible to get a reverse mortgage on a manufactured home with those parameters. The home must be on a permanent foundation, it must be in its original destination since leaving the factory, must have been manufactured after 1976 and there must be adequate recent sales of similar properties for the appraiser.
  I would suggest you talk to a reverse mortgage lender to have them check your circumstances and the sales in the area before you spend money on counseling and an appraisal just to find out that the home would not meet the HUD guidelines. The if it does, you will also know about what you can expect from the loan given your circumstances and based on the most recent sales. Remember, the appraised value will be based on the comparison of similar sales.
  The appraiser must compare your property to actual sales and adjust for differences between your home and others that have sold to determine a value based on historical data, not what someone thinks you might be able to get if you were to sell now but what others have sold for with adjustments for differences between the properties.
  Reply to Michael
Deb J.
August 10th, 2021

Can you take a reverse mortgage out on a manufactured home that you own that is in a park where you pay lot rent?
Reply to Deb
- Michael Branson
  August 10th, 2021
  
  Hello Deb,
  
  A reverse mortgage is available on manufactured homes that are permanently affixed to the land (which become real property) that you own. The loan is not available for homes in rental parks where you do not own the land.
  Reply to Michael
Linda S.
February 15th, 2021

I own a doublewide manufactured home with my brother. Can I get a reverse mortgage without him on my share of the home?
Reply to Linda
- Michael Branson
  February 15th, 2021
  
  Hello Linda,
  
  Unfortunately, you cannot only encumber half of a property owned jointly with someone else. There would be no way to enforce the terms of any loan if the lender could not call the loan due and payable in the event of a default, and there would be no way to enforce such an action on just half the property.
  And more specifically, with a reverse mortgage, you would both need to be living in the home or your brother could not be on the loan (which is ok), and that would mean that at the time you passed or were no longer living in the home, the loan would become due and payable requiring your brother to refinance the loan or sell the property at that time.
  Reply to Michael
Bea
September 1st, 2020

I have 2 questions. #1 Does modular homes qualified for a reverse mortgage? For an example, I do know that modular homes are moved to a person's property, put on a permanent foundation and completed after installed. They must purchase a building permit and pass all code inspections by law; and get a CO. What else would be required?
Reply to Bea
- Michael Branson
  September 1st, 2020
  
  Hello Bea,
  
  HUD has a very precise list of requirements that must be met for Manufactured Houses, but modular homes are typically treated as stick-built homes.
  A true modular home is one that is built in sections in one location and then then final assembly is completed on site.
  Once fully completed, it is often hard to tell a modular home from a stick-built property as they are built using the materials and techniques. There are no special requirements for a true modular home.
  It must conform to the area and there must be adequate comparable sales for the property available for the appraiser but the same is true for all homes.
  Reply to Michael
Ann C.
June 8th, 2020

I am 63 years old and own my home however I pay a monthly ground rent. Am I eligible for a reverse home mortgage?
Reply to Ann
- Michael Branson
  June 8th, 2020
  
  Hello Ann,
  
  If you are paying monthly ground rent, that would lead me to believe you are most likely located on leased land. HUD does allow for leased land, but their restrictions make it very difficult to qualify.
  You cannot have a manufactured home on leased land and if you do have a stick-built home, the terms of the lease must be for a minimum of 99 years or extend 50 years beyond the youngest borrower's 100th birthday.
  The terms of the lease must meet HUD's required guidelines and you must be able to qualify with the $1200 monthly rent included in your obligations when determining the financial assessment. Finally, the appraiser will be required to find similar homes which have sold recently to use to compare and determine a value.
  For all of the above reasons, the technical answer is yes, you may still qualify for the program but the practical answer is that I would recommend you have the property and lease reviewed before you spend money on appraisals, etc. to make sure it meets the requirements and then you still won't know for sure if the recent sales are available for the appraiser but at least you will not pay for an appraisal if it turns out the property/lease do not meet HUD requirements.
  Reply to Michael
Sharon B.
May 18th, 2020

Do you do reverse mortgages on manufacture homes that are 750SF?
Reply to Sharon
- Michael Branson
  May 18th, 2020
  
  Hi Sharon,
  
  HUD has a number of requirements for manufactured homes that the property must meet and you can find those requirements here. But specifically answering your question, yes, if the home also meets the other HUD requirements as well, a manufactured home of 750 square feet would be acceptable for a reverse mortgage.
  Reply to Michael
Teresa C.
February 20th, 2020

My parents live in a mobile home park. Half of the homes are manufactured as is theirs. Would they qualify? They also own a share of the park.
Reply to Teresa
- Michael Branson
  February 21st, 2020
  
  Hello Teresa,
  
  HUD will allow manufactured homes when the borrower owns the land and with other provisions but not when the home is located in a coop or condominium type ownership. We would not be able to close a reverse mortgage under these circumstances.
  Reply to Michael
John
January 16th, 2020

Can you get a reverse mortgage on a manufactured home that is on a fixed/cement foundation on a rural acreage? I have been told by a few lenders that they would not give a home equity line on such property but would give a first mortgage. Not sure why there are such restrictions, but curious about any such concerns with reverse mortgages? BTW, just looking into reverse mortgages as a long-term retirement planning component. Regards, John
Reply to John
- Michael Branson
  January 16th, 2020
  
  Hello John,
  
  HUD has very particular guidelines for manufactured housing and the reason is to be certain of the property's marketability should they become the owner of the home at the end of the term.
  Typically, any homes that HUD looks at to insure the loans must be readily marketable and that means that there must be recent sales of similar properties for the appraiser to use when determining the value. If there are adequate recent sales of other manufactured homes and the home meets HUD's other requirements, then you can get a reverse mortgage on the property.
  If, however there are no recent, nearby sales, there is no way to determine the marketability or the amount a buyer is willing to pay for such a property and therefore, HUD will not insure the loan. If your manufactured home is not near other manufactured homes with recent sales, the appraiser cannot appraise it in accordance with HUD guidelines and the lender will not be able to do an FHA loan which includes the reverse mortgage.
  Reply to Michael
Rochelle
November 11th, 2019

I'm 54 years old would my husband [who is 72] and I be eligible?
Reply to Rochelle
- Michael Branson
  November 13th, 2019
  
  Hello Rochelle,
  
  If your husband is over 62 and you are under 62, you would not be an eligible borrower but would be an eligible non-borrowing spouse.
  This means that if anything happens to your husband, you would still be able to live in the home for the rest of your life as long as you still meet all the reverse mortgage requirements (you live in the home, you pay your taxes and insurance in a timely manner and you maintain the home in a reasonable manner) but you would not be on the loan so if there was still money on the line of credit available when your husband passed, you would not have access to the funds.
  Since only he is on the loan, only he can request money from the line of credit. For this reason, you would want to be sure that the loan meets your requirements before you agree to close one, but it can be done.
  Reply to Michael
John M.
October 6th, 2019

I have been trying to get a reverse mortgage on my 1979 manufactured home on land. I gave up on the loan because the appraiser said that I needed to have the foundation strapped with hurricane straps. My house is on a foundation. I see on your site that I will need to get an engineer's certification for the foundation. Is strapping the foundation necessary? If my house was to be hit by a tornado what difference will it make if the floor is left attached to the ground?
Reply to John
- Michael Branson
  October 12th, 2019
  
  Hello John,
  
  To reiterate for anyone else reading, you are referring to the manufactured home requirements. HUD sets the requirements for the foundations and they do require the permanent attachment to the foundation.
  I have never had an in-depth discussion with anyone at HUD regarding why they determine one risk to be acceptable or why they draw the line at one point and not another, perhaps they realize that any home, manufactured or not can be destroyed if hit directly by a tornado but do not want to risk excessive damage with just a strong wind in close proximity?
  I honestly cannot say but the method of attachment to the permanent foundation is HUD's requirement and lender's do not have any discretion in this area if they expect to obtain the required insurance.
  Reply to Michael
Kenneth A.
September 12th, 2019

We have 3 acres of land with 1 double wide trailer per acre. My grandmother took a reverse home mortgage on her home out and all 3 acres but she put a different address from her actual one and she put one of the other homes. Her house is vacant but they keep sending notices to vacant to the other house. What are our options in this situation?
Reply to Kenneth
- Michael Branson
  September 12th, 2019
  
  Hello Kenneth,
  
  The loan encumbers a property delineated by the legal description which presumably encompasses all the land. If there is a separate mailing address for different structures on the property, it would seem to me that you can resolve that with the post office on the mail delivery or just by contacting the reverse mortgage servicer to update all the records.
  Reply to Michael
  - Nancy
    September 30th, 2019
    
    How do you get a FHA loan on a manufactured home where you lease the land it's the only loan. I can qualify for
    Reply to Nancy
    - Michael Branson
      September 30th, 2019
      
      Hello Nancy,
      
      Unfortunately, not every property will qualify for HUD/FHA insurance and you just identified one that most of the time does not. Let me explain. In order to insure a loan on a manufactured home, there are a list of requirements that the home must meet.
      HUD also has provisions for insuring a reverse mortgage for manufactured housing with additional specific requirements in the case of manufactured homes on leased land. For instance, HUD requires all manufactured homes to meet a number of requirements which you can find here, but when they reside on leased land, there are additional requirements that, unfortunately for those borrowers, are often not met (and judging by your question, probably are not in your case as well).
      The lease must extend for not less than 99 years and be renewable or the property must be under a lease that has no less than 50 years remaining term beyond the 100th birthday of the youngest spouse.
      In addition, the appraiser must be able to provide recent sales of similar properties for the appraisal that are also manufactured homes on leased land to show that the property is readily marketable -that informed buyers in the area will readily purchase manufactured homes under those circumstances and that the element of leased land does not create a stigma that inhibits the marketability of the property.
      Even if the terms of the lease are acceptable, we seldom find the recent sales of other similar leased manufactured homes required by HUD to support the marketability and value of the property in question. Without such data, the appraiser has no way to support a value and HUD has no way to determine the true risk associated with insuring a loan on the property.
      
      As I stated, not every property will qualify for HUD insurance. If you know that there are many properties that are similar to yours (manufactured homes on leased land) that have sold recently that an appraiser can use to support a value on the appraisal (and your home meets all other HUD requirements), you can talk to a local lender who may be more familiar with the area and properties but I would strongly suggest that you fully discuss the property and sales before you incur any costs.
      Reply to Michael
Rhonda
September 8th, 2019

If we own a home and we also have a mobile home that is not real property can we get a loan on the house and acreage alone? No permanent foundation for mobile home, easy to move, belongs to my son but in our name. Thank you!
Reply to Rhonda
- Michael Branson
  September 8th, 2019
  
  If your home meets HUD guidelines and the mobile home is not real property, is not in violation of the zoning ordinance and is not permanently affixed to the property, it would be considered like any other personal property that could be removed and would not be included in the value and would most likely be acceptable for the reverse mortgage program.
  It would depend on what the appraiser said about whether the mobile home was like a trailer or motorhome parked on the property that could be easily removed or an issue that would be a cost to cure. If the mobile home is on a permanent foundation, or if it is such that it violates zoning ordinances, it would not meet HUD requirements.
  Reply to Michael
Sylvia sylvester
July 9th, 2019

I have a 1997 manufactured home that in 2014 was moved from the front of the large lot to the back in order to put a new foundation and update the septic system. At that time, it was completely remodeled with cedar siding, new roof, new interior, new everything.
Will it qualify for a reverse mortgage?
Reply to Sylvia
- Michael Branson
  July 10th, 2019
  
  Hello Sylvia,
  To be eligible, the manufactured home must be on the original site or location as delivered and installed from the manufacturer. If the home was moved and the appraiser noted in the appraisal that the home had been moved, the home would not be eligible. Unfortunately, the remodel and updating would have no bearing on this requirement.
  Reply to Michael
Leo
June 23rd, 2019

I already have a reverse mortgage on my manufactured home. I've taken 25,000 out on it so far. I would like to pay off reverse mortgage loan and then refinance my home with conventional loan. Is this possible and do you do that?
Reply to Leo
- Michael Branson
  June 25th, 2019
  
  Hello Leo,
  
  You can refinance your reverse mortgage or pay it off with any funds available to you at any time with no prepayment penalty. We do no loans other than reverse mortgages but I am sure you could find a forward lender who could provide this financing for you with a quick internet search.
  Reply to Michael
Chris B.
June 10th, 2019

It looks like the rules have been updated some. Is it still necessary to own the land under the home? If so, is there any way to get a loan that is NOT FHA approved where you wouldn't need to own the land? My home, which I own outright, is worth quite a bit -- in a beach community and walking distance from the ocean -- but I really need some more income to stay here. My credit, if it matters, is excellent.
Reply to Chris
- Michael Branson
  June 10th, 2019
  
  Hello Chris,
  
  I don't have the context for your question, but I can only assume you are referring to a manufactured home that is on land you do not own? In that case, it is not real property and not eligible for the HUD insurance.
  Among other requirements, the manufactured home must be on a permanent foundation and on land you own so that it is considered real property (it is also taxed as such) and not personal property that you could move. I am sorry, I am not aware of a reverse mortgage program for non-FHA manufactured homes currently.
  Reply to Michael
Bonnie
June 3rd, 2019

We don't have very good credit, but we do own our home free and clear. We are both retired and want to buy a truck and trailer and travel a little bit. We also own a manufactured home and foundation and a shop on our property. Could we still get a reverse mortgage?
Reply to Bonnie
- Michael Branson
  June 3rd, 2019
  
  Hi Bonnie,
  
  I am afraid your comments are a little too vague for me to give you any kind of a definitive answer. I can tell you borrowers don't need perfect credit to qualify, but when you say, "we don't have very good credit", I have no way to know if your idea of not very good is the same as HUD's idea of not qualifying.
  If you have been paying all the property charges (taxes and insurance on your home) in the past 24 months on time, and your credit is a little spotty but not too bad or if you have good explanations and can verify extenuating circumstances for the credit issues, you may be fine there.
  
  The manufactured home would have to meet all of HUD's requirements as well as there needs to be adequate recent sales of similar properties. The most problems we run into with manufactured homes is that they do not meet HUD requirements, are not common in the area or there are no recent sales for the appraiser to use to determine a value.
  The best thing to do would be to first check your circumstances at our calculator to see what you might be able to expect from your property based on your ages and value. Then if you think that would work for your purposes, you can speak with a Loan Officer to discuss your individual circumstances and it would probably take a credit report to see if a LESA (Life Expectancy Set Aside) would be required due to credit concerns (if the concerns are not enough to cause disqualification).
  This would be the best way to decide if it would be worthwhile to proceed before going to the expense of ordering an appraisal. We hate to spend people's money unnecessarily and if we know there are issues from the start, why not address them up-front?
  Reply to Michael
Helene G
April 27th, 2019

I am interested in purchasing a manufactured home in a 55+ community of all manufactured homes. At some point in the future, I might need to apply for a reverse mortgage. Will I be able to qualify for one? Thank you.
Reply to Helene
- Michael Branson
  April 28th, 2019
  
  Good Afternoon Helene,
  
  I am a little concerned telling people yes or no when they are speaking about future events. You could certainly check to be sure that the community that you were considering met all HUD's requirements at this time and you could make sure that the home you were considering met all of the manufactured home requirements, but there is no guarantee of future events.
  HUD could change their guidelines for manufactured homes, there could be appraisal issues at the time you wished to use the program, or any other number of things could arise that could change things. Even people who bought in HUD approved condo projects found that the approvals expired and later that the project was no longer even eligible for approval so there is absolutely no guarantee of a future approval.
  
  The best you would be able to do would be to either take your chances after verifying that the project and home meets all HUD requirements at the time you buy it or it you know you will want the loan at some time, you could go ahead and get the line of credit at that time and do not take an initial draw on the line.
  The interest that would accrue on just the starting costs would be minimal, the line of credit would grow on the unused portion of the line giving you more borrowing power later and you could lock in your loan assuring you that there would be no future changes that could deny your ability to get the loan.
  That's the only way I know you would be able to ensure that the property would have a reverse mortgage available later, but it also means that if you never end up needing it, you paid for a loan you didn't need.
  Reply to Michael
Rhonda S.
March 26th, 2019

My son lives in a mobile home on our land. We need to exclude this in our loan can that be possible? No part of the land is his.
Reply to Rhonda
- Michael Branson
  March 26th, 2019
  
  Hello Rhonda,
  
  You have another problem that is even larger than worrying about the mobile being included in the mortgage. HUD will not allow you to have a mobile home on the parcel being financed with a reverse mortgage unless it is a manufactured home that is the home being financed and meets their requirements. In this case, if you have a secondary structure on the property that is a temporary mobile home, the only way you would qualify for a reverse mortgage would be to remove that home in order to obtain the reverse mortgage.
  
  You could have the mobile removed and take out the reverse mortgage or depending on the size of your lot, you may be able to divide the lot so that the land your son's mobile sits on is a separate parcel completely. In that manner, you would still own the land on which it sits and it would not be encumbered by the reverse mortgage.
  Before you consider subdividing your parcel though, you need to consider the effect this will have on your value. In some cases, it doesn't even affect the value as the remaining parcel size is still comparable to other sales in the area and the land cut off of the original parcel has no effect on the value of the remaining land/property and improvements.
  In some cases, though, the lesser lot would make the total size inferior to anything in the area or could cause the appraiser to compare the home to a completely different set of sales or could hurt the functionality of the lot. Before you consider changing the size/dimensions of your lot, you want to be sure that it will not adversely affect your value.
  I would strongly suggest you talk to local real estate professionals to determine what the ramifications of any changes would be before doing anything that would lower your overall value.
  Reply to Michael
Robert Warren
September 19th, 2018

How much money up front do we pay for inspections?
Reply to Robert
- Michael Branson
  September 20th, 2018
  
  Hello Robert,
  This can depend on where you live and the property itself. The appraisal will start at about $500 and can go up if the property is not similar to other properties in the area (is very unique). Your lender will be able to order the appraisal and let you know the exact cost from the appraiser who accepts the assignment before the appraisal is done though giving you the opportunity to approve or deny the charge.
  The manufactured home will require an engineer's report on the foundation and we have seen a wide range on the closing costs of those again, depending on whether or not there are many service providers in the area or whether or not the inspector has to travel a distance to do the inspection. I usually tell folks it is best to look online for your area and just do a search for something as simple as "HUD foundation inspections" Or "Manufactured home inspector" and they will usually pop up for your area. You can find out what their costs are directly because they are not affiliated with your lender and their fees will vary.
  Any other inspections would depend on other special circumstances. If the home was on a septic system, it might require an inspection. There could be some damage noted by the appraiser that would necessitate additional inspections or re-inspection for completion of repair but these are the exceptions and not the norm.
  I'm sorry I cannot give you exact numbers for the foundation and any other possibilities but I would simply be guessing. I would suggest you take a few minutes and call around your area to see with foundation inspections for HUD on manufactured homes costs and you can really narrow that down. You can choose your own inspector so you have a chance to shop for the service and choose a provider who gives you a good price.
  Reply to Michael
Colleen G.
September 10th, 2018

I will be purchasing a new manufactured home that will be placed on a permanent foundation and on a 5 acre parcel that is zoned rural. I have no balance owing on the land. How is the lands equity applied to the reverse mortgage?
Reply to Colleen
- Michael Branson
  September 10th, 2018
  
  Hello Colleen,
  
  This may seem like a simple question, but there are some huge disclaimers that go along with this answer. Firstly let me answer the actual question. To be able to do a loan on a manufactured home, the unit must be on the permanent foundation, it must have the HUD tags and the foundation would require an inspection from a licensed engineer and the improvements must be taxed as real property (any DMV tags must be removed). The appraisal would then include the value of the property and the improvements as compared to other similar homes sold.
  
  Now comes the disclaimers. Not all manufactured homes will be eligible for a reverse mortgage loan. HUD has some very specific guidelines that the home will have to meet and the ones that we usually run into issues with, especially in rural areas deal with the appraisal. The appraiser will have to find similar homes that have sold recently in order to compare to determine a value. If there are not very many manufactured homes close by that have sold, then the appraiser will not be able to find the sales comparables required to determine the marketability and value of the home. Manufactured homes are considered a somewhat unique property type that does not appeal to all borrowers in the same way.
  If there are not adequate recent sales to indicate the acceptability of the homes in your area, HUD has no way to gauge whether or not the property is readily marketable. This requirement is not exclusive to manufactured homes, HUD requires appraisers to compare homes with similar properties in all instances. The issue we find that tends to cause a problem though is that in rural areas many appraisers have a very difficult time finding at least 3 recent sales of manufactured home properties. You may want to check your area to see what the sales are like as it could very well determine your ability to obtain the mortgage if that is important to you.
  Reply to Michael
Jeanne
April 6th, 2018

How do find if a mobile home on a lot that I own meets all the HUD requirements?
Reply to Jeanne
- Michael Branson
  April 6th, 2018
  
  Hi Jeanne,
  
  HUD will not insure a loan on a true "mobile home". They will accept manufactured homes under limited circumstances once the home has become real property. To become real property, it must no longer have a license issued by the DMV and the tongue and axels must have been removed. There must be permanent utilities. It must be permanently affixed to the land (be on a permanent foundation) that you own and the method of attachment must meet HUD requirements (an engineer's report is required). The unit itself must be 400 square feet or larger and the home must have all HUD tags on the outside of the home. The home must have been manufactured after June 15th, 1976 and generally must be resting on its original location (outside of the factory). The manufactured home may not be located in a flood zone.
  
  In addition to the structure needing to meet the HUD requirements, HUD also requires that the appraiser can demonstrate that the manufactured home is marketable. In order to do so, the appraiser must be able to locate and use reasonable sales of other similar properties that have sold recently to support the value and marketability. In other words, if the appraiser is unable to find other manufactured homes in the area that are similar and have sold recently, the loan would not be able to close. It's in this requirement that borrowers often find difficulties if they are located in an area where there are not many manufactured homes or not many have sold.
  
  We often look up sales in advance for borrowers to see if there is ample manufactured home activity because the last thing you want to do is pay for the appraisal and engineer's report only to find that there are no recent sales of similar type properties available. Unfortunately though, the only way to know if the sales are truly comparable and can be used for an appraisal is to order the appraisal so checking to see if there are sales in advance is still not 100%, even if you do see some sales data. But at least if you know that the sales do or do not exist in advance, and you know if your home meets the general guidelines above, you will have a better idea as to whether or not a reverse mortgage will work for you.
  Reply to Michael
Judith Schwab
August 9th, 2017

How long should a reverse mortgage on a manufactured home take when all the criteria is met. We've been at it for almost 6 months with another company and are totally frustrated, but afraid to pull out of process thinking no one else can help us. Thanks JS
Reply to Judith
- Michael Branson
  August 10th, 2017
  
  Hi Judith,
  
  6 months clearly tells me that there is something wrong. When you say that "all the criteria is met", are you saying that the loan processing is complete, any repairs/completions to the property are done and the final underwriting approval has been given or what? A manufactured home has special considerations under the HUD rules but those are known from the start and usually pertain to the appraisal and the property itself. If those requirements are met, the loan takes no longer than any other reverse mortgage and so before I could give you any kind of an honest answer, I would need to know when the last requirement was met. If all the requirements including the manufactured home foundation inspection were all completed 6 months ago, something is definitely wrong. If it took 6 months to obtain everything including the foundation inspection and now that has just been submitted for final review, you should be very close to completion (assuming the appraisal was not done 6 months ago and now is expired - but that's a whole new issue).
  
  The bottom line is that a manufactured home does have a little more documentation to put together, it does have an inspection of the foundation that depending on where you live and how long it takes to have an engineer inspect can take some additional time and does have more requirements of the appraiser/appraisal. But 6 months is too long unless you are aware of specific issues with which your lender has been working but they should be able to give you a status to let you know where they are in the process.
  Reply to Michael
Thelma
June 16th, 2017

Our doublewide mobile home is a 1999 but it was previously owned. We purchased it in 2004 and it has been setting on the same lots since then. Is there anyway we could get a reverse mortgage? We are both on SS and as everyone knows it does not pay much.
Reply to Thelma
- Michael Branson
  June 16th, 2017
  
  Hi Thelma,
  One of the parameters we must follow is that the manufactured home must be on a permanent foundation and that it must be situated on the original location on which it was placed when it was first purchased from the factory. HUD will not insure a loan on a true "mobile home". If the home was bought new in 1999 and placed on one lot and then moved in 2004 to its current location, it would not meet most lender's requirements to lend on a manufactured home as it has been moved multiple times.
  Reply to Michael
debbie leasher
January 7th, 2017

can you get a reverse mortgage on a modular if it,s free and clear? mine is paid for but i,m on very limit ss ck and could use one
Reply to debbie
- Michael Branson
  January 9th, 2017
  
  Hi Debbie,
  HUD does allow Modular Homes that meet their program requirements. We have written all about the program parameters and you can find those requirements here.
  Reply to Michael

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