Manufactured Housing Programs

What's a manufactured home?
Does HUD regulate the design and construction of modular homes?
What's the difference between a manufactured and a modular home?
What's usually required when buying a manufactured home with an FHA loan?
How can I file a complaint about my manufactured home?
Certification labels verifications
Permanent foundations

The Manufactured Housing Program is a national HUD program established to protect the health and safety of manufactured home (mobile home) owners. While FHA insures loans and mortgages for manufactured housing, HUD helps purchasers learn more about the FHA process including insured loans, label verification and permanent foundations.

HUD's Manufactured Housing Program:

• Regulates the design and construction of manufactured homes
  
  
• Oversees the enforcement of design and construction standards, working through private inspection agencies and State governments.

The intent of the program is:

• To reduce personal injuries, deaths, property damage, and insurance costs
  
  
• To improve the quality and durability of manufactured homes (if the home contains a defect which presents an unreasonable risk of injury or death, the manufacturer may be required to correct the defect).

This past year HUD carried on a number of major investigations, filed cases in Federal court for civil penalties and injunctive relief, and entered into several settlements with manufacturers; all on behalf of the consumer. These actions resulted in halting violations of manufactured housing regulations by manufacturers, overseeing manufacturer's consumer notification of home defects, and ensuring the correction of those defects.

FAQs for Manufactured Homes Qualifying for FHA-Insured Loans

What is a manufactured home? - (Top)

A manufactured home (also known as a mobile home) is built on a non-removable steel chassis or frame. Each transportable unit (a double-wide has two units; a triple-wide has three units) of a manufactured home has a red certification label on the exterior section and is built according to Manufactured Home Construction and Safety Standards (HUD Code). Manufactured homes can be placed on a permanent foundation.

Does HUD regulate the design and construction of modular homes? - (Top)

No. Each state housing agency administers its own building codes for modular housing; however, HUD does offer FHA-insurance on mortgages for modular homes.

What is the difference between a manufactured and a modular home? - (Top)

Modular homes must conform to relevant state, local, and regional building codes and might have a state certification label attached to the exterior of the home. Manufactured homes are built in accordance with the Manufactured Home Construction and Safety Standards (HUD Code) and must have a red certification label on the exterior of each transportable section.

What is most often required when buying a manufactured home with an FHA loan? - (Top)

There are two types of loans available to purchase a manufactured home through FHA.

A Title I loan for a manufactured home requires one of the following:

• A certification label attached to the home, or
• A label verification letter. Obtain a label verification letter by visiting the website of the HUD approved contractor, the Institute for Building Technology and Safety (IBTS) at http://www.ibts.org/label_req.htm, or at (703) 481-2010.


A Title II loan requires all of the following:

• A certification label or label verification letter.
• The placement of the home on a permanent foundation that complies with the Permanent Foundations Guide for Manufactured Housing (PFGMH).
• A certification from a licensed professional engineer verifying compliance with the PFGMH.

The most common permanent foundation errors delaying the approval of an FHA-insured loan for a manufactured home are:


1. The foundation footings aren't set below the frost line
   
   
2. Dry-stacked piers are used instead of required piers with mortared head and bed joints
   
   
3. The use of ground anchors - because FHA doesn't accept these as a permanent attachment
   
   
4. Any permanent foundation lacking an engineer's certification, even if it complies with all other elements
   
   
5. Vinyl skirting used as an enclosure that doesn't meet ALL of the following FHA requirements:
   
   
   1. Properly enclosed crawl space with a continuous permanent foundation-type construction (similar to a conventionally built foundation, i.e., concrete, masonry or treated wood)
      
      
   2. Designed to resist all forces without transmitting the building superstructure to movements or effects caused by frost heave, soil settlement, or the shrinking or swelling of expansive soils
      
      
   3. Adequately secured to the perimeter of the unit to exclude entry of vermin and water
      
      
   4. Allowance for proper ventilation of the crawl space
      
      

How can I file a complaint about my manufactured home? - (Top)

If you have a complaint about your manufactured home, you should first contact the retailer who sold the home to you. If the retailer can't help, your next contact should be the manufacturer.

You must put your complaint in writing. Be sure to keep a copy with your records. Your complaint should include the following information:

• Your name
• Your address
• Your telephone number
• The name of the manufacturer
• The serial number and label number of each section of the home
• The date the home was purchased
• The name and telephone number of the retailer who sold the home to you
• A description of the problem and a list of those already contacted to help solve the problem

If your complaint isn't resolved by contacting the retailer or manufacturer of your home, you may contact the agency in your state with the authority to respond to your complaint.

In cases where problems in a home create a safety risk, manufacturers must correct the problems in a short period of time. Where a safety risk isn't related to the construction of the home, HUD can't require a manufacturer to correct the problems. When a problem of a less serious nature may seem very important to you, the law doesn't obligate the manufacturer to make the correction.

For additional assistance, visit our Manufactured Housing webpage at www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm or email mhs@hud.gov or at (202) 708-6423.

Permanent Foundations - (Top)

To be eligible for FHA insurance, your manufactured (mobile) home must be on an FHA-approved permanent foundation.

A registered professional engineer must inspect and certify that the foundation complies with the Permanent Foundations Guide for Manufactured Housing.

The most common errors that may cause a delay are:

6. The foundation footings are not set below the frost line
   
   
7. The use of dry-stacked piers are used instead of the required piers with mortared head and bed joints
   
   
8. Ground anchors are used, because FHA does not accept these as a permanent attachment
   
   
9. Any permanent foundation lacking an engineer's certification, even if it complies with all other elements
   
   
10. Vinyl skirting used as an enclosure, that doesn't meet ALL of the following FHA requirements:
    
    
    1. Properly enclosed crawl space with a continuous permanent foundation-type construction (similar to a conventionally built foundation, i.e., concrete, masonry or treated wood)
       
       
    2. Designed to resist all forces without transmitting the building superstructure to movements or effects caused by frost heave, soil settlement, or the shrinking or swelling of expansive soils
       
       
    3. Adequately secured to the perimeter of the unit to exclude entry of vermin and water
       
       
    4. Allowance for proper ventilation of the crawl space

For additional assistance, visit the webpage www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm or email mhs@hud.gov or phone (202) 708-6423.

Certification Labels Verifications - (Top)

The Federal Housing Administration (FHA) and most mortgage companies require a manufactured home (mobile home) to have a visible certification label (tag) attached to each transportable unit of the home. Without that visible tag, a label verification letter is normally required before the loan can be approved. You can obtain a label verification letter by following the instructions on the Institute for Building Technology and Safety (IBTS) website at www.ibts.org/label_req.htm or by calling (703) 481-2010. IBITS is a HUD-approved contractor.

What does a certification label or HUD label look like?

I've sent a request to the IBTS. How long before I receive a response?

This process usually takes 3 - 5 business days and costs about $50. All questions regarding expediting label verification requests should be addressed to the IBTS at www.ibts.org/label_req.htm or at (703) 481-2010.

Do label (tag) numbers have to be in sequential order?

No. The certification labels (tags) may or may not be in sequential order. The certification labels are identified by a three-letter prefix followed by six numbers (i.e., RAD 000001).

For additional assistance, visit our Manufactured Housing webpage at www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm or email mhs@hud.gov or phone (202) 708-6423.