Manufactured home mortgages in New Hampshire

What counts as a manufactured home?

A manufactured home is built in a factory to the federal Manufactured Home Construction and Safety Standards, often called the HUD code, which took effect on June 15, 1976. Homes built before that date are usually called mobile homes, and most mortgage programs won't finance them. Modular homes are different: they're built to the same state and local codes as a site-built house and are generally financed like one.

Does it matter whether I own the land?

Yes, more than anything else. When the home sits on land you own (or are buying with it) and is treated as real estate, it can qualify for a regular mortgage, such as conventional, FHA, VA or USDA, subject to each program's rules. When the home sits on a rented lot in a park, it's usually financed with a chattel loan, which is secured by the home only, not the land. The CFPB has reported that chattel loans tend to cost more and have shorter terms and fewer protections than mortgages, so it's worth comparing both when you have the choice.

What are the HUD label and data plate?

Lenders confirm a home was built to the HUD code with two pieces of evidence. The HUD certification label is a small metal tag on the outside of each section of the home. The data plate is a paper sheet inside the home, often in a kitchen cabinet, a bedroom closet or near the electrical panel, listing the manufacturer, serial number and date. If either is missing, Fannie Mae's guide allows a label verification letter or a duplicate data plate from IBTS, the company that keeps HUD's records. Ordering one takes time, so check for both on your first visit.

What kind of foundation is needed?

For a mortgage, the home generally has to be attached to a permanent foundation, with the wheels, axles and towing hitch removed. FHA points to HUD's Permanent Foundations Guide for Manufactured Housing, and a foundation certification from a licensed engineer is often required. FHA also generally won't insure a home that was moved from another site after it was first installed. A home on blocks or piers that don't meet these standards may need foundation work before it can be financed.

How are manufactured homes deeded in New Hampshire?

New Hampshire treats a manufactured home that's placed on a site and connected to utilities as real estate for deeds, mortgages and liens, under RSA 477:44. It's transferred by deed recorded at the county registry, and the deed identifies the home by its manufacturer, model, year and serial number. If the home sits on land someone else owns, that landowner's consent is generally needed for the transfer. NH Housing asks lenders to make sure those home details match across the deed and loan documents, so a small mismatch can delay a closing.

What about homes in parks and resident-owned communities?

New Hampshire has many manufactured housing parks, and nearly 150 of them are resident-owned communities (ROCs), cooperatives where the residents own the land together, according to the New Hampshire Community Loan Fund. When a park owner gets an offer to sell, RSA 205-A:21 requires 60 days' notice to the residents and good-faith negotiation with them, which is how many co-ops formed.

In a park or co-op you usually own the home but not the land under it, so financing is typically a chattel loan, and the park or co-op has to approve you as a resident. Ask for the lot rent or co-op fees and the community rules early, because they're part of your monthly cost.

What should I check before making an offer?

• Is the land included in the sale, or is it a rented lot or co-op?
• Was the home built on or after June 15, 1976? Find the HUD label and the data plate.
• Is it on a permanent foundation, and has it stayed on this site since it was first installed?
• Does the deed list the home's serial number, and does it match the data plate?
• For a well and septic, plan the same tests as any NH home (see the well and septic guide).

Some of the lenders Elite works with finance manufactured homes, and the rules differ by program and by lender. Tom can look at the listing with you and tell you which loan options fit before your agent writes the offer.