Do Fannie Mae and Freddie Mac buy loans on factory-built homes?

Yes, but the rules depend on the type of factory-built home. Fannie Mae treats modular, prefabricated, panelized, and sectional homes the same as site-built homes. It sets no special minimums for width, size, or roof pitch for those homes, but they must meet local building codes. HUD-code manufactured homes follow separate Fannie Mae requirements. Fannie's MH Advantage program, for manufactured homes with site-built-style features on land the buyer owns, advertises down payments as low as 3%. Freddie Mac notes that many lenders only finance real property and that titling rules vary by state. These companies don't lend directly. You apply through a lender that sells loans to them.

Sources

• B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built HousingFannie Mae
• MH Advantage MortgageFannie Mae
• What You Should Know About Titling a Manufactured HomeFreddie Mac