Why does it matter whether a home is HUD-code manufactured, modular, or something else when I apply for a loan?

Lenders and loan programs set their rules by building category, so the classification decides which programs can be considered. Federal rules define a manufactured home as one built on a permanent chassis and transportable in sections that are at least 8 body feet wide or 40 body feet long, or at least 320 square feet when set up. These homes carry a HUD label. Fannie Mae treats modular, panelized, and other factory-built homes that meet local building codes the same as site-built homes. In Texas, modular homes go through the state industrialized housing program and carry a state decal. A structure that fits neither category may not qualify for programs written for those categories. Ask a lender which category your home falls into before you apply.

Check your local rule. This varies by state, county or city. Your permitting office has the final word; the official lookup pages below show you who that is.

Sources

• 24 CFR Part 3280, Manufactured Home Construction and Safety StandardseCFR / U.S. Government
• B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built HousingFannie Mae
• Industrialized Housing and Buildings: Frequently Asked QuestionsTexas Department of Licensing and Regulation