source:
  type: guide
  id: fnma-sel-b5-2-03
  authority: Fannie Mae Selling Guide B5-2-03 — Manufactured Housing Underwriting
    Requirements
  description: Fannie Mae Selling Guide B5-2-03 — Manufactured Housing Underwriting
    Requirements.
  coverage_tier: operative
obligations:
- id: fnma-sel-b5-2-03-full
  canonical_id: fnma-sel-b5-2-03-full
  section: Fannie Mae Selling Guide B5-2-03 — Manufactured Housing Underwriting Requirements
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B5-2-03 — Manufactured Housing Underwriting
      Requirements
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B5-2-03, Manufactured Housing Underwriting Requirements (10/08/2025)
      Introduction This topic contains information on manufactured housing underwriting
      considerations, including: Underwriting and DU Requirements Loan Amount Down
      Payment Requirements Trade Equity from the Borrower’s Existing Manufactured
      Home Traded Manufactured Homes Purchase Money Transactions Limited Cash-Out
      Reﬁnance Transactions Cash-Out Reﬁnance Transactions New Construction of a Manufactured
      Home Construction-to-Permanent Transactions Uniform Appraisal Dataset (UAD)
      3.6 Supplement Underwriting and DU Requirements Loans secured by manufactured
      homes (including MH Advantage properties) must be underwritten through DU. Published
      May 6, 2026 705 When entering the property information into DU, the lender must
      correctly identify the property type as a manufactured home or MH Advantage,
      and identify whether it is in a condo, co-op, or PUD project. Note: DU does
      not distinguish between single-width and multi-width. DU checks the subject
      property addresses against manufactured home property addresses in the DU property
      database. If DU’s database indicates the property may be a manufactured home,
      DU will return a message alerting the lender. DU’s issuance of this message
      does not necessarily mean the property is a manufactured home, nor does the
      absence of this message indicate that Fannie Mae accepts the accuracy of the
      property type as it was submitted Lenders must research the subject property
      type. If it is determined the property is a manufactured home, the lender must
      correct the property type and resubmit the loan caseﬁle to DU. If it is NOT
      a manufactured home, the loan may be delivered with the appraisal recommendation
      provided by DU. Note: DU will issue a message reminding the lender to ensure
      that the MH Advantage or single-width manufactured home requirements are met,
      in addition to all other manufactured housing requirements. Loan Amount The
      loan amount may include the following costs: cost of the manufactured home;
      cost of the land; the costs of construction, including bona ﬁde and documented
      transportation costs, costs for site preparation, which may include the cost
      to remove an existing manufactured home and other outbuildings, foundation,
      establishing utilities, all site improvements, and dwelling installation at
      the site. Any personal property items (non-realty items) purchased in conjunction
      with the manufactured home must be deducted from the sales price and cannot
      be ﬁnanced as part of the loan. Down Payment Requirements A minimum down payment
      of 5% must come from the borrower’s own funds unless: the LTV or CLTV ratio
      is less than or equal to 80%; the borrower is purchasing a one-unit principal
      residence and meets the requirements to use gifts, donated grant funds, or funds
      received from an employer to pay for some or all of the borrower''s minimum
      contribution. See B3-4.3-04, Personal Gifts; B3-4.3-06, Grants and Lender Contributions;
      and B3-4.3-08, Employer Assistance, for additional information; or the property
      meets the MH Advantage requirements and the loan meets the requirements for
      LTV ratios of 95.01-97%. In this case, the borrower must contribute a minimum
      down payment of 3%, from their Published May 6, 2026 706 own funds unless the
      loan meets the gift, grant, or funds from an employer policy referenced above.
      The borrower''s equity in the land is considered the borrower’s own funds. Where
      the borrower holds title to the land on which the manufactured home will be
      permanently attached, the value of the land may be credited toward the borrower’s
      minimum down payment (or equity requirement for a reﬁnance). The borrower’s
      equity contribution will be the diﬀerence between any outstanding liens against
      the land and the market value of the land. The following table describes how
      to determine the value of the land based on when and how the borrower acquired
      the land. Date of Land Purchase Value of the Land Documentation Requirements
      More than 12 months preceding the loan application. The current appraised value.
      None. 12 or fewer months preceding the date of the loan application. The lesser
      of the sales price or the current appraised value. The lender must document
      the borrower’s cash investment by obtaining: • a copy of the settlement statement,
      • a copy of the warranty deed that shows there are no outstanding liens against
      the property, or • a copy of the release of any prior liens(s). The borrower
      acquired the land at any time as a gift, inheritance, or other non-purchase
      transaction. The current appraised value. The lender must obtain appropriate
      documentation to verify the acquisition and transfer of ownership of the land.
      Trade Equity from the Borrower’s Existing Manufactured Home Trade equity from
      the borrower’s existing manufactured home may be used as part of the borrower’s
      minimum down payment requirement. The maximum equity contribution from the traded
      manufactured home is 90% of the retail value for the traded manufactured home
      based on the NADA Manufactured Housing Appraisal Guide except: If the borrower
      has owned the traded manufactured home for less than 12 months preceding the
      date of the loan application, the maximum equity contribution is the lesser
      of 90% of the retail value or the lowest price at which the home was sold during
      that 12 month period. Published May 6, 2026 707 Any costs associated with the
      removal of the traded home or any outstanding indebtedness secured by liens
      on the home must be deducted from the maximum equity contribution. Traded Manufactured
      Homes For traded manufactured homes, Fannie Mae requires a lien search in the
      appropriate real property and personal property records to verify ownership
      and to determine whether there are any existing liens on the manufactured home
      and land, or on the home and the land if they are encumbered by separate liens.
      The seller of the new manufactured home must provide proof of title transfer
      and satisfaction of any existing liens on the traded manufactured home. Purchase
      Money Transactions Purchase money transactions are those in which the mortgage
      proceeds are used to ﬁnance the purchase of the manufactured home or the manufactured
      home and the land. The land may be previously owned by the borrower, either
      free of any mortgage or subject to a mortgage that will be paid oﬀ with the
      proceeds of the new purchase money mortgage. Note: The borrower does not receive
      any cash back with a purchase money transaction. New Manufactured Homes The
      LTV ratio (and CLTV/HCLTV ratio, if applicable) for a loan secured by a newly
      built manufactured home that is being attached to a permanent foundation system
      in connection with a purchase transaction will be based on the lower of: the
      sales price of the manufactured home plus: the lowest sales price at which the
      land was sold during that 12 month period if the land was purchased in the 12
      months preceding the loan application date; or the current appraised value of
      the land if the land was purchased more than 12 months preceding the loan application
      date. the “as completed” appraised value of the manufactured home and land.
      Existing Manufactured Homes An existing manufactured home is one that already
      exists on its foundation. Manufactured Home Subdivision Development In cases
      where a manufactured home is being sold to a consumer by a builder, developer,
      or manufacturer acting as a developer as part of a new or existing manufactured
      home subdivision, the LTV ratio (and CLTV/HCLTV ratio, if applicable) for a
      loan secured by an existing manufactured home will be based on the lower of:
      the sales price of the manufactured home and land; or the current appraised
      value of the manufactured home and land. All Other Transactions Published May
      6, 2026 708 The LTV ratio (and CLTV/HCLTV ratio, if applicable) for a loan secured
      by an existing manufactured home will be based on the lowest of: the sales price
      of the manufactured home and land; the current appraised value of the manufactured
      home and land; or if the manufactured home was built in the 12 months preceding
      the loan application date, the lowest price at which the home was previously
      sold during that 12-month period, plus the lower of: the current appraised value
      of the land, or the lowest price at which the land was sold during that 12-month
      period (if there was such a sale). Note: The above purchase requirements do
      not apply to single-closing construction-to-permanent transactions. See B5-3.1-02,
      Conversion of Construction-to-Permanent Financing: Single-Closing Transactions
      for additional information. Limited Cash-Out Reﬁnance Transactions Limited cash-out
      reﬁnance transactions may involve the following scenarios: payoﬀ of an existing
      personal property lien on a new manufactured home (or an existing lien on the
      home and a mortgage on the land if encumbered by separate liens), or payoﬀ of
      a ﬁrst lien mortgage secured by an existing manufactured home and land (or existing
      mortgages for the home and land if encumbered by separate liens). The maximum
      LTV ratio (and CLTV ratio, if applicable) for a limited cash-out reﬁnance transaction
      for a loan secured by a manufactured home and land will be based on the lower
      of: the current appraised value of the manufactured home and land; or if the
      manufactured home was owned by the borrower for less than 12 months on the loan
      application date and: if the home and land are secured by separate liens, the
      lowest price at which the home was previously sold during that 12-month period
      plus the lower of the current appraised value of the land, or the lowest sales
      price at which the land was sold during that 12-month period (if there was such
      a sale); if the home and land are secured by a single lien, the lowest price
      at which the home and land were previously sold during that 12-month period.
      Proceeds of a limited cash-out reﬁnance mortgage may be used to: pay oﬀ the
      outstanding principal balance of an existing personal property lien or ﬁrst
      lien mortgage secured by the manufactured home and land (or existing liens if
      the home and land were encumbered by separate ﬁrst liens); pay oﬀ the outstanding
      principal balance of an existing subordinate mortgage or lien secured by the
      manufactured home and/or land, but only if it was used to purchase the manufactured
      home and/or land; ﬁnance costs of construction; ﬁnance closing costs (including
      prepaid expenses); and provide cash back to the borrower in an amount that does
      not exceed the greater of 1% of the balance of the new reﬁnance mortgage or
      $2,000. Published May 6, 2026 709 Cash-Out Reﬁnance Transactions A cash-out
      reﬁnance: involves the payoﬀ of an existing ﬁrst lien mortgage secured by the
      manufactured home and land (or existing liens if the home and land were encumbered
      by separate ﬁrst liens); or enables the property owner to obtain a mortgage
      on a property that does not already have a mortgage lien against it, and permits
      the borrower to take equity out of the property in the form of mortgage proceeds
      that may be used for any purpose. To be eligible for a cash-out reﬁnance, the
      property must be a multi-width manufactured home (single-width are not permitted).
      The borrower must have owned both the manufactured home and land for at least
      12 months preceding the date of the loan application. The LTV, CLTV, and HCLTV
      ratios will be based on the current appraised value of the manufactured home
      and land. New Construction of a Manufactured Home When the mortgage loan funds
      the construction of a new manufactured home, construction must be complete when
      the loan is purchased (or securitized) by Fannie Mae. As a reminder, if construction
      is completed after the ﬁrst payment date of the subject loan, the loan may be
      subject to the property value requirements (loans more than four months old
      at time of purchase) or seasoned loan requirements in B2-1.5-02, Loan Eligibility.
      Construction-to-Permanent Transactions The following construction-to-permanent
      transactions are permitted for the construction and permanent ﬁnancing of a
      manufactured home: single-closing transactions processed as a purchase or limited
      cash-out reﬁnance, and two-closing limited cash-out reﬁnances. (Two-closing
      cash-out reﬁnances are not permitted.) The loan must meet the requirements in
      Section B5-3.1, Conversion of Construction-to-Permanent Financing, and all other
      manufactured home requirements in this Guide. Uniform Appraisal Dataset (UAD)
      3.6 Supplement Lenders using UAD 3.6 must follow the requirements in the UAD
      3.6 Policy Supplement. Recent Related Announcements The table below provides
      references to recently issued Announcements that are related to this topic.
      Announcements Issue Date Announcement SEL-2025-08 October 08, 2025 Published
      May 6, 2026 710 Announcements Issue Date Announcement SEL-2022-06 July 06, 2022
      Announcement SEL-2020-07 December 16, 2020 Announcement SEL-2019-07 August 07,
      2019'
  judgment: false
