source:
  type: guide
  id: usda-hb-3555-13.8
  authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶13.8 —
    Definition
  description: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶13.8
    — Definition.
  coverage_tier: operative
obligations:
- id: usda-hb-3555-13.8-full
  canonical_id: usda-hb-3555-13.8-full
  section: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶13.8 — Definition
  type: do
  tags:
  - regulator-direct
  - usda
  - usda-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶13.8
      — Definition
    source_class: usda-handbook
    source_url: https://www.rd.usda.gov/sites/default/files/hb-1-3555_consolidated.pdf
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-05-25T14:10:13Z'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '13.8 DEFINITION Manufactured homes are single-or multi-width
      units constructed partially off-site and transported to a site to be completed
      and anchored to a permanent foundation. Manufactured homes are structures built
      to the Federal Manufactured Home Construction and Safety Standards (FMHCSS)
      and evidenced by an affixed HUD Certification Label. They are not the same as
      a modular home. The primary distinction between manufactured homes and modular
      lies in the construction standards or code and the inspection processes they
      must adhere to. Unless otherwise specified in this section, the guidelines and
      procedures outlined in Chapters 6 and 12 for new construction should be followed.
      13.9 AUTHORIZED LOAN PURPOSES The following are eligible loan purposes for the
      financing of manufactured homes: HB-1-3555 (03-09-16) SPECIAL PN 13-9 Revised
      (10-12-23) PN 594 Guidance documents lack the force and effect of law, unless
      expressly authorized by statute or incorporated into a contract. USDA may not
      cite, use, or rely on any guidance that is not available through their guidance
      portal, except to establish historical facts. x Site development work that conforms
      to the standards imposed by the state and local government. x Purchase of an
      eligible new unit, transportation, and set-up costs. The following criteria
      outlines an eligible new manufactured unit for guarantee with the Single Family
      Housing Guaranteed Loan Program (SFHGLP): o Must be a new unit in stock that
      has never been installed or occupied at any other site or location. Manufactured
      units may be moved only from the manufacturers or dealer’s lot to the site on
      which the unit will be financed. o Must have a floor area of not less than 400
      square feet. o Must be placed on a permanent foundation built to FHA guidelines
      in effect at the time of certification. Guidelines are presently published in
      the “Permanent Foundation Guide for Manufactured Housing” (HUD- 4930.3G). o
      Meet or exceed the Federal Manufactured Home Construction and Safety Standard
      (FMHCSS) Uo Value Zone for the geographic area the unit will be placed. The
      Uo Value Zone will be indicated on the Comfort Heating and Cooling Certificate.
      Builder must certify thermal requirements at time of purchase have been met.
      o Must have a manufacture date that is within 12 months of the date of loan
      closing. The manufactured home must be affixed with a data plate located inside
      the home in which the date the unit was manufactured can be found. The certification
      label must be affixed in a location that will remain visible after all work
      is completed that is necessary to complete the installation of the home at the
      home site. x As an alternative to the original HUD Certification Label(s), the
      lender may obtain a verification letter with the same information contained
      on the HUD Certification Label(s) from the Institute for Building Technology
      and Safety (IBTS). A duplicate HUD Data Plate may be available from IBTS or
      by contacting the In-Plant Primary Inspection Agency (IPIA) of the manufacturer.
      A list of IPIA and DAPIA offices is posted on HUD’s website. o Construction
      and site requirements for new dwellings can be found in section 13.11. HB-1-3555
      (03-09-16) SPECIAL PN 13-10 Revised (10-12-23) PN 594 Guidance documents lack
      the force and effect of law, unless expressly authorized by statute or incorporated
      into a contract. USDA may not cite, use, or rely on any guidance that is not
      available through their guidance portal, except to establish historical facts.
      x Purchase of an eligible existing unit and site. The following criteria outlines
      an eligible unit manufactured unit for guarantee under the SFHGLP: o Must be
      an existing unit that has never been previously installed on a different homesite.
      o Must have a floor area of not less than 400 square feet. o Must have not had
      any alterations or modifications since construction in the factory, except for
      porches, decks, or other structures which were built to engineered designs or
      were approved and inspected by local code officials. o Must be installed on
      a permanent foundation in accordance with the manufacturer’s requirements and
      HUD installation standards. Guidelines are presently published in the “Permanent
      Foundation Guide for Manufactured Housing” (HUD-4930.3G). Certification of a
      proper foundation is required. o Must meet or exceed the Federal Manufactured
      Home Construction and Safety Standard (FMHCSS) Uo Value Zone for the geographic
      area. o Must have a manufacture date that is within 20 years from the date of
      loan closing and meets or exceeds the Federal Manufactured Home Construction
      and Safety Standard (FMHCSS) as evidenced by both an affixed HUD Certification
      label and HUD Data Plate. The manufacture date can be found on the data plate
      located inside the home. x As an alternative to the original HUD Certification
      Label(s), the lender may obtain a verification letter with the same information
      contained on the HUD Certification Label(s) from the Institute for Building
      Technology and Safety (IBTS). A duplicate HUD Data Plate may be available from
      IBTS or by contacting the In-Plant Primary Inspection Agency (IPIA) of the manufacturer.
      A list of IPIA and DAPIA offices is posted on HUD’s website. x Financing of
      an existing unit due to a transfer of an existing Section 502 Direct or Guarantee
      loan or purchase of a Real Estate Owned (REO) property. Repairs associated with
      these transactions may be included. 13.10 LOAN RESTRICTIONS The Agency will
      not guarantee loans to finance the following: HB-1-3555 (03-09-16) SPECIAL PN
      13-11 Revised (10-12-23) PN 594 Guidance documents lack the force and effect
      of law, unless expressly authorized by statute or incorporated into a contract.
      USDA may not cite, use, or rely on any guidance that is not available through
      their guidance portal, except to establish historical facts. x The purchase
      of a unit without an eligible site. x The purchase of an existing unit that
      was not constructed in conformance with the Federal Manufactured Home Construction
      and Safety Standards (FMHCSS) as evidenced by an affixed HUD Certification label
      and HUD Data Plate x The existing unit was not installed on a permanent foundation
      complying with manufacturer and HUD installation standards. x Furniture, including
      movable articles of personal property such as drapes, beds, bedding, chairs,
      sofas, divans, lamps, tables, televisions, radios, stereo sets, and other similar
      items of personal property. Furniture does not include wall-to-wall carpeting,
      refrigerators, ovens, ranges, washing machines, clothes dryers, heating or cooling
      equipment, or other similar equipment. x Additions and modifications on new
      or existing units are prohibited except for porches, decks, or other structures
      built to engineered designs and inspected and approved by a local building code
      official. x Purchase of a unit to be moved from a site other than the manufacturer/dealer
      lot to the site securing the mortgage loan. x Existing manufactured home units
      with a manufacture date exceeding 20 years from the date of loan closing unless
      the unit and site are already financed with a Section 502 loan. x A unit with
      a tow hitch or running gear remaining. 13.11 CONSTRUCTION AND SITE REQUIREMENTS
      FOR NEW DWELLINGS The borrower will contract with a licensed manufactured dealer.
      Manufactured homes must meet the site and other requirements for new dwellings
      in accordance with Chapter 12 of this Handbook. The lender’s permanent loan
      file must contain the following: x An itemized cost breakdown of the total package,
      including the base unit, eligible options, site development, installation, set-up,
      lot costs, and any credit for wheels and axles. x Dealer certification that
      any cash payment or rebate as a result of the purchase will be deducted from
      the price of the unit and not paid directly to the applicants. HB-1-3555 (03-09-16)
      SPECIAL PN 13-12 Revised (10-12-23) PN 594 Guidance documents lack the force
      and effect of law, unless expressly authorized by statute or incorporated into
      a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. x Dealer
      certification that proposed cost is the full price of the unit. If furniture
      is being purchased by the applicants with personal funds, a lien will not be
      filed against the security property. x Foundation plan designed to meet the
      HUD Handbook 4930.3G, Permanent Foundations Guide for Manufactured Housing (PFGMH),
      guidelines. x Plot and site development plans. x Inspections in accordance with
      Chapter 12 of this Handbook. x Contractor certification that multi-sectioned
      units were properly joined and sealed according to the manufacturer''s specifications
      and the home sustained no damage during transportation and set-up. 13.12 LOAN
      CLOSING FOR MANUFACTURED HOUSING Loan closing procedures are the same whether
      the guarantee is made for the purchase of a manufactured home or another type
      of single-family home. However, the lender should be aware of the following
      requirements. A. Warranty Requirement A dealer must provide the borrower with
      a copy of all manufacturer warranties. The warranty must identify the unit by
      serial number. A copy of all warranties and certifications will be retained
      in the lender’s permanent loan file. B. Lien Release Requirements The dealer
      must furnish a manufacturer''s certificate of origin indicating that the unit
      is free and clear of all legal encumbrances. A copy of the manufacturer’s statement
      or certificate of origin will be retained in the lender’s permanent loan file.
      C. Real Estate Tax Requirement As required by the local taxing authority, the
      unit and site must be classified, zoned, and taxed as real estate. Certificate
      of title to the manufactured home must be surrendered to the appropriate state
      government authority if state law permits. D. Title and Lien Requirements The
      mortgage must be insured by a standard real property title insurance policy.
      Refer to title insurance policy requirements outlined in Chapter 16 of this
      Handbook. HB-1-3555 (03-09-16) SPECIAL PN 13-13 Revised (10-12-23) PN 594 Guidance
      documents lack the force and effect of law, unless expressly authorized by statute
      or incorporated into a contract. USDA may not cite, use, or rely on any guidance
      that is not available through their guidance portal, except to establish historical
      facts. Additionally, both the unit and the site must be evidenced by a recorded
      mortgage or deed of trust. A combination of a chattel and real estate mortgage
      is not acceptable. If the certificate of title cannot be surrendered, the lender
      must indicate its lien on the certificate of title. SECTION 3: MODULAR HOMES
      Modular homes are sectional prefabricated houses that consist of multiple modules
      or sections which are typically manufactured in a remote facility and delivered
      to their site of intended use. They differ from manufactured homes largely in
      their absence of axles or frame. Modular dwellings are commonly transported
      to their site by means of flat-bed trucks and set in place with the assistance
      of a crane. Modular homes, whether “off frame” or “on frame”, are considered
      stick-built homes; therefore, the guidance outlined in Chapter 12 of this Handbook
      will be followed for new and existing modular homes. HB-1-3555 (03-09-16) SPECIAL
      PN 14-1 Revised (10-12-23) PN 594 Guidance documents lack the force and effect
      of law, unless expressly authorized by statute or incorporated into a contract.
      USDA may not cite, use, or rely on any guidance that is not available through
      their guidance portal, except to establish historical facts. CHAPTER 14: FUNDING
      [Official Agency Use Only]'
  judgment: false
