source:
  type: guide
  id: hud-4000-1-ii-c-property-requirements
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property
    Requirements (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property
    Requirements (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-c-property-requirements-full
  canonical_id: hud-4000-1-ii-c-property-requirements-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property
    Requirements (05/09/2022)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property
      Requirements (05/09/2022)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'c. Property Requirements (05/09/2022) i. Definitions (A) Manufactured
      Home A Manufactured Home refers to a transportable Structure, comprised of one
      or more modules, each built on a permanent chassis, with or without a permanent
      foundation, designed for occupancy as a Principal Residence by a single family.
      (B) New Manufactured Home A New Manufactured Home refers to a home, which has
      not been previously occupied, purchased by a Borrower within 18 months after
      the date of manufacture. (C) Existing Manufactured Home An Existing Manufactured
      Home refers to a home purchased later than 18 months after the date of manufacture;
      it must be appraised to determine the maximum loan amount. II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan
      Program Handbook 4000.1 1037 Last Revised: 11/26/2025 (D) Manufactured Home
      Lot Manufactured Home Lot refers to a portion of land owned or to be owned by
      the Borrower as realty, and is suitable for placement of a Manufactured Home.
      The manufactured home lot may consist of: • platted or unplatted land, a lot
      in a recorded or unrecorded subdivision or in an improved area of such subdivision,
      or a lot in a Planned Unit Development (PUD); or • an interest in a manufactured
      home Condominium Project (including any interest in the common areas) or a share
      in a cooperative association that owns and operates a manufactured home park.
      (E) Manufactured Home A Manufactured Home is constructed in compliance with
      the Manufactured Home Construction and Safety Standards Act of 1974 (42 U.S.C.
      §§ 5401–5426) at 24 CFR Part 3280, and is exclusive of the land on which the
      home is set. The Property may include the garage, patio, carport, or other comparable
      appurtenance. The Manufactured Home: • may be treated as Personal Property or
      Chattel when it retains its vehicle title (or certificate of title); or • may
      be treated as realty by the state or locality in which the Property is located,
      and for which the vehicle title is surrendered and canceled. When the Manufactured
      Home is treated as Personal Property, Lenders may take a security interest in
      the Manufactured Home as Personal Property and concurrently place a real property
      lien on the land. FHA permits Manufactured Homes to be split from the land and
      secured separately. (F) Manufactured Home and Lot Combination Manufactured Home
      and Lot Combination refers to an eligible Manufactured Home and manufactured
      home lot on which the Manufactured Home is placed. (G) Manufacturer’s Invoice
      Manufacturer’s Invoice refers to a document issued by a manufacturer and provided
      with a Manufactured Home to a retail dealer that separately details the wholesale
      (base) prices at the factory for specific models or series of Manufactured Homes
      and itemized options (large appliances, built-in items and equipment), plus
      actual itemized charges for freight from the factory to the Dealer’s lot or
      the home site (including any rental of wheels and axles) and for any sales taxes
      to be paid by the Dealer. The invoice may recite such prices and charges on
      an itemized basis or by stating an aggregate price or charge, as appropriate,
      for each category. The manufacturer shall certify on the invoice, or on a supplement
      which is attached to and made a part of the invoice, as follows: II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured
      Home Loan Program Handbook 4000.1 1038 Last Revised: 11/26/2025 The undersigned
      certifies under applicable criminal and civil penalties for fraud and misrepresentation
      that: (1) The wholesale (base) prices for the manufactured home and itemized
      options, the charges for freight and dealer-paid sales taxes, and all other
      statements in this invoice are true and accurate; (2) all such prices reflect
      the actual dealer costs at the factory, as quoted in the applicable current
      manufacturer’s wholesale (base) price list; (3) except for any payments of volume
      incentives or special benefits related to this transaction, all such prices
      and charges exclude any costs of trade association fees or charges, discounts,
      bonuses, refunds, rebates, prizes, loan discount points or other financing charges,
      or anything else of more than nominal value which will inure to the benefit
      of the dealer and/or home purchaser at any date; and (4) the manufacturer has
      not made and will not make any payments to or for the benefit of the dealer
      and/or home purchaser that are not disclosed on this invoice or invoice supplement.
      ii. Standard (A) HUD Certification Label (1) Definition HUD Certification Label,
      also known as a HUD seal or HUD tag, refers to a two inch by four inch aluminum
      plate permanently attached to Manufactured Housing. (2) Standard The HUD tag
      should be located at one end of each section of the house, approximately one
      foot up from the floor and one foot in from the road side, or as near that location
      on a permanent part of the exterior of the house as practicable. The Manufactured
      Home must comply with standards for livability and durability as specified in
      HUD Code, formally known as the National Manufactured Housing Construction and
      Safety Standards Act of 1974 (42 U.S.C. §§ 5401– 5426) at 24 CFR Part 3280.
      All Manufactured Homes built since June 15, 1976 must comply with these standards.
      The manufacturer must certify that a Manufactured Home is constructed in compliance
      with HUD Code by affixing a red HUD Certification Label to the home. Etched
      on the certification label is the certification label number, also referred
      to as the HUD label number. Label numbers are not required to be sequential
      on a multi-section house. When the HUD seal is missing or not found, Lenders
      must obtain label verification from the Institute for Building Technology and
      Safety (IBTS). A manufactured home appraisal must reflect the serial number
      from the HUD Seal. A manufactured home appraisal is required for: II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured
      Home Loan Program Handbook 4000.1 1039 Last Revised: 11/26/2025 • a purchase
      of an Existing Manufactured Home (older than 18 months from date of manufacture);
      • a non-streamline refinance of a Manufactured Home Loan; or • each Loan for
      which the Lender files a claim. (B) Data Plate Manufactured Homes have a Data
      Plate affixed in a permanent manner, typically adjacent to the electric service
      panel, the utility room or within a cabinet in the kitchen. The Data Plate provides
      information, such as the manufacturer name, serial number, model and date of
      manufacture, as well as wind, roof load and thermal zone maps. If the Data Plate
      is missing or the Appraiser is unable to locate it, the Lender is not required
      to obtain the Data Plate information from another source. The Lender, or an
      agent of the Lender that is not a Dealer, must conduct an inspection of the
      Manufactured Home after it has been delivered and installed at the home site.
      iii. Required Documentation (A) Invoice or Appraisal The case binder must contain
      the invoice showing the date of manufacture, or the home appraisal showing the
      age of the home. (B) Certification of Compliance with HUD Code For New Manufactured
      Homes, a certification that the home was constructed in compliance with HUD
      Code must be reflected by a certification on the Manufacturer’s Invoice or invoice
      supplement, which is signed by the manufacturer’s authorized representative.
      (C) Manufacturer’s Warranty On New Manufactured Home purchases, the home manufacturer
      must furnish the Borrower with a one year written warranty. The warranty must
      be provided at no cost to the Borrower. An authorized representative of the
      manufacturer must execute the warranty on form HUD-55014, Warranty for New Manufactured
      Home. The warranty must be effective as of the actual date that the Borrower
      takes possession of the home. A copy of the warranty must be contained in the
      Borrower’s case binder. iv. Options and Accessories Transactions for New and
      Existing Manufactured Homes may include eligible options and accessories, provided
      that these options are itemized on the Manufacturer’s Invoice, II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured
      Home Loan Program Handbook 4000.1 1040 Last Revised: 11/26/2025 sales contract,
      and/or a separate bill of sale. Only the actual cost of such items may be considered
      when calculating the maximum loan amount. (A) Eligible Options and Accessories
      The following items may be considered when calculating the maximum loan amount,
      not to exceed actual costs: • skirting; • garage, carport, patio or other comparable
      appurtenance to the home; and • purchase and installation of a central air conditioning
      system or heat pump (if not already installed by the manufacturer). (B) Ineligible
      Options and Accessories The following items may not be considered when calculating
      the maximum loan amount: • furniture and other articles of Personal Property
      (lamps, rugs, draperies, etc.); • small appliances that are not part of the
      Property (toasters, TVs, etc.); and • purchase of wheels and axles. Furniture
      refers to movable articles of Personal Property relating to a home or dwelling,
      such as beds, chairs, sofas, lamps, tables, rugs, etc.; however, furniture does
      not include: • items built into the home or dwelling such as wall-to-wall carpeting
      or heating or cooling equipment; or • large appliances such as refrigerators,
      ovens, ranges, dishwashers, clothes washers or clothes dryers. v. Manufactured
      Home Site Eligibility (A) Standard The site must comply with standards, ordinances,
      and regulations, if any, issued by state or local government and must: • be
      served by adequate utility connections; • provide Adequate Vehicular Access
      from a public right-of-way; • have an adequate water supply and adequate sewerage
      disposal system. The site must use public or Community Water Systems and sewerage
      systems, unless such systems are unavailable to provide an adequate level of
      service to the manufactured home site; • comply with local or state minimum
      lot area requirements for water or sewage systems, if the site is served by
      such systems; and • meet the water quality standards set by the U.S. Environmental
      Protection Agency (EPA), as presented in the National Primary Drinking Water
      regulations in 40 CFR Parts 141–142, if there are no local or state water quality
      standards. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured
      Programs 4. Manufactured Home Loan Program Handbook 4000.1 1041 Last Revised:
      11/26/2025 (B) Required Documentation The Lender must document that the home
      site complies with the standards outlined above and provides a suitable site
      for a Manufactured Home. The Lender must obtain one of the following: • a certification
      signed by a local government representative or registered civil engineer certifying
      that the private site meets the above site standards; • a certification signed
      by a local government representative or a jurisdiction of licensing authority
      responsible for approval of manufactured housing community development; • a
      building permit for the site from the local government and a water and sewer
      permit from the water authority; or • a Certificate of Occupancy (CO) for the
      site signed by a local government representative. A site inspector who is a
      registered civil engineer may be an employee of the Lender, but may not be employed
      by the seller or have a financial interest in the subject transaction. The written
      certification must be retained in the case binder. vi. Site Lease (A) Standard
      For a leased site in a community of three or more Manufactured Homes on adjacent
      lots which are all owned by the same entity, the Lender must verify that the
      lease includes the following provisions: • the lease term must be for a term
      of three years or longer; • the lease term must be renewable upon the expiration
      of the original term by successive terms of one year or more; and • the lease
      must require the lessor to provide the lessee written notice of termination
      of the lease not less than 180 Days prior to the expiration of the current lease
      term in the event the lessee is required to move due to the closing of the manufactured
      home community. The lease must further provide that the lessor’s failure to
      give such notice to the lessee in a timely manner will cause the lease term,
      at its expiration, to automatically renew for an additional one-year term. All
      leases must: • state the property address, term of the lease, amount of monthly
      rent and be signed by the land owner and the Borrower; and • disclose any potential
      increase to lot rent as needed or required by the park owner. A lease may require
      Borrower-lessees to comply with park rules and regulations and be subject to
      termination for violations. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1042 Last Revised: 11/26/2025 (B) Required Documentation The lender file must
      contain a copy of the land lease that reflects provisions listed in the standard
      above for lease term, renewals, and minimum advance notice to the Borrower for
      lease termination. vii. Native American Reservations and Other Restricted Lands
      (A) Standard A Manufactured Home may be placed on an owned or leased site within
      Native American trust or otherwise restricted lands. (B) Required Documentation
      The trustee or the tribal authority that controls the use of the site provides
      written permission for the Borrower to install a Manufactured Home on the site
      and written permission for the Lender to repossess the home in the event of
      Default by the Borrower and acceleration of the Loan. viii. Manufactured Home
      Installation Requirements (A) Standard (1) New Manufactured Home or Relocated
      Existing Manufactured Home The installation or erection of a Manufactured Home
      on the home site must meet or exceed the requirements set forth in: • 24 CFR
      Part 3285, Model Manufactured Home Installation Standards; • 24 CFR Part 3286,
      Manufactured Home Installation Program; and • any state or local requirements
      governing the installation and construction of the manufactured home foundation
      system that exceed the Model Manufactured Home Installation Standards. Installation
      of a relocated existing home must be performed by a licensed installer. (2)
      Existing Manufactured Home – Not Relocated An Existing Manufactured Home that
      has not been relocated from the home site upon which it was originally erected
      must have been installed in compliance with the manufacturer’s requirements
      for anchoring, support, stability, and maintenance. II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan
      Program Handbook 4000.1 1043 Last Revised: 11/26/2025 (B) Required Documentation
      For all Manufactured Home Loans, the Lender must obtain an executed form HUD-56002-MH.
      Each Borrower must sign the section entitled Notice to Borrowers. The Dealer
      and/or retailer must sign the Notice to Dealers whenever the home is purchased
      through a Dealer/retailer. Form HUD-56002-MH must be retained in the case binder.
      ix. Appraisals When an appraisal is required, the Lender must engage a Chattel
      Appraiser who is not engaged in the business of manufactured home retail sales.
      (A) Appraisal Requirement for Manufactured Home Lot The Lender must obtain an
      appraisal for the financing of a manufactured home lot by itself, or in combination
      with a manufactured home chattel unit. Exception An appraisal is not required
      for lots that are leased, and not secured by a lien. (B) Appraisal Requirements
      for Manufactured Home Appraisals are required on the secured Property, for the
      following transactions or events: • purchase of an Existing Manufactured Home
      (older than 18 months from date of manufacture); • refinance of an existing
      Title I Manufactured Home Loan with an advance to purchase a lot; • Conventional
      to Title I Refinance; • Conventional to Title I Refinance with an advance of
      funds; or • Short Sales and claims. When the Manufactured Home is classified
      as Real Property, Lenders must use an FHA Roster Appraiser who can certify to
      prior experience appraising Manufactured Homes as Real Property. (C) Appraisal
      Requirements for Manufactured Home and Lot Combination Appraisals are required
      on the secured Property, for the following transactions or events: • purchase
      of an Existing Manufactured Home (older than 18 months from date of manufacture);
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
      4. Manufactured Home Loan Program Handbook 4000.1 1044 Last Revised: 11/26/2025
      • refinance of an existing Title I Manufactured Home Loan with an advance to
      purchase a lot; • Conventional to Title I Refinance; • Conventional to Title
      I Refinance with an advance of funds; or • Short Sales and claims. When the
      Manufactured Home and lot are classified as Real Property, Lenders must use
      an FHA Roster Appraiser who can certify to prior experience appraising Manufactured
      Homes as Real Property. Appraisals are not required for the following transaction
      types: • Title I purchase of a New Manufactured Home; • Streamline Title I Refinance
      transactions; • Simple Title I Refinance; • Title I Refinance with advance of
      funds to purchase a New Manufactured Home; or • lots that are leased, and not
      secured by a lien. (D) Lender Requirements (1) Prior to Commencement of the
      Appraisal The Lender must determine that the Appraiser is competent to provide
      an appraisal for the interest(s) to be appraised and has access to appropriate
      third- party data sources in order to render a credible opinion of value for
      the Property. Lenders may obtain separate appraisals on a Manufactured Home
      classified as Chattel (or Personal Property), and the borrower-owned land lot
      on which the home is set, and may use different Appraisers for the different
      interests if necessary. (2) Information Provided to the Appraiser The Lender
      must provide the Appraiser with a complete copy of the executed contract for
      sale of the Manufactured Home and land, or, if the Manufactured Home and land
      are being purchased separately, the executed contract for each. The Lender must
      also provide the Appraiser with a copy of the manufactured home invoice when
      one exists. (3) Valuation Development – Borrower-Owned Land and Manufactured
      Home – Real Estate When the secured Property consists of a borrower-owned lot
      and a Manufactured Home that are, in combination, treated as real estate by
      the local government, the Lender must obtain a single appraisal from an FHA
      Roster Appraiser, use Fannie II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1045 Last Revised: 11/26/2025 Mae Form 1004C/Freddie Mac Form 70B, Manufactured
      Home Appraisal Report, and follow the guidance noted in Appraiser and Property
      Requirements for Title II Forward and Reverse Mortgages. (4) Valuation Development
      – Borrower-Owned Lot When the secured Property consists of a borrower-owned
      lot, the Lender must obtain an appraisal from an FHA Roster Appraiser. The appraisal
      of the land must comply with Required Analysis and Reporting for Unimproved
      Property Appraisal. (5) Lender Review of Appraisal The Lender must review the
      appraisal and other documentation provided by the Appraiser for errors. If the
      Lender discovers any errors on the appraisal, the report must be returned to
      the Appraiser for correction. For an appraisal that was prepared using the National
      Appraisal System (NAS), the Lender must verify that the Appraisal reflects the
      correct Property and features. The Lender must ensure that the Appraiser used
      the NAS-generated forms, did not omit figures or features that would increase
      the value, and that the information is legible. x. Property Assessed Clean Energy
      Properties which will remain encumbered with a Property Assessed Clean Energy
      (PACE) obligation are not eligible for Title I Manufactured Home loans.'
  judgment: false
