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Manufactured Homes in Colorado

Manufactured Homes in ColoradoFour percent of homes in Colorado are not made of the “bricks & sticks” typically in the urban areas of the state. The information on this page is for Manufactured Homes and not meant to include Modular, Kit, Pre-Cut or Panelized homes. Unfortunately, many lenders choose not to lend on “Manufactured Homes”. Colorado Reverse Mortgage does lend on Manufactured Homes, however there are certain requirements that you need to be aware of to determine if your Manufactured Home qualifies for a reverse mortgage.

For the sake of this article, I do make a distinction between a Mobile Home and a Manufactured Home… So, what’s the difference? A Mobile Home still has wheels, axles, a chassis and towing tongue or any combination of the aforementioned. Effectively, it still has the opportunity to be mobile. On the other hand, a Manufactured Home has these things removed and has been installed on a permanent foundation. If your home is not considered a manufactured home as it relates to this article but was still manufactured off-site (like a modular or kit home) or has a unique or uncommon building construction, discuss this with your Loan Officer upfront and be prepared to give additional information. There are other distinctions as well and some are discussed below. Since the guidelines have the potential to change or be modified with little or no advance warning, the bullets below are not intended to be all encompassing.

Reverse Mortgage Guidelines for Manufactured Homes (MFH)

  1. A Manufactured Home (MFH) is defined as prefabricated housing that is built in a factory and transported to the site for use.
  2. Must meet all FHA/HUD MFH Guidelines.
  3. No Single-wide MFHs, The size must be double-wide or larger.
  4. Minimum home size of 800 square feet.
  5. Must be constructed AFTER 06/15/1976. No manufactured homes will be accepted unless they were constructed AFTER June 15, 1976. Manufactured homes constructed prior to 06/15/1976 are prohibited by FHA/HUD.
  6. MFH built prior to 01/01/90 are taken on a case by case basis (Underwriter to determine acceptability).
  7. MFH must be on an approved permanent foundation, built and remains on a permanent chassis with tongue and axles removed.
  8. The Permanent Foundation and skirting must be poured concrete, concrete block or full brick (meeting all HUD permanent foundation guidelines) – brick, stone or any other type of veneer will only be allowed over poured concrete or concrete block. Veneers over any other substrate including brick are not acceptable.
  9. An “Engineer’s Report” is required. If you’re in the southern part of the state.  Google “Manufactured Home FHA foundation engineer in ________ (your town) to get a list of names and prices. You can also contact a MFH Dealer or Title Company in your county and they may be able to direct you to another engineer.
  10. Additions, modifications or alterations to the original structure may bring the original unit out of compliance with the HUD Manufactured Home Construction Safety Standards (MHCSS) and make the home ineligible for FHA financing. The additions must have been permitted by the county or other local authority and an engineer’s report certifying that the structural changes or additions to the property were made in accordance with the MHCSS. However, decks and staircases are excluded and generally do not need an engineer’s report.
  11. Subject property must have a Data Plate and the HUD tags. The data plate can typically be found inside the home in one of three locations: on or near the main electrical panel, in a kitchen cabinet or pantry, or in a bedroom closet. The data plate has a map of the United States to let the consumer know the Wind Zone, Snow Load, and Roof Load for which their home was built. The HUD tags are metal plates attached to the exterior of the home.  If the data plate or HUD tags cannot be found, you may request verification from the Institute for Building Technology and Safety (IBTS), by visiting IBTS’ websitehere. You may also call IBTS’ Label Department at (703) 481-2010. IBTS can provide you with 2 different certificates for a fee.
  12. No MFH Condominiums.
  13. No MFH homes on a leasehold.
  14. MFH with a SFR on the same property are not eligible.
  15. Mixed use properties are not eligible.
  16. Must be both classified and taxed as real property.
  17. MFH less than 1 year old are ineligible.
  18. 12 month “seasoning” requirement with no Deed changes during the seasoning period.
  19. Must be on the original site. Meaning, the unit must not have been installed or occupied previously at any other site or location. If the appraiser does not indicate that the property was never moved, then you will be required to provide acceptable documentation. The original contract with the Dealer will work or the permits that were issued by your local municipality can also be used. Do yourself a favor and provide those papers to the appraiser when he or she inspects your home and tell them why you are giving them those papers. However, if those are not available, we need to think outside the box. Proof of when the home was completed along with several work orders for the permanent installation address with matching serial numbers along with a Letter of Explanation by you may work.
  20. Must have permanent utilities already installed.
  21. Subject property cannot be partially or fully in a flood zone.
  22. Title must be “deactivated” and taxed as “real property”. We need a copy of the Deactivated Title; it will be stamped “INACTIVE”. You may deactivate the title yourself with the Division of Motor Vehicles; to learn more click here. You will need the V.I.N. number.