The opportunity to engage the manufactured-housing market is considerable, and the potential for
growth is significant. According to a 2018 report by the
U.S. Census Bureau, 93,000 new manufactured homes
were shipped in 2017, and each successive year since
2011 has averaged a 10 percent annual increase in
The 2017 Manufactured Housing Facts report by
the Manufactured Housing Institute indicates that
9 percent of U.S. single-family housing starts in 2017
were manufactured homes. In addition, the report
shows that some 22 million people in the U.S. live in
If you’re interested in taking a deeper dive into the
world of manufactured-house lending, it’s important
as a mortgage originator to consider some important
factors related to doing business in that sector. They
include the following:
■ ■ Property requirements: Be critical of any underwriting guidelines that require manufactured
homes to have multiple sections, and question
limits on land-to-value ratios that may unintentionally penalize affordable housing.
■ ■ Underwriter/risk training: Examine whether your
staff has sufficient awareness and training on manufactured housing. In some cases, denials and other
barriers to loan consummation originate from a lack
of understanding of manufactured housing.
■ ■ Outreach/marketing: Examine whether your out-
reach and marketing efforts have unintentionally
limited exposure to manufactured-home builders,
retailers, installers and borrowers.
■ ■ Decline rationale: Examine previous loan denials
on properties where a manufactured home was the
primary dwelling unit. Understand the rationale
for the loan denials and determine whether opportunities for improvement exist.
On the latter point, it’s worth noting that, in some
cases, denials occur because of a missing HUD data
plate or HUD-certification labels. If this is the case,
consider training your staff to reach out to the Institute for Building Technology and Safety to obtain the
data-plate and certification-label information. This
simple and inexpensive step may save a loan.
Declinations that resulted because of the use of
distant comparables in rural areas or because the
appraiser included a mixture of manufactured-home
comparables and non-manufactured home comparables should be examined closely for reasonableness.
In some cases, appraisal reports with these characteristics are appropriate and could have been approved
rather than denied.
Declinations that occur because the manufactured
home does not appear to be considered real estate
also should be examined. Our nation has a patchwork
of state and local laws and regulations pertaining to
titling and de-titling — and the subsequent conver-
sion of manufactured housing into real estate to qual-
ify for lender financing.
It is important to understand the requirements of the
jurisdiction where the manufactured home is located.
In some cases, loan denials are driven by incorrect
understanding. In other cases, it could be remedied
by the property owner through a simple administrative effort (e.g., via an affidavit or a de-titling process
in cases where the manufactured-home owner also
owns the land). This presents another opportunity for
Although financing for manufactured housing presents some additional complexities not often present
in site-built housing, those who adapt and pursue this
market will enjoy the benefits of limited competition
and the opportunity to play a valuable role in supporting affordable-housing availability. ■
“It is important to understand the
requirements of the jurisdiction where
the manufactured home is located.”
Post your loan: ScotsmanGuide.com/LoanPost Search Matrix: ScotsmanGuide.com/fhagov
Matrix: FHA / VA / Government
LEGEND: P=Purchase; R=Rate and Term Refi; C=Cash-Out Refi; O=Owner-Occupied; V=Vacation Home; N=Non-Owner-Occupied; NINA=No Income, No Asset;
SISA=Stated Income, Stated Asset; SIVA=Stated Income, Verified Asset; F=Fixed Interest Rate; A=Adjustable Rate Mortage (ARM); B=Both
Note: 2018 Fannie Mae/Freddie Mac loan limits: 1 = $453, 100; 2 = $580, 150; 3 = $701,250; 4 = $871,450
(AK, Guam, HI & U.S. Virgin Islands = 50% higher)
All parameters on each line are used in combination
with one another — each line represents a specific
loan scenario or credit grade
FICO%/$K %/$K FICO
Min Yrs Since
Both Type I E A 45
LTV / LOAN AMOUNT COMBINATIONS
Scotsman Guide makes every attempt to ensure the quality of matrix and directory information, which all listed lenders verify or update monthly. Because of the production cycle and dynamic nature of the industry, loan product
terms and availability may not reflect the latest changes. Please contact lenders directly for the most-recent program details. If you believe data is inaccurate or misrepresented, please e-mail: firstname.lastname@example.org.
PRMG - Paramount Residential Mortgage Group NATION WIDE except: N Y W Y
FHA Full V V V Y O P 1-4 580 96.5/871 2 1 3 3 1.75 Short Sale with 0 yr avail
FHA Full V V V Y O R 1-4 580 97.75/871 2 1 3 3 1.75 Short Sale with 0 yr avail
FHA Full V V V Y O C 1-4 580 85/871 2 1 3 3 1.75 Short Sale with 0 yr avail
VA Full V V V Y O PRC 1-4 580 100/453 2 2 2 2
VAHighBal Full V V V Y O PRC 1-4 620 100/1000 700 100/1500 7 7 7 7 700FICO>$1Mand<=$1.5M
USDA Full V V V Y O P 1 640 100/453
Streamline Full V V V Y ON R 1-4 620 100/871
Streamline Full V V V Y V R 1 620 100/453
VA IRRRL Full V V V Y OVN R 1-4 620 No max LTV (no appraisal)
PRMG is a national leading lender! "Built by Originators for Originators." We deliver FHA/VA & government loan products with a high focus on purchase business, pricing and service!