FHA Mortgage Blog
1-4 unit primary residences, Planned Urban Developments (PUDs), Approved Condos, Double-wide manufactured homes, and Modular or pre-cut housing are all considered to be eligible. Special eligibility requirements for certain properties are listed below.
3-4 Unit Properties
The 3-4 Unit Property must be self-sufficient. The net rental income must be equal to or greater than the monthly mortgage payment. The net rental income is the appraiser's estimate for vacancies or the vacancy factor used by the jurisdictional HOC, whichever is greater.
Borrowers must still qualify for the mortgage based on income, credit, cash to close, and projected rents received from the remaining units.
Borrowers must have reserves equivalent to three months of PITI mortgage payments. These reserves can not be gifted and must be the borrowers own funds.
Must have a floor area of not less than 400 square feet.
Be constructed after June 15, 1976, in conformance with the Federal Manufactured Home Construction and Safety Standards, as evidenced by an affixed certification label.
Be classified and taxed as real estate.
The mortgage must cover both the manufactured unit and its site.
It must not have been installed or occupied previously at ant other site or location.
Built and remains on a permanent chassis with all wheels removed.
Affixed to a permanent slab with utility connections.
Rural properties are FHA eligible however no value can be assigned to any acres above 10. The sales price of the property must rely only on the first 10 acres including the house.
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