Good news from Fannie Mae
Fannie Mae has updated its selling guide to include construction to permanent (CTP) lending for manufactured homes. This move supports Fannie Mae’s initiatives for affordable housing. As of August 2019, manufactured housing is an accepted property type under the current guidelines as a construction to permanent loan. Through the CTP program, the borrower can now finance the acquisition of the lot, the site improvements such as grading, retaining walls, well, and septic, and transportation and installation of the home.
In addition to the site preparation costs, garages, patios, or anything else that improves the value of the property can be included in the financing.
Previously, Fannie Mae did not allow manufactured housing as an acceptable housing type for construction to permanent. Now that this change has been made, the loan amount may include the transportation and installation of the manufactured home in addition to the cost of the land and site preparation costs.
MH Advantage is eligible as well as any other HUD-approved manufactured home that meets the Fannie Mae eligibility requirements.
The update can be found in the Fannie Mae Selling Guide B5-3.1-01: Conversion of Construction to Permanent Financing Overview (08/07/2019) and the Announcement SEL-2019-07 issue date August 07, 2019.
Consumer Acceptance for Manufactured Homes
Manufactured homes have had significant upgrades over the years, and they no longer have the typical box or trailer profile. Homes that qualify for the MH Advantage have a steeper roof pitch, including an overhang and at a minimum 70 square feet for a covered porch as part of the roofline. These manufactured homes have upgraded finishings, plumbing, electrical, and foundations with crawl spaces.
Lenders should become well versed in the benefits of manufactured homes. With more and more difficulties challenging the traditional single-family site-built home, the manufactured home and the new construction to permanent financing from Fannie Mae could make a big difference for developers, borrowers, and your communities.
