Archive for month: September, 2025

FHA loans can be used to finance manufactured homes — but not just any will qualify. The property has to meet certain standards before the loan gets approved. These rules cover things like the home’s construction date, how it’s placed, its foundation, and its condition.

Some of these requirements are basic. Others can trip you up if you don’t know them upfront. This article breaks them down clearly, so you can move forward with fewer surprises.

What the FHA Considers a Manufactured Home

Let’s start with what qualifies. For FHA purposes, a manufactured home isn’t just any mobile home or trailer.

To meet the official definition, the home must:

• Have been built on or after June 15, 1976
• Follow HUD’s Federal Manufactured Home Construction and Safety Standards
• Have a visible HUD certification label on the exterior
• Include a Data Plate inside (often found in a cabinet or closet)

Anything built before that 1976 date — no matter how well maintained — isn’t eligible. That’s a hard cutoff.

Also, modular homes and tiny houses don’t qualify under these same rules unless they’re built and classified differently.

The Foundation Matters — A Lot

One of the biggest sticking points is how the home is installed. The FHA doesn’t allow manufactured homes to sit on temporary blocks or skirting alone.

The home must be:

• Permanently attached to a foundation
• Anchored securely to withstand wind or shifting
• Fully connected to utilities — water, sewer, power, etc.
• Set up with a crawl space that’s sealed and ventilated
• Properly skirted to prevent moisture or pests

Here’s the thing — if a home is being moved to a new site, it must be reinstalled to current HUD specs. That usually requires a professional installer and an engineer’s report.

Where the Home Can Be Located

The FHA doesn’t care just about the home — they care about where it sits.

These placements are allowed:

• On your own land
• On leased land (as long as the lease is for at least 3 years)
• Inside a manufactured home community that meets local zoning rules

Placement is often where people run into trouble. The land must be marked for housing, and manufactured homes have to be allowed there by local rules. No zoning = no loan.

Property Condition and Appraisal

The home also needs to be in livable condition and pass an FHA appraisal.

An FHA-approved appraiser will check for:

• Basic safety and structural soundness
• Signs of damage, leaks, or faulty systems
• Proper utility hookups
• HUD label and Data Plate (yes, again)
• General condition compared to other homes in the area

If problems show up, the lender may ask for repairs before moving forward. Sometimes those fixes are small. Other times, they stop the deal.

Borrower Rules Still Apply

Even if the home is okay, you still need to qualify. That means having enough income, a good credit score, and not too much debt.

If you’re not sure what that means for you, check out FHA Loan Requirement CA for the full list. That’ll help you get a clear picture of whether you qualify.

Lender Choice Really Matters

Here’s something people often don’t realize — not every FHA lender handles manufactured homes. Some avoid them entirely, while others only finance them under specific conditions.

Ask these questions before starting the application:

• Do you offer FHA loans for manufactured homes?
• Will you finance homes on leased land?
• Are there limits on how old the home can be?

It helps to work with FHA Lenders that are experienced in manufactured housing. They’ll already know the ins and outs — and can save you from hitting walls later.

Final Thoughts

FHA loans can absolutely be used to buy a manufactured home. But the home has to follow certain rules. It must be built after 1976, set on a permanent foundation, placed on approved land, and pass an FHA appraisal.

Getting all of this right takes a little planning — but it’s worth it. Take the time to double-check the home, the land, and the lender before you get too deep into the process. That’s the best way to keep your financing on track.

Getting a loan for a manufactured home can feel tricky — especially if you don’t own the land where it’s going to sit. The good news? You don’t have to.

With an FHA Title 1 loan, it’s possible to finance a manufactured home even if you’re leasing the lot. This loan is insured by the Federal Housing Administration and is available through lenders that work with the program. It’s especially useful if you’re living in a mobile home park or plan to place a home on rented land.

Let’s walk through how it works — and what to expect if you’re applying.

What Makes the Title 1 Loan Different?

Unlike traditional home loans, this one is made for manufactured housing. You can use it to:

• Buy a manufactured home
• Pay for upgrades, repairs, or improvements
• Finance the land (if the rules allow)
• Or handle a mix of the above

The biggest thing that sets it apart? You don’t have to own the land. If your home is going into a mobile home community or leased lot, this might be one of the few loan options available.

Who It’s For

Most people think they need perfect credit to get a loan for a manufactured home. That’s not the case here. Title 1 loans are designed to be more accessible.

Here’s the general idea:

• You should have stable income and a fair credit history
• The home has to be your main residence — not a rental or vacation home
• If you don’t own the land, the lease typically needs to be at least 3 years

And while FHA backs the loan, it’s offered by private lenders. So, you’ll still need to qualify with a lender — and not all FHA lenders offer Title 1 loans, so ask first.

How Much You Can Borrow

There are clear loan limits, depending on what you’re financing:

• Buying just the home: up to $69,678
• Buying the home with land: up to $92,904
• Buying land only (if you already own the home): up to $23,226

These amounts are capped by FHA rules, and they’re separate from the larger FHA mortgage limits used for traditional homes. If you’re considering those, check out the FHA Loan Limits California 2025 for context.

Repayment periods are based on what you’re using the money for:

• Up to 20 years for a home
• Up to 15 years for land
• Up to 10 years for repairs

These are fixed-rate loans, so your payments stay the same the whole time.

What Kinds of Homes Qualify?

Only homes that meet certain HUD requirements are eligible.

The basics:

• The home must be built after June 15, 1976
• It must be labeled a manufactured home, not modular or tiny
• It should meet HUD code and display the HUD certification tag
• You must live in the home full time
• The home needs to be placed on a foundation, or in a community with proper utilities

If you’re using the loan for repairs, they need to be tied to health, safety, or habitability — not cosmetic upgrades.

Why Borrowers Use This Loan

Many buyers turn to this loan when other financing options won’t work. Here’s what draws people to it:

• You don’t have to own the land
• You can use it for buying, setting up, or fixing the home
• Lower credit barriers compared to traditional home loans
• Predictable monthly payments
• Longer terms than personal loans or credit cards

Some people use it as a starter loan — a way to get into a stable home, even if they don’t have land yet. Others use it to upgrade their current manufactured home with repairs that improve safety and comfort.

How the Application Works

The steps aren’t too different from applying for a standard home loan. The big difference is finding a lender that offers Title 1 financing.

Some FHA lenders do, but many don’t — so start there.

You’ll likely need:

• Photo ID and Social Security info
• Proof of income (W-2s, tax returns, etc.)
• Lease agreement (if the home will be on rented land)
• Property details (year, model, size, HUD label info)
• Quotes for any work, if you’re financing repairs

Lenders will look at your full picture — income, credit, debts — and decide what you qualify for. If you’re financing land, there may be zoning or documentation steps to take too.

Last Thoughts

The FHA Title 1 loan fills a gap that many buyers fall into — especially if you’re trying to finance a home that’s not on traditional real estate. It opens the door for people who are ready to own but aren’t in the perfect credit or land-ownership spot yet.

The best thing to do is talk to a lender who’s familiar with manufactured housing. Ask them directly if they handle Title 1 loans. Not all of them will, but the ones who do can help you move forward.

With the right plan, this loan can be the key to getting a stable, affordable place to call home — no land purchase required.

FAQs

1. Can I get an FHA Title 1 loan if I don’t own the land?

Yes, you can. You just need a land lease that runs for at least 3 years. The home also has to meet FHA standards.

2. Do I need great credit for a Title 1 loan?

No, perfect credit isn’t required. If your credit is fair and your income is steady, you’ve got a decent chance. The lender looks at your overall finances.

3. What kind of repairs can I do with an FHA Title 1 loan?

Only necessary fixes — not upgrades. It has to be repairs that make the home safer or more livable. So things like heating, plumbing, roofing? Yes. New flooring just for style? Probably not.

4. How long does it take to get approved for a Title 1 loan?

It varies by lender. If everything’s in order — your docs, the home, the land — it can move pretty fast. A few weeks in some cases, longer in others.

Thinking about using an FHA loan to buy a home in California? Good move — they’re popular for a reason. Lower down payments, easier credit rules, and government backing make them a solid option. But there are conditions you’ve got to meet. Let’s go through them.

Credit Score Stuff

Your credit score decides what kind of deal you can get.

• If it’s 580 or higher, you’re in good shape — just 3.5% down.
• Between 500 and 579? It gets trickier. You’ll likely need to put down at least 10%.
• One thing though — lenders might want a higher score, even if FHA says 580 is okay. So it really depends on who you’re working with.

What About the Down Payment?

It ties right back to your credit.

• Score 580+? You’re looking at 3.5% down.
• Score under that? It jumps to 10%.
• Some folks use gift funds (from family, usually), or down payment help programs. Both are allowed, but check that they’re approved.

Debt and Income (a.k.a. Can You Afford the Loan?)

FHA lenders want to make sure you’re not stretched too thin.

• They’ll look at your debt-to-income ratio, or DTI. That’s how much of your income goes to bills and loans.
• 43% is the general limit, but some lenders go a little higher. Still, staying under 43% is safer.

Income and Job History

Here’s where you show you’ve got steady cash coming in.

• Lenders usually want to see two years at the same job or field.
• You’ll need pay stubs, W-2s, or tax returns.
• Self-employed? It’s doable, but expect to show more paperwork (like 1099s, full tax filings, etc.)

What Kind of Property Can You Buy?

Not just any home qualifies.

• The place has to be your main home. No second homes or rentals.
• The house needs to pass an FHA appraisal, which involves checking things like heat, plumbing, roof, safety stuff.
• If the place has major issues, you may have to fix them before getting approved.

Mortgage Insurance (Yep, It’s Required)

FHA loans always come with mortgage insurance. That’s how they keep risk low for lenders.

• There’s an upfront fee (1.75% of the loan) — you pay it when the loan starts, or roll it into the loan.
• Then there’s a monthly insurance fee. That keeps going for a while.
• If you put 10% down, you might be able to cancel the monthly part after 11 years.

Loan Limits in California

FHA loans don’t let you borrow unlimited amounts. There’s a cap based on where you’re buying.

• In cheaper counties, the limit is about $524,000.
• In pricey spots like L.A. or San Francisco, it goes over $1.2 million.
• These limits change every year. Always look up your county before house hunting.

Real Talk: What You Need to Get Approved

Let’s cut to the chase. You’ll need:

• A credit score of at least 580 (or 500 with more money down)
• Steady income and a job history
• Enough for 3.5% or 10% down, depending on credit
• A house that meets FHA’s safety standards
• Monthly income that supports the loan without overloading your budget
• Mortgage insurance (no way around it)

Final Thought

FHA loans help a lot of people buy homes — especially in a state like California, where prices are high and saving up 20% down isn’t always realistic. But even though the rules are more flexible than other loans, you still have to meet the key points.

It’s worth talking to a local FHA lender. They’ll tell you exactly where you stand, what’s possible, and what to do next. Rules are one thing — but guidance helps even more.

If you are active in real estate, you’ve probably heard of the 1031 exchange Florida. It’s a tool that lets you sell an investment property and buy another without paying capital gains tax right away. Many investors use it to keep their money working instead of losing a large portion to taxes.

But one detail always causes confusion. What actually counts as like-kind property? In 2025, the definition is broad but comes with rules you need to follow. Let’s break it down step by step.

What Is a 1031 Exchange?

A 1031 exchange comes from Section 1031 of the IRS code. It allows you to swap one property held for investment or business use for another. When done correctly, you can defer capital gains taxes.

Think of it as trading up. Instead of cashing out, you keep rolling your money forward into new real estate. This helps you grow wealth and scale your portfolio over time.

What Qualifies as Like-Kind Property?

Like-kind does not mean identical. It simply means the property is similar in nature or character. For real estate, this definition is very flexible.

Here are examples that qualify:

• Vacant land exchanged for an office building
• A rental apartment traded for a strip mall
• A warehouse exchanged for farmland
• A single-family rental traded for a hotel property

As long as both properties are used for business or investment, they qualify. The location can be different. The type can be different. What matters most is that both are real estate investments.

What Doesn’t Qualify?

Some properties do not meet the rules. These include:

1. Your personal home
2. Property you buy to flip quickly
3. Inventory or land held mainly for resale
4. Stocks, bonds, or partnership shares
5. Personal property like cars or art

The rule is simple. If you hold the property for personal use, it won’t qualify. If it is an investment, it likely will.

Qualifying Properties for a 1031 Exchange

To make things clearer, here are some common qualifying property exchanges:

• Raw land for a rental building
• A small retail property for a larger shopping center
• An industrial facility for a multifamily apartment complex
• A vacation rental for farmland

This flexibility makes 1031 exchange services so important. With the right planning, investors can adjust their portfolios without triggering a big tax bill.

2025 Updates: What’s New This Year?

In 2025, 1031 exchanges remain strong, but there are a few updates. The IRS now asks for clearer proof of investment intent. That means good records and clear paperwork. Holding periods also matter more.

If you want to show investment intent, you should plan to hold the property for some time before exchanging it. The guidance suggests at least one to two years is a safe range.

Another update relates to tighter deadlines for paperwork. Investors must be extra careful with timing. The 45-day identification rule and the 180-day completion rule are still in place. Missing these windows can ruin the exchange.

A 1031 Exchange Can Be a Powerful Tax Strategy

The power of the 1031 exchange lies in tax deferral. You can keep trading up into bigger properties without paying taxes at each step. This lets your investment capital grow.

For example:

• You sell a rental home for $500,000.
• Normally, you’d pay tax on the gain.
• With a 1031 exchange, you reinvest all $500,000 into a new property.
• Over time, you keep repeating this, moving into larger and more profitable investments.

This strategy allows compound growth without the drag of taxes slowing you down.

Do Properties Have to Be in the Same Asset Class to Be Like-Kind?

No. You don’t need to stick to the same type of property. A farm can be traded for a retail store. A hotel can be swapped for raw land. The IRS allows flexibility.

This is why so many investors use 1031 exchanges. They can shift focus, change markets, and try new property types without giving up their tax advantages.

Do Rental Properties Count as Like-Kind for 1031 Exchanges?

Yes, rental properties are some of the most common assets used in exchanges. A single-family rental, duplex, or vacation rental can all qualify.

For instance, investors in 1031 exchange Florida markets often trade smaller rental homes for larger apartment complexes. This lets them scale up their income streams while deferring taxes.

What Is Property Held for Sale or Resale?

This is where many investors get tripped up. Property held for resale is not eligible. The IRS views this as inventory, not investment.

For example, if you buy land only to resell quickly, that is resale property. If you flip a house right after purchase, that is resale property. The IRS expects you to hold your property as an investment for a period before exchanging it.

Can You Do a 1031 Exchange on Personal Property?

No. Since 2017, personal property no longer qualifies. That means things like cars, equipment, artwork, or collectibles are not eligible.

The 1031 exchange is now focused on real estate only. This makes the rules cleaner but also means investors need to keep exchanges within the real estate market

Final Thoughts

In 2025, the 1031 exchange Florida continues to be one of the strongest tools for real estate investors. Like-kind property rules remain flexible, but the IRS expects clear proof of investment intent and proper paperwork. Rental homes, farmland, office buildings, retail space, and industrial properties all qualify. Personal residences, flips, and inventory do not.

Used correctly, this strategy can help you grow your portfolio while deferring taxes at each step. For expert support and guidance, many investors trust Altfn.