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Why FHA?
The spirit and intent of the Federal Housing Authority is to get people into their own homes. How many lenders or insurers can you say that about? FHA affords borrowers several benefits not found in conventional lending, e.g.;
- Lowest down payment available
- Accepts a co-borrower not living in the subject property
- 100% of the down payment can be a gift
- Not based solely on FICO scores; thinner credit acceptable in many cases
- Higher debt ratios
FHA Streamlined
Today most of your FHA conditions are satisfied with two inspections.
- Initial Inspection! – Inspection one will be requested when foundation plans are complete and prior to set-up of the home and prior to pouring any cement if needed. The inspector will be comparing home and site to the engineered foundation plans.
- Final Compliance Inspection! – Inspection two will be requested when all construction is complete. The home needs to be ready to occupy but most FHA Inspectors want an opening in the skirting (for HUD code homes) so they can visually inspect the hook ups and foundation system. The inspector will be looking at typical conditions required by your County building department.
FHA Requirements
- You will need to provide a water potability test.
- You will need to treat the land for termites (where applicable).
- A small shed and concrete platform over the well may be required in some counties.
- Engineers wet-stamp must be presented (for HUD-code homes).
FHA Paper Work
Land/Home Financial will help walk you through the paper work, which also has been streamlined.
Remember
Land/Home Financial is one of a few lenders making FHA construction loans available to the manufactured home retailer. We have the expertise to guide you through the entire process, including the documentation requirements. FHA isn’t for every borrower but it will allow you to sell some homes that you previously had to pass on.
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