Buying a HUD Manufactured Home

When considering buying a HUD manufactured home, it is important to understand what a manufactured home is.
A Manufactured Home is designed and constructed to the Federal Manufactured Construction and Safety Standards, which was created by the Department of Housing and Urban Development. For that reason, manufactured homes are also called HUD manufactured homes.
A manufactured home is factory built.
A HUD manufactured home is different from a modular home, which is also at least partially factory built. A modular home, also known as a UBC modular home, is built to the Uniform Building Code (UBC), which is the code that site built homes are built to.

Most lenders, including most banks, will not do loans on HUD manufactured homes. Those that do generally have Loan-To-Value restrictions, that is what percentage of the home's value will they loan out. Some are quite liberal, but their rates can seem high.
A mortgage broker can find the right lender for your situation.

If you lease the land that your HUD manufactured home rests on, such as in a park, your financing options will be more limited. Although there are still lenders willing to give you a loan, you will pay a higher interest rate and the guidelines for the loan will be more strict. This means that you may have a more difficult time obtaining a loan.

The term "manufactured home" was introduced in 1980 by the US Congress to describe a type of house that is constructed in a factory to comply with a building code developed by the Department of Housing and Urban Development.