Fannie Mae Selling Guide B2-3-02 — Special Property Eligibility and Underwriting Considerations: Factory-Built Housing

Fannie Mae Selling Guide B2-3-02 — Special Property Eligibility and Underwriting Considerations: Factory-Built Housing

B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built Housing (02/04/2026) Introduction This topic contains information on factory-built housing, including: Manufactured Home Property Eligibility Requirements MH Advantage Property Eligibility Requirements Modular, Prefabricated, Panelized, or Sectional Housing Eligibility Modular, Prefabricated, Panelized, or Sectional Housing Requirements Modular Construction Techniques on Multi-Unit Buildings Uniform Appraisal Dataset (UAD) 3.6 Policy Manufactured Home Property Eligibility Requirements Fannie Mae defines a “manufactured home” as any dwelling unit built on a permanent chassis that is attached to a permanent foundation system and evidenced by a HUD Data Plate and HUD Certification Label(s). For additional information, see B5-2-02, Manufactured Housing Loan Eligibility. (The terms “manufactured home” and “manufactured housing” are used interchangeably in this Guide). The table below provides additional manufactured housing property eligibility requirements. For manufactured housing appraisal requirements, see B4-1.4-01, Factory-Built Housing: Manufactured Housing. For project review methods for manufactured homes located in a condo or PUD, see B4-2.1-01, General Information on Project Standards. Published May 6, 2026 244 ✓ Requirements The manufactured home must be built in compliance with • the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976, as amended and in force at the time the home is manufactured; and • additional requirements that appear in HUD regulations at 24 C.F.R. Part 3280. Compliance with these standards will be evidenced by the presence of either a HUD Data Plate or the HUD Certification Label(s) for each section of the home for existing construction. Lenders must obtain photos of the original HUD Data Plate or HUD Certification Label(s) or provide the alternative documentation described below. If neither of these can be obtained, the loan is not eligible for sale to Fannie Mae. (Both are required for new construction). The HUD Data Plate is a paper document located on the interior of the subject property that contains, among other things, the manufacturer’s name and trade/model number. In addition to the data required by Fannie Mae, the Data Plate includes pertinent information about the unit, including a list of factory-installed equipment. The HUD Certification Label(s), sometimes referred to as a HUD “seal” or “tag,” is a metal plate located on the exterior of each section of the home. The Manufactured Home Appraisal Report (Form 1004C) must have photos of either the HUD Data Plate or the HUD Certification Label(s). As an alternative to the original HUD Certification Label(s) or the HUD Data Plate for existing manufactured homes, the lender must obtain either a label verification letter with the same information contained on the HUD Certification Label(s) or duplicate HUD Data Plate from the Institute for Building Technology and Safety (IBTS). A duplicate HUD Data Plate may also be available by contacting the In-Plant Primary Inspection Agency (IPIA) or the manufacturer. (A list of IPIA offices is posted on HUD’s website.) The unit must not have been previously installed or occupied at any other site or location, except from the manufacturer or the dealer’s lot as a new unit. The manufactured home must be a one-unit dwelling that is legally classified as real property and cannot include an accessory dwelling unit. See B2-3-04, Special Property Eligibility Considerations for additional information. The towing hitch, wheels, and axles must be removed. The dwelling must assume the characteristics of site-built housing. Published May 6, 2026 245 ✓ Requirements The manufactured home must be at least 12 feet wide and have a minimum of 400 square feet of above-grade finished area. Except for MH Advantage properties, Fannie Mae does not specify other minimum requirements for size, roof pitch, or any other specific construction details for HUD-coded manufactured homes. Site preparation for delivery of the manufactured home must be completed. The manufactured home must be attached to a permanent foundation system in accordance with the manufacturer’s requirements for anchoring, support, stability, and maintenance. The foundation system must be appropriate for the soil conditions for the site and meet local and state codes. The manufactured home must be permanently connected to a septic tank or sewage system, and to other utilities in accordance with local and state requirements. If the property is not situated on a publicly dedicated and maintained street, then it must be situated on a street that is community owned and maintained, or privately owned and maintained. There must be adequate vehicular access and there must be an adequate and legally enforceable agreement for vehicular access and maintenance. See B4-1.3-04, Site Section of the Appraisal Report, for additional information about privately maintained streets. Loans secured by existing manufactured homes that have incomplete items, such as a partially completed addition or renovation, or defects or needed repairs that affect safety, soundness, or structural integrity, are not eligible for purchase until the necessary work is completed. Exceptions to the foregoing may be made only for minor items that do not affect the ability to obtain an occupancy permit — such as landscaping, a driveway, or a walkway – subject to all requirements and warranties for new or proposed construction provided in B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements. Published May 6, 2026 246 ✓ Requirements Manufactured homes that have an addition or have had a structural modification are eligible under certain conditions. If the state in which the property is located requires inspection by a state agency to approve modifications to the property, then the lender is required to confirm that the property has met the requirement. However, if the state does not have this requirement, then the structural modification must be inspected and be deemed structurally sound by a third party who is regulated by the state and is qualified to make the determination. In all cases, the satisfactory inspection report must be retained in the mortgage loan file. MH Advantage Property Eligibility Requirements MH Advantage is manufactured housing that is built to meet construction, architectural design, and energy efficiency standards that are more consistent with site-built homes. Examples of the physical characteristics for MH Advantage include specific architectural and aesthetic features such as distinctive roof treatments (eaves and higher pitch roofline), masonry or poured concrete perimeter foundation, attached garage or carport, covered porch; construction elements including durability features, such as siding and cabinetry materials; and energy efficiency standards (minimum energy ratings apply). Fannie Mae has agreements with manufacturers of homes intended to qualify for MH Advantage based on specific design criteria. The agreement may allow the manufacturers to apply an MH Advantage Sticker to single- or multi-width manufactured homes that meet the design criteria. With the exception of the lender requirements outlined below, lenders will not be required to independently determine the property’s eligibility for MH Advantage. Lenders’ and appraisers’ responsibilities relating to MH Advantage loans are detailed below. Published May 6, 2026 247 Requirements Lender The lender must • ensure the property meets the MH Advantage eligibility requirements by reviewing appraisal photos that show the MH Advantage Sticker or the CHOICEHome® label (placed in proximity to the HUD Data Plate), • ensure that for existing construction either the HUD Data Plate or the HUD Certification Label(s) is present, and • ensure for new construction, both the HUD Data Plate and the HUD Certification Labels are present. • verify through the appraisal, Appraisal Update and/or Completion Report (Form 1004D), completion alternatives, or photos that the property includes the following site and access features: ⚬ Permanent Foundation ▪ Meet HUD’s Permanent Foundation Guide for Manufactured Housing ▪ Engineered Foundation certified by a registered architect or professional engineer; and ▪ Masonry or Poured Concrete Perimeter ⚬ Elevation ▪ Be a low-profile/residential set finished floor set ▪ Not exceed 30 inches from the bottom of the first-floor joist to the exterior grade for the front or entry ▪ Have a covered porch (minimum 72 sq. ft.) • For a single-section MH Advantage or CHOICEHome with a date of manufacture after June 4, 2026, an attached garage or carport for new construction with space to accommodate at least one car. The exterior materials and finishes for the attached garage must be at least equivalent to the remainder of the structure. • Driveway ⚬ Must lead to the home (or to the garage/carport if present). ⚬ Material must be blacktop, pavers, bricks, concrete, or cement. • Sidewalk ⚬ Must connect either the driveway or an attached garage/carport to the front entrance of the home. ⚬ Material must be blacktop, pavers, flagstone, bricks, concrete, or cement. • Gutters and Downspouts ⚬ Verify that the property includes a gutter and downspout system to direct water away from the foundation and structure. Note: Exception for an Infill Lot If an existing infill lot for a new construction cannot accommodate an attached garage/carport, driveway, and/or sidewalk, the feature and/or site improvement is not required. An infill lot is vacant or underutilized land located within a developed urban and suburban area, typically surrounded by existing buildings and infrastructure. It specifically excludes any lot located in a newly created or recently platted subdivisions. • For new construction, the lender is responsible for compliance with Fannie Mae’s standard appraisal requirements, specifically B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements and, B4-1.4-01, Factory-Built Housing: Manufactured Housing for appraisals based on plans and specifications. This will ensure that site improvements that are not attached to the home, such as detached garages, are complete. Published May 6, 2026 248 Requirements Appraisal Standard valuation requirements for manufactured homes apply, including: • B4-1.3-05, Improvements Section of the Appraisal Report • B4-1.3-10, Cost and Income Approach to Value • B4-1.4-01, Factory-Built Housing: Manufactured Housing The Manufactured Home Appraisal Report (1004C), Appraisal Update and/or Completion Report (Form 1004D), or completion alternatives must include photos of the MH Advantage Sticker or the CHOICEHome® label, as applicable, and either the HUD Data Plate or the HUD Certification Label(s), and the site showing all driveways, sidewalks, and detached structures located on the site. Note: The requirement of photos of either the HUD Data Plate or the HUD Certification Label(s) applies to existing construction. (Both are required for new construction.) Unless stated otherwise, loans secured by manufactured homes that meet the MH Advantage criteria are subject to the same requirements that apply to all manufactured homes. (References to “manufactured homes” or “manufactured housing” apply to MH Advantage unless an exception is stated.) Note that loans secured by MH Advantage properties are afforded a number of flexibilities over standard manufactured housing, including higher LTV ratios, standard mortgage insurance, and reduced loan-level price adjustments. See the Eligibility Matrix, B7-1-02, Mortgage Insurance Coverage Requirements, and Loan-Level Price Adjustment Matrix, respectively, for additional information. Modular, Prefabricated, Panelized, or Sectional Housing Eligibility Modular Homes. Fannie Mae purchases loans secured by modular homes built in accordance with the International Residential Code administered by state agencies responsible for adopting and administering building code requirements for the state in which the modular home is installed. Prefabricated, Panelized, and Sectional Homes. Loans secured by prefabricated, panelized, or sectional housing are eligible for purchase. These properties do not have to satisfy HUD’s Federal Manufactured Home Construction and Safety Standards or the International Residential Codes that are adopted and administered by the state in which the home is installed. The home must conform to local building codes in the area in which it will be located. Modular, Prefabricated, Panelized, or Sectional Housing Requirements Factory-built housing such as modular, prefabricated, panelized, or sectional housing is not considered manufactured housing and is eligible under the guidelines for one-unit properties. These types of properties must be built of the same quality of materials as and assume the characteristics of site-built housing, be legally classified as real property, and conform to all local building codes in the jurisdiction in which they are permanently located. The purchase, conveyance, and financing (or refinancing) must be evidenced by a valid and enforceable first- Published May 6, 2026 249 lien mortgage or deed of trust that is recorded in the land records, and must represent a single real estate transaction under applicable state law. The lender is responsible for perfecting the real estate title and obtaining any needed title endorsements before selling the loan to Fannie Mae when a unit is titled as personal property similarly to manufactured homes. All factory-built units must be permanently attached to a foundation that meets the standards for local building codes where the unit will be placed and in accordance with the recommendations prescribed by the unit’s manufacturer (when applicable). If the unit had axles, wheels, tow hitch, or other hardware to facilitate ease of transportation to the site, the lender is responsible for ensuring that all such hardware is removed prior to selling the loan to Fannie Mae. Fannie Mae affords modular, prefabricated, panelized, or sectional housing homes the same treatment as site- built housing. Therefore, Fannie Mae does not have minimum requirements for width, size, roof pitch, or any other specific construction details. Modular Construction Techniques on Multi-Unit Buildings Multi-unit buildings such as condos, co-ops, and townhomes may be constructed, in whole or in part, through the use of modular construction techniques. All buildings must conform to local building codes in the jurisdiction in which they are permanently located. Units in these buildings are provided the same treatment as units in multi-unit buildings constructed with site-built techniques. Uniform Appraisal Dataset (UAD) 3.6 Policy Lenders using UAD 3.6 must follow the requirements in the UAD 3.6 Policy Supplement. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SEL-2026-01 February 04, 2026 Announcement SEL-2025-07 September 03, 2025 Announcement SEL-2025-04 June 04, 2025 Announcement SEL-2024-07 November 06, 2024 Announcement SEL-2023-09 October 04, 2023 Announcement SEL-2023-02 March 01, 2023 Published May 6, 2026 250 Announcements Issue Date Announcement SEL-2022-10 December 14, 2022 Announcement SEL-2021-09 October 06, 2021 Announcement SEL-2020-07 December 16, 2020

Source: Fannie Mae Selling Guide B2-3-02 — Special Property Eligibility and Underwriting Considerations: Factory-Built Housing · source URL · snapshot 5f7b8b79da595d76