Central Coast Lending has expanded their underwriting guidelines for properties with a stick-built single family residence (SFR) AND a manufactured home on the same parcel; the once impossible scenario to finance now has three loan options!

First Option: Stick-built SFR and PERMANENTLY affixed manufactured home on the same property.

  • Appraiser must support it is common to the market with at least three closed sales with a stick built SFR and permanently affixed manufactured home
  • The property must be appraised as a 2-unit property; it cannot be appraised as an SFR with the manufactured home as an accessory unit
  • Loan must qualify under Fannie Mae underwriting criteria
  • Rental income can be considered

Second Option: Stick-built SFR and a NON-permanently affixed manufactured home on the same property.

  • Manufactured home can remain on the property as long as it was taxed as personal property
  • The wheels and axle are still attached to the manufactured home
  • If people are living in the unit (either indicated by appraiser or the home owner’s insurance policy with some type of “renter/tenant” description), then it must be documented that the manufactured home is permitted by local code
  • Rental income cannot be considered from the manufactured home

Third Option: FHA financing may be considered when there is a stick built SFR and a permanently affixed manufactured home on the same property.

  • Manufactured home must be considered an accessory dwelling and follow HUD’s Accessory Dwelling Unit guidelines
  • An Accessory Dwelling Unit must be a habitable living unit added to, created within or detached from a primary one-unit single family dwelling, it is a separate additional living unit, including: kitchen, sleeping, and bathroom facilities
  • Appraiser must classify the property as a single family dwelling with an ADU or a two-family dwelling
  • An accessory dwelling unity is usually subordinate in size, location, and appearance to the Primary Dwelling Unit
  • Appraiser must NOT include the living area of the ADU in the calculation of the Gross Living Area of the primary dwelling
  • Only one ADU is allowed on subject property