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| ## II. Origination Through Post-Closing/Endorsement | |
| ### E. Title I Insured Programs | |
| #### 4. Manufactured Home Loan Program | |
| ##### xv. Security Instrument | |
| ###### (A) Definition | |
| Security Instrument refers to any legal instrument that is commonly used in a jurisdiction in connection with a Loan secured by a Manufactured Home and/or Real Property. | |
| ###### (B) Standard | |
| A Manufactured Home Loan must be secured by a recorded lien on the home (or lot or home and lot, as appropriate), its furnishings, equipment, accessories, and appurtenances. | |
| The lien must be a first lien, superior to any other lien on that Property, and evidenced by a properly recorded financing statement, a properly recorded security instrument executed by the Borrower and any other owner of the Property, or another acceptable instrument, such as a certificate of title issued by the state and containing a recitation of the Lender’s lien interest in the Manufactured Home. | |
| The Lender must ensure that the description of the Manufactured Home as cited in the security instrument is accurate and that the security instrument creates a valid and enforceable lien on the Manufactured Home in the jurisdiction in which the Property is located. The security instrument must be recorded and perfected in the manner specified by applicable state law in the state where the Property is located. | |
| For a Combination Loan, the Lender may take a security interest in the Manufactured Home as Personal Property and concurrently place a real property lien on the land. FHA permits Manufactured Homes to be split from the land and secured separately. | |
| ##### xvi. Post-Disbursement Unit Inspection | |
| ###### (A) Inspection Requirements for Dealer-Originated Sales | |
| Dealer-originated sales of Manufactured Homes require the Lender, or an agent of the Lender who is not a Dealer, to conduct an inspection of the Manufactured Home after it has been delivered and installed at the home site. This inspection must be completed within 60 Days after the Disbursement Date. The inspection is to verify and document the following: | |
| - The terms and conditions of the sales contract have been met. | |
| - The Manufactured Home and any itemized options and appurtenances included in the purchase price of the home or financed with the loan proceeds have been delivered and installed. | |
| - The Manufactured Home has been properly installed on the home site without any apparent structural damage or other serious defects resulting from the transportation or installation of the unit, and all plumbing, mechanical and electrical systems are fully operational. | |
| **Handbook 4000.1 1133** | |
| **Last Revised: 01/10/2025** | |
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