A new class of manufactured homes, known as CrossMod, is making incredible strides for homeowners. A CrossMod allows a homeowner to purchase a HUD code home using traditional site-built financing. CrossMod models are modern, stylish homes that can appreciate in value because they can use site-built homes as comps in the appraisal process.
Two Lending Options
Fannie Mae® MH Advantage® Lending
MH Advantage is an initiative from Fannie Mae that provides lending for manufactured homes with specific features. The home design and site installation requirements must be met for the home to be eligible.
Freddie Mac CHOICEHome®
CHOICEHome is an innovative and affordable mortgage program that grants home ownership for homes that are factory-built and placed as real property. These homes are built to HUD code and have several features of a site-built home such as higher pitch roof lines, garage or carport, permanent foundation that has masonry perimeter, drywall throughout, and is energy efficient.
Permanent Foundation Guidelines for CrossMod
When it comes to permanent foundations and CrossMod™ homes, some important requirements to keep in mind are:
- Ensure the home has a continuous masonry wall such as concrete, stone, or brick and installed on
a frost protected footing around the perimeter of the home.
- Plan ahead to prepare a grading plan that complies with the elevation and drainage requirements.
- There are two foundation design types that are compliant. See corresponding diagram below:
- Option 1 involves using an engineered load-bearing perimeter wall that is designed to be structurally connected to the home’s perimeter floor and serves to anchor the home.
- Option 2 is traditional vertical and diagonal tie-down straps attached to anchors that must be embedded in concrete (ground anchors are not acceptable).
Masonry Best Practices
Similarities and Differences for FHA Title II vs. CrossMod™
Because both CrossMod and FHA Title II require a HUD approved permanent foundation, a common mistake is to assume that the two foundations are the same. There are multiple HUD approved permanent foundation designs (See link below.) and some options require a masonry wall, while others do not. CrossMod specifically requires that you have a masonry wall under the home, whether it is structural or not – FHA Title II does not require this.
In many cases the perimeter masonry wall will have to be backfilled against to achieve the lower elevation requirement around the home. All masonry walls, whether structurally load bearing or not, must be constructed per HUD requirements. These requirements include specific guidelines for footer construction, waterproofing, backfill, and drainage.
For Requirements of an Enclosed Crawl Space Below Grade please click here.
*Elevation requirement only applies with MH Advantage financing. https://www.hud.gov/program_offices/administration/hudclips/guidebooks/4930.3G