What is FHA HUD Engineered Foundation Certification for Manufactured Homes?
An engineer’s FHA HUD foundation certification is required by lenders for manufactured homes. The main lenders for manufactured homes are VA, FHA, or USDA. Moreover, these services include an on-site inspection of the home. They will assess compliance with the requirements of HUD-7584 (Guidebook 4930.3G) Permanent Foundations Guide for Manufactured Housing, dated 1996.
After an inspection, providing the home complies, the engineer issues a certified letter of compliance with an Professional Engineer seal. On the other hand, if found out of compliance you will receive a letter stating the findings. This letter will let you know exactly what is needed for your home to be brought into compliance.
What Is The Purpose of Getting This Done?
In 1992 Hurricane Andrew then the Northridge earthquake in 1994 thousands of federally funded manufactured homes were destroyed. As a result, the foundations were found to be inadequate for high winds and seismic events. Thus, in 1996 the federal Department of Housing and Urban Development (HUD) issued HUD-7584 to create a higher standard for manufactured home foundations.
In most cases HUD-7584 exceeds the requirements of most local and state jurisdictions setting a “high benchmark” to qualify for federal funding. Although this requirement does not apply to conventional bank mortgages or cash purchases, it does make good sense for your manufactured home.
Who Pays for Inspections and or Repairs?
Usually, the lender will require that the buyer pay for the inspection. However, in cases of non-compliance, it is typically the Seller’s responsibility to pay for any corrections needed.
Generally, the remedies vary in cost. However, in our experience homes are insufficiently braced for wind and seismic. Repairs must be made to their foundations for earthquake resistant bracing or more tie-downs.
The Advantages for Sellers to Get Foundation Certifications Ahead of Selling
The benefit for the seller is this, listing your home as eligible for VA, FHA, or USDA financing. When buyers are made aware that your home meets all requirements for financing, they are more inclined to begin negotiations. Obviously, this is also a great incentive to both the buyer and the real estate agent.