Conventional manufactured
home loans in Michigan.
Most articles treat conventional as one set of rules. It is two. Fannie Mae and Freddie Mac differ on width, occupancy, cash-out terms, and whether a home that was moved can be financed at all. Which agency your loan goes to can decide whether the deal happens.
Yes, both Fannie Mae and Freddie Mac finance manufactured homes on owned land. The home must be built to HUD standards on or after June 15, 1976, be a one-unit dwelling legally classified as real property, and sit on a permanent foundation. Fannie Mae requires at least 12 feet of width and 400 square feet of above-grade finished area. Cash-out is capped at 65 percent LTV, well below FHA's 80 percent.
Conventional is two rulebooks
When a lender says conventional, the loan is going to either Fannie Mae or Freddie Mac. On a site-built house that distinction rarely matters to the borrower. On a manufactured home it matters a great deal, because the two agencies have written different rules.
The differences cover whether a single-width home qualifies at all, whether you can take cash out, how long the cash-out term can be, whether the home can be a second home, and whether a home that was relocated at some point is eligible. On a given property one agency may work and the other may not.
This is why a flat yes or no about "conventional" on a manufactured home is usually wrong. The useful question is which agency, and that is determined by running the file.
Cash-out is capped at 65 percent
On a site-built house, conventional cash-out goes to 80 percent of value. Most people carry that assumption into a manufactured home conversation.
On a manufactured home, a conventional cash-out refinance is capped at 65 percent LTV and CLTV on a fixed rate loan. Fannie Mae drops that to 60 percent on an adjustable rate.
FHA does not apply a manufactured home reduction. FHA cash-out stays at 80 percent of appraised value, the same as it is on a site-built house. VA guidelines permit cash-out up to 100 percent of appraised value, though individual lenders commonly cap below that.
The practical takeaway. On a manufactured home, FHA allows 15 percentage points more cash-out than conventional does. That is the reverse of the usual advice, and it is worth checking before you plan around an 80 percent number.
The term limit changed in 2026
For years, a conventional cash-out on a manufactured home was capped at a 20 year term as well as 65 percent LTV. The shorter amortization raised the payment enough that it often undid the point of the refinance.
Freddie Mac changed that. Guide Bulletin 2026-4, issued April 1, 2026, increased the maximum mortgage term for cash-out transactions secured by manufactured homes from 20 years to 30 years for loans receiving an Accept risk class through Loan Product Advisor. Loan Product Advisor was updated to support the change on April 12, 2026.
The 20 year limit still applies to loans that come back with a Caution risk class. So the term you can get depends on how the file runs, not just on the property.
If you were quoted a 20 year cash-out term on a manufactured home before spring 2026, that quote is out of date. It is worth asking again.
The 12 foot width rule and why FHA sometimes wins
Fannie Mae requires a manufactured home to be at least 12 feet wide with a minimum of 400 square feet of above-grade finished area.
FHA has no width requirement at all. Its only size test is 400 square feet of floor area. So a narrow single-wide, which was common in the 1970s and early 1980s, can clear FHA comfortably and fail Fannie Mae on width alone.
Again the opposite of what most people assume, because conventional is usually thought of as the more flexible option. On older narrow homes it is the stricter one.
And if the home is a single-wide, conventional cash-out is not available at all. Fannie Mae does not permit it, and a cash-out secured by a single-wide is not eligible for sale to Freddie Mac.
Freddie Mac changed the moved home rule
For years a manufactured home that had been installed at one site, occupied, and later relocated was effectively unfinanceable conventionally. That ruled out a lot of rural Michigan homes whose history includes a move.
Freddie Mac updated its requirements effective September 2, 2026 to permit mortgages secured by manufactured homes that have been moved from another site. Two conditions apply. The home must be inspected to verify structural integrity by a licensed professional engineer or an appropriate local, state, or federal authority, with the report retained in the mortgage file. And the home must not be located in a more restrictive wind, roof load, or thermal zone than the zone it was constructed for.
Fannie Mae has not made a comparable change. FHA and USDA both still prohibit previously moved homes. So on a home with a relocation in its history, Freddie Mac is currently the only one of the four with a path.
To be clear about what this is and is not: this applies to a home that is already sitting on the land. It is about the property's history, not about financing a move.
Where the four programs actually differ
The same manufactured home can be eligible under one program and ineligible under another. These are the rules that decide it.
| Requirement | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Minimum width | 12 ft (Fannie) | No requirement | No requirement | No requirement |
| Minimum size | 400 sq ft | 400 sq ft | 400 single / 700 double | 400 sq ft |
| Age limit beyond 1976 | None | None | None | 20 years |
| Max cash-out LTV | 65% | 80% | Up to 100% | Not available |
| Cash-out loan term | Up to 30 yrs, Freddie Accept | Up to 30 years | Up to 30 years | Not available |
| Single-wide cash-out | Not allowed | Allowed | Allowed | Not available |
| Occupancy allowed | Primary or second home | Primary only | Primary only | Primary only |
| Investment property | Not eligible | Not eligible | Not eligible | Not eligible |
| Previously moved home | Freddie yes, Fannie no | Not eligible | Ask first | Not eligible |
| Thermal zone test | If previously moved | Not applied | Not applied | Must meet Zone 3 |
Summary only, current as of publication. Agency guidelines change, and individual lenders may cap below agency maximums. Freddie Mac's 30 year cash-out term applies to Accept risk class loans; Caution risk class remains limited to 20 years. VA cash-out above 90 percent is commonly restricted by lender policy. We confirm requirements against current guides on every file rather than working from a table.
Things that catch people on conventional
None of these are obvious, and most of them are not mentioned until underwriting.
65 percent cash-out cap
Site-built conventional cash-out goes to 80 percent. Manufactured is capped at 65 percent, and 60 percent on an ARM under Fannie Mae. People plan around the wrong number constantly.
The 20 year term is gone, mostly
Freddie Mac raised the cash-out term from 20 to 30 years in April 2026 for Accept risk class loans. Caution risk class is still 20 years. If you were quoted a 20 year term before spring 2026, ask again.
Single-wide, want cash out
Fannie Mae does not allow it and a single-wide cash-out is not eligible for sale to Freddie Mac. FHA and VA both do allow it, so the program changes rather than the plan dying.
Under 12 feet wide
Fannie Mae requires at least 12 feet of width. Narrow single-wides from the 1970s and early 1980s frequently miss this. FHA does not apply a width test.
Comparable sales
At least two comps must be manufactured homes. For a single-width home, one of those must be the same single-width configuration as a sale, active listing, or pending sale. In thin rural markets that is a real constraint.
1004C or 70B, not 1004
Manufactured homes require the manufactured home appraisal form, with photos of the HUD Data Plate or Certification Label. Ordering the wrong form costs time and sometimes a second appraisal fee.
Common questions
The other three programs
If conventional does not fit, one of these usually does. The requirements are genuinely different.
We run it against all four.
Width, square footage, build date, relocation history, and what you want the loan to do. Send us those and we will tell you which program fits instead of guessing at one.
Equal Housing Lender. All loans subject to credit approval and underwriting. Program eligibility, rates, terms, and loan-to-value limits are subject to change without notice. This is not a commitment to lend. Conventional requirements described here reflect the Fannie Mae Selling Guide and the Freddie Mac Single-Family Seller/Servicer Guide, including Freddie Mac Guide Bulletin 2026-4 dated April 1, 2026. FHA and VA figures reflect HUD Handbook 4000.1 and VA program guidelines. All are provided for general education. Agency guidelines change, and individual lenders may apply loan-to-value caps and other requirements below agency maximums. References to Freddie Mac requirements for manufactured homes moved from another site reflect agency policy effective September 2, 2026 and apply to a home already situated on the property. Kirby and Angie do not finance manufactured homes located in mobile home parks or on leased land, and do not finance relocating a manufactured home. Angie Anderson NMLS #1999286 | Kirby Slocum NMLS #680817 | Union Home Mortgage NMLS #2229229. Licensed in Michigan, Ohio, and Indiana.
