Manufactured / Mobile Homes and Flood Zones

Historically, a Manufactured Home in a Flood Zone has been problematic. In addition to what ever “perceived risks” Manufactured Homes in general have posed to Lenders…the Scenario of a Manufactured / Mobile  Home being located in a Flood Zone has always been a non-starter. In the past, although New Horizon Mortgage Concepts has usually been able to secure “Conventional Financing” for Manufactured Homes in a Flood Zone…Government Insured Financing (such as FHA and VA) has not been an option. However, the ever evolving Manufactured Home Financing trajectory has recently made the possibility of  Government Insured Financing a possibility at New Horizon Mortgage Concepts. Currently FEMA (the Federal Emergency Management Agency) oversees Flood Data and Information throughout the United States. There are areas known as “Flood Zones” where, in the past, flooding conditions have been known to occur. FEMA keeps track of these events and have established Data that includes Base Flood Elevations (BFE) based on historic 100 year flood conditions. In order to get Flood Insurance, a Survey of the Property is generally required in order to determine how high above the Base Flood Elevation a Structure / Improvement is located. In general, the higher the elevation, the lower the Flood Insurance Premium will be. New Horizon Mortgage Concepts is exploring using this same process (i.e. having a Survey of the Property done) in order to get Manufactured / Mobile Homes approved for Government Insured Financing. Upon completing a Survey, an Engineering Firm provides an Engineer’s Certificate that reflects how high the Home is above the BFE. The resulting information allows an Underwriter to make a determination as to whether a Property is acceptable for Financing or not.  This is yet another exciting advancement in Manufactured / Mobile Home Financing and New Horizon Mortgage Concepts is optimistic about the increased business that may transpire as a result of this evolution.