Permanent foundation, what FHA, VA, USDA, and conventional require
Every real-property manufactured home loan program. FHA Title II, VA, USDA, and conventional including MH Advantage and CHOICEHome, requires the home to be on a permanent foundation. The standard is HUD's Permanent Foundations Guide for Manufactured Housing (PFGMH). Engineer certification at appraisal is required to confirm compliance.
What "permanent foundation" actually means
- Anchored to the ground Per state wind-zone code (Zone I, II, or III). Anchoring spec varies by wind zone, coastal and tornado-alley states are stricter.
- Running gear removed: wheels, axles, tongue all removed. The home is no longer transportable as a vehicle.
- Skirting in place: perimeter skirting (concrete block, brick, vinyl) closing off the space between the home and the ground.
- Pier and beam spec Meeting PFGMH, usually concrete piers on footings, with the home set down on them. Specific spacing and load capacity per the PFGMH.
- Utility hookups Permanently connected (water, sewer or septic, electric, gas if applicable).
Engineer certification
A licensed structural or civil engineer inspects the foundation and signs off that it meets PFGMH. This certification is filed with the appraisal package. Cost runs $300 to $600 in most markets. The engineer is paid by the borrower or by the seller depending on contract terms.
Mike maintains a working list of engineers by state who are familiar with PFGMH inspection. Scheduling the engineer in parallel with the appraisal avoids 2-week delays.
Common failure points
- Pier-and-beam without anchors. Common on older installations. The piers exist but the anchoring (cross-bracing, ground anchors) was never installed. Solution: Retrofit anchoring before closing.
- Missing skirting. Open underbelly fails PFGMH. Solution: Install perimeter skirting before close.
- Wheels and axles still attached. Common when an older home was set up assuming it might be moved. Solution: Remove running gear before engineer inspection.
- Wrong anchoring for wind zone. Anchoring spec installed correctly for Wind Zone I but the home is in a Wind Zone II or III area. Solution: Upgrade anchoring to the appropriate spec.
- No engineer certification yet. Easy to fix, schedule the inspection. The cost is small; the documentation is required.
What if the foundation does not meet PFGMH?
The home either gets retrofitted before closing (most common path) or the buyer pursues chattel financing instead of real-property programs. Retrofit cost varies, usually $2K to $8K to add anchoring, replace skirting, and remove running gear. Mike can introduce you to contractors who do this work routinely.
What this means for your timeline
Plan 5 to 10 days for engineer certification on a property where the foundation already complies with PFGMH. Plan 30 to 60 days if retrofitting is required. Mike scopes this at pre-qualification so the timeline does not surprise the buyer.