How the Review Works
What the lender checks on a manufactured home, and what continues after closing.
The property questions come first, then the borrower requirements and the cost. Each answer follows HUD's or CFPB's published wording.
Which manufactured homes does HUD list as eligible?
HUD's eligible HECM property types include manufactured homes built after June 1976, along with single-family homes of one to four units, condominiums, properties in planned unit developments and townhouses. HUD notes that property-type rules can change over time and that clients must confirm their property's eligibility with their lender.
HUD Housing Counseling Handbook 7610.1, page 123 (published March 2026)
Why do the build date, labels and foundation matter?
HUD's list of ineligible HECM properties includes manufactured homes built before June 15, 1976, and manufactured homes lacking HUD certification labels and a foundation that meets HUD's permanent foundation requirement for manufactured homes. If you are not sure when your home was built, or whether its labels and foundation records still exist, raise that at the start of the review.
HUD Housing Counseling Handbook 7610.1, page 123 (published March 2026)
Does it matter whether I own the land?
HUD requires the property to be held in fee simple, or on a renewable leasehold lasting at least 99 years or not less than 50 years beyond the 100th birthday of the youngest borrower. If your home sits on leased land, tell the banker and have the lease ready so the lender can check its terms.
HUD Housing Counseling Handbook 7610.1, page 123 (published March 2026)
What do I have to meet as a borrower?
CFPB says a HECM is available only to homeowners 62 and older. The home must be your principal residence, where you live the majority of the year. You must own the home outright or have a low mortgage balance you can pay off when you close, using your own funds or money from the reverse mortgage. You cannot owe federal debt, the home must be in good shape, and you must receive counseling from a HUD-approved reverse mortgage counseling agency.
CFPB: Can anyone take out a reverse mortgage loan? (reviewed August 28, 2026)
Does the loan balance grow?
Yes. A reverse mortgage adds debt secured by your home. CFPB says the amount you owe grows over time because interest and other ongoing costs are added to the balance each month, and HUD's handbook describes reverse mortgages as rising-debt, falling-equity loans. Ask for written costs, borrow only what you need and discuss alternatives with your counselor.
CFPB: How much does a reverse mortgage loan cost? (reviewed May 28, 2024) · HUD Housing Counseling Handbook 7610.1, page 162 (published March 2026)
What continues after closing?
You must pay property taxes and homeowners insurance on time, keep the home well maintained and keep it as your principal residence, where you spend the majority of the year. If you do not meet these requirements, you could lose your home to foreclosure.
CFPB: Reverse mortgage borrower responsibilities (reviewed August 9, 2024)