"On Frame" Modular Home - Conventional Financing

[Justin Tahilramani]

Good Morning BP,

Have a question about a house that I have under contract. It's an 1800 sq ft "on frame" modular. From what I have read, an "on frame" modular is essentially a Manufactured Home that is built to state code (vs HUD standards). There seems to be a pretty solid consensus that "off frame" modular homes are superior from a lending and resale standpoint.

This particular home will be utilized as a long term rental property. I would like the option to do a cash-out refi in the future, but there seems to be differing opinions on whether of not "on frame" modular homes meet fannie/freedie guidelines. I BELIEVE that fannie recently changed their underwriting requirements to include "on-frame" modulars.

I would probably be all into the property (after rehab) for about $60k. The property should rent for around $850/month.

Id love to get some feedback from people with experience in modular homes.