Manufactured Home Foundation Engineer Letters

Understanding the Role of Engineering Certifications in Mortgage Compliance

Why Real Property Classification Matters

When it comes to manufactured housing, there is a fundamental distinction between personal property and real property—and this classification has significant implications for appraisals, lending, and title conversion.

A manufactured home placed on land without a permanent foundation is typically considered personal property, similar to a vehicle. It may be titled separately from the land and financed differently, often with less favorable terms.

However, once the home is permanently affixed to a foundation that meets HUD or other code requirements, it can be legally converted into real property—meaning it is treated the same as a traditional site-built home. This reclassification is what allows the home to:

Be eligible for FHA, VA, USDA, and conventional mortgages
Be appraised at market value, not just cost to manufacture
Be conveyed with the land under a single deed/title

This transition from personal to real property is not automatic. It typically requires documentation, inspections, and in most cases, a foundation certification letter from a licensed professional engineer.

The Appraisal Angle: Cost vs. Market Value

Appraisers and underwriters often request the Cost Approach as part of their loan package—especially for new or recently installed manufactured homes.

It is not uncommon for the new purchase cost (or build cost) of a manufactured home to be lower than the final appraised market value once installed. This is due to the added value of land improvements, including:

The foundation system
Utility connections
Site grading and anchoring
Code-compliant installation

This increase in value is only recognized if the property is properly classified as real property. The foundation engineer letter becomes a critical document in this process—it confirms that the home is installed according to HUD’s Permanent Foundations Guide for Manufactured Housing (PFGMH) and applicable local codes.

What Is a Foundation Engineer Letter?

A Manufactured Home Foundation Certification Letter is a formal document prepared by a licensed professional engineer (PE). It certifies that the foundation system complies with:

HUD Permanent Foundation standards
State and local building codes
Structural and anchoring requirements for wind, seismic, and soil conditions

This certification is often required by:

Lenders (for FHA, VA, USDA, or conventional loans)
Title companies (for real property conversion)
Appraisers (to support valuation and condition reports)

Without this certification, the mortgage process may be delayed—or the property may not qualify for real property financing at all.

Our Process

At Oasis Engineering, we provide turnkey certification services for manufactured homes across the U.S. Our process includes:

Document Review (Appraisal, Photos, Site Plans, Survey, etc.)
Virtual Inspection with guidance for required photo documentation
Engineer Review & Certification Letter Issuance (usually within 1 business day)

We also offer expedited service options when timing is critical for closings or underwriting deadlines.

When to Request This Letter

During or after installation of a new manufactured home
As part of a real property conversion for title/ownership purposes
When requested by a lender, appraiser, or real estate agent
For refinance, resale, or transfer involving a manufactured home

Learn More

Visit: https://oasisengineering.com/manufactured-home-foundation-letter/
Includes detailed FAQ, video walkthrough, and intake form for service requests.