Why Haven’t Loan Officers Been Told These Facts? Financing Crossover Modern Homes (Manufactured Housing with Modular Features)
The CrossMod
The GSEs have enhanced financing options for a relatively new category of manufactured home financing. Transactions that meet the GSEs’ enhanced manufactured home build requirements qualify for loan manufacturing, and products that differ negligibly from those for modular or site-built homes. Yes, that’s right: manufactured homes that originate, appraise, and close like a site-built home. These programs afford borrowers the same caliber of financing as modular and site-built homes. The “CrossMod®” home is a class of manufactured home introduced by the Manufactured Housing Institute that is built to construction, architectural design, and energy-efficiency standards more consistent with those of site-built homes. Think of it as manufactured housing made to look like a stick-built house.
From the FHFA
Zoning by-laws, subdivision ordinances, and other land-use regulations exclude manufactured homes (MH) from most single-family neighborhoods. To better comply with single-family land use regulations, MH manufacturers introduced CrossMod® homes in 2019, a new class of MH that are affixed to permanent foundations and classified as real property, with comparable architectural, landscaping, site design, and energy efficiency features to site-built homes. In recognition of these unique attributes, Fannie Mae developed its MH Advantage program and Freddie Mac developed its CHOICEHome program.
These programs offer CrossMod® borrowers underwriting flexibilities not otherwise available to other MH borrowers. For example, Fannie Mae’s Selling Guide states that appraisal report comparable sales for MH Advantage homes can include no more than one standard MH home. Other comparable sales must be CrossMod® or site-built homes. Freddie Mac’s Selling Guide states that appraisal reports for CHOICEHome properties should contain at least one comparable CHOICEHome sale and, if no comparable CHOICEHome sales are available, the appraiser must use the most appropriate site-built homes as comparable sales.
As CrossMod® homes tend to be at the higher end of the MH price range, the incomes of many CrossMod® buyers exceed the area median. This means that CrossMod® MHRP loan acquisitions rarely qualify for Duty-To-Serve credit, but CrossMod® homes typically sell for all-in prices well below those of comparable site-built homes.
Financing Enhancements for CrossMods
CrossMod financing by the Enterprises also eliminates the 50 bps LLPA/Credit Fee usually charged for manufactured housing. There is little difference in the loan manufacturing process between CrossMod and stick-built or Modular financing. Additionally, as the FHFA notes, appraisers may use site-built or modular homes as comparables.
Owing to the uncertainties surrounding comp selection, a qualified CrossMod-experienced appraiser should be assigned to these transactions.
HUD FHA Title II
The HUD FHA Title II (203b) program has adopted the FHFA CrossMod enhancements and utilizes the same appraisal approach. Therefore, stakeholders are relying heavily on the appraiser to justify the use of dissimilar comparables. Consequently, as with the conventional financing, if not more so, a qualified CrossMod-experienced appraiser should be assigned to these transactions.
From the 4000.1
4000.1 Last Revised: 11/26/2025, Page 859
II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages
k. Sales Comparison Approach for Manufactured Housing (11/02/2023)
ii. Exception
For a Manufactured Home certified based on the construction requirements of Fannie Mae’s MH Advantage® or Freddie Mac’s CHOICEHome® program, the Appraiser must include at least two comparable sales with similar certification, when available. If fewer than two comparable MH Advantage® or CHOICEHome® sales are available, the Appraiser must use the most appropriate site-built comparable sales available, and must provide detailed justification to support the Appraiser’s selection of comparable Properties and the adjustments made for dissimilarities to the subject Property.
A Manufactured Home certified based on the construction requirements of Fannie Mae’s MH Advantage® or Freddie Mac’s CHOICEHome® programs must have Fannie Mae’s MH Advantage® Sticker or Freddie Mac’s CHOICEHome® Label affixed near the HUD data plate. The Appraiser must include photos of the Fannie Mae’s MH Advantage® Manufacturer Sticker or Freddie Mac’s CHOICEHome® Label in the appraisal report for the Manufactured Home to meet the documentation requirement.
Urban Institute: Manufactured Housing Value
Tennessee CrossMod Development
Chart courtesy of the FHLMC
BEHIND THE SCENES: ANOTHER ONE BITES THE DUST
Tampa, FL – Kenneth Blair (54, Clermont) has pleaded guilty to one count of bank fraud. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set. Blair entered his guilty plea while on pretrial release and awaiting sentencing for a similar mortgage fraud scheme. U.S. Attorney Gregory W. Kehoe made the announcement.
According to court documents, from as early as May 2024, and continuing through July 2025, in the Middle District of Florida and elsewhere, Blair and others devised a scheme to defraud financial institutions by making materially false and fraudulent representations. Blair’s role in the bank fraud scheme included preparing and submitting fictitious and fraudulent paystubs and employment promotion letters for his clients in the names of companies to show fabricated income from employers. This caused the mortgage lenders to approve and fund mortgage loans for otherwise unqualified borrowers in exchange for undisclosed payments to Blair from his clients. The fraudulent mortgage loans were subsequently purchased and guaranteed by government-sponsored entities Fannie Mae and Freddie Mac, as well as the Federal Housing Administration.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the U.S. Department of Housing and Urban Development – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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