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Under the
Title I program, approved lenders make loans from their own funds to
eligible borrowers to finance the purchase of a manufactured home and/or
lot, and FHA insures the lender against loss if the borrower defaults.
Credit is granted based upon the applicant's credit history and ability
to repay the loan in regular monthly installments.
Title I manufactured home loans are not Government loans or grants, and
are not low interest rate loans. The interest rate is fixed and is
generally based upon the prevailing market rate in the area at the time
the loan is made. FHA does not lend money.
Purpose of the Loan
A
Title I loan may be used for the purchase or refinancing of a
manufactured home, a developed lot on which to place a manufactured
home, or a manufactured home and lot in combination. The home must be
used as the principal residence of the borrowers.
Maximum Loan Amount
-
manufactured home only - $48,600
-
manufactured home lot - $16,200
-
manufactured home & lot - $64,800
The dollar limits for lot loans and combination loans may be increased
up to 85 percent in designated high-cost areas. For further information
on high-cost area limits, contact the local HUD field office.
Maximum Loan Term
-
20
years for a loan on a manufactured home or on a single-section
manufactured home and lot.
-
15
years for a manufactured home lot loan.
-
25
years for a loan on a multi-section manufactured home and lot.
Manufactured homes are usually purchased through dealers or retailers
that sell the homes. The names of lenders in your area which specialize
in financing manufactured homes can be obtained from local retailers.
These retailers are listed in the yellow pages of your telephone
directory. They have the required application forms. FHA neither loans
money nor gives grants to purchase homes. Also, manufactured homes must
comply with the National Manufactured Home Construction and Safety
Standards. The approved FHA lender can explain the mortgage credit and
income eligibility requirements to qualify for a loan.
Consumer Protection
HUD provides two types of consumer protection. The borrower must sign a
HUD Placement Certificate agreeing that the home has been installed and
set-up to their satisfaction by the retailer before the lender can give
the loan proceeds to the retailer. After moving in, the borrower can
call HUD at (800) 927-2891 to get assistance about the problems with
construction of the home.
Eligible Borrowers Must:
-
Have sufficient funds on hand to make the minimum required downpayment
of 5 percent.
-
Be
able to demonstrate that they have adequate income to make the
payments on the loan and meet their other expenses.
-
Intend to use the manufactured home as their principal residence.
-
Have a suitable site on which to place the manufactured home. The home
may be placed on a rental site in manufactured home park, or on an
individual homesite owned or leased by the borrowers.
An Eligible Manufactured Home Must:
-
Meet the National Manufactured Home Construction and Safety Standards.
-
Carry a one-year manufacturer's warranty if it is a new manufactured
home.
-
Be
installed on a homesite that meets established local standards for
site suitability and has adequate water supply and sewage disposal
facilities available.
The proceeds of a Title I manufactured home loan may not be used to
finance furniture (for example, beds, chairs, sofas, lamps, rugs, etc.).
However, built-in appliances and equipment and wall-to-wall carpeting
are eligible for financing.
Equal Opportunity in Housing
The Fair Housing Act prohibits discrimination in housing and related
transactions--including mortgages and home improvement loans. Lenders
may not deny funds or offer less favorable terms and conditions in
lending on the basis of the borrower's race, color, religion, sex,
national origin, familial status (i.e., the presence or number of
children in a household) or disability. In addition, lending decisions
may not be based on the race, color, sex, religion, national origin,
familial status or disabilities of persons associated with the borrower
or with the area surrounding the property. If you believe you have been
the victim of discrimination in mortgage lending on one of the
prohibited bases, you may file a fair housing complaint by contacting a
local fair housing advocacy group, the Office of Human Rights for your
state or local government, or by calling the national Fair Housing
Hotline at (800) 669-9777 or TTY: (800) 927-9275.
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