Summary:
This program insures mortgage loans made by
private lenders to buyers of manufactured homes and the lots on which to
place them.
Purpose:
HUD has been providing mortgage insurance on
manufactured homes under Title I since 1969. By protecting mortgage
lenders against the risk of default, HUD's participation has encouraged
them to finance manufactured homes, which had traditionally been
financed as personal property through comparatively high-interest,
short-term consumer installment loans. The program thereby increases the
availability of affordable financing and mortgages for buyers of
manufactured homes and allows the buyers to finance purchase of their
home at a term and interest rate comparable with the commercial loans
typically used to finance manufactured homes.
Type of Assistance:
Title I programs offer coinsurance--HUD insures private lenders against
losses of up to 90 percent of the value of a single loan, while the
lender retains responsibility for the remaining 10 percent. In addition,
the insurance coverage is limited to 10 percent of the lender's Title I
portfolio. The buyer must agree to make a downpayment and interest rate
payments determined by the lender.
Title
I insurance may be used for loans of up to $64,800 for a manufactured
home and lot and $16,200 for a lot only. The lot must be appraised by a
HUD-approved lender. The dollar limits for combination and lot loans may
be increased up to 85 percent in designated high-cost areas. The maximum
loan term is 20 years for a single-module home and lot, 25 years for a
multiple module home and lot, and 15 years for a lot only.
Eligible Grantees:
Private lending institutions are
eligible for insurance on loans made under the program.
Eligible Customers:
All buyers of manufactured homes who
plan to use the homes as their principal residence are eligible for the
program.
Application:
Buyers of manufactured homes may apply for
insurance through a HUD-approved lender or through a lender's approved
Retailer. CLICK HERE to find a nearby
HUD-approved Title I lender.
Technical Guidance:
The program is authorized under
Title I, Section 2 of the National Housing Act (12 U.S.C. 1703). Program
regulations are in 24 CFR Part 201. These regulations, as well as
applicable handbooks and notices, are available electronically through
HUDCLIPS. The program is administered by the Office of Housing,
Federal Housing Administration. Contact the Home Improvement Branch at
(202) 708-2121 for more information.
For More Information:
For more information, refer to
"Financing Manufactured Homes, HUD-265-H(10), available from the HUD
Customer Service Center, 1-800-767-7468. Information can also be found
at the
HUD-approved Title I lender page or you can contact a
HUD-approved housing counseling agency. To learn more about
manufactured housing options and opportunities, try HUD's
Manufactured Housing web page or the
Manufactured Housing Institute website. |
