Under the Title I program, FHA approved lenders make loans from their own funds to eligible borrowers to finance the purchase or refinance of a manufactured home and/or lot. 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.

Government Loans, FHA, FHA 203K, FHA 203, FHA Streamlines, VA, Reverse Mortgage, Manufactured Homes, New Purchase
FHA does not lend money, they only insure the loans. Title I
manufactured home loans are not Federal Government loans or grants. The interest rate, which is negotiated between the borrower and the lender, is required to be fixed for the entire term of the loan, which is generally 20 years.
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 borrower.

Maximum Loan Amount
•Manufactured home only - $69,678
•Manufactured home lot - $23,226
•Manufactured home & lot - $92,904

The maximum 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 (800) CALL-FHA.

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.

Locating a Dealer
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.

Manufactured homes must comply with the Model Manufactured Home Installation Standards, and all applicable state and local requirements governing the installation and construction of the manufactured home foundation system.

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 to make the minimum required downpayment
•Be able to demonstrate that they have adequate income to make the payments on the loan            and meet their other expenses.
•Intend to occupy 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, provided the park and lease agreement meet FHA           guidelines. The home may be situated on an individual homesite owned or leased by the                borrower.

An Eligible Manufactured Home Must:
•Meet the Model Manufactured Home Installation Standards.
•Must carry a one-year manufacturer's warranty if the unit is new
•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
.
Rules For FHA Manufactured Homes

FHA mortgage loans are available for much more than just suburban
homes or condominiums. FHA loans can also be used to purchase
mobile homes, manufactured homes and/or modular homes.

Manufactured homes are often sold and transported in sections to
be assembled on-site. Some buyers may wonder if the assembly
counts as “construction”, and would such “construction” reclassify
the manufactured home in the eyes of the FHA?

The FHA defines a manufactured home differently than new or
existing construction properties--what does the FHA consider different than with
those new construction or existing construction suburban homes?

According to FHA rules, a manufactured home differs from a new construction project because of the nature of its assembly. New construction property is built “on-site”. FHA defines a manufactured home as “a structure that is transportable in one or more sections. In traveling mode, the home is eight feet or more in width and forty feet or more in length.”

These homes are regulated under the rules known as Federal Manufactured Construction and Safety Standards and must be labeled accordingly. To be eligible for FHA mortgage insurance, the manufactured home must be built after June 15, 1976 and there must be a certification label to prove it. Manufactured home floor space can not be smaller than 400 square feet and must be classified as real estate.

The only manufactured homes that may be classified as real estate or “real property” are those which have a permanent foundation built to FHA standards. They must be considered a “permanent dwelling” or the home is considered personal property for tax purposes and is ineligible for an 30-year FHA mortgage. According to FHA requirements, “the mortgage must cover both the manufactured unit and its site and shall have a term of not more than 30 years from the date amortization begins…”
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