HUD Financing On Manufactured Homes
Did you know that HUD financing on manufactured homes is allowed under the title I program within the FHA (Federal Housing Authority)? Well they are. Every single day, thousands of potential homebuyers are approved for FHA loans to help borrowers finance and purchase, or refinance, one of today’s incredible manufactured homes and/or lots. Subject to normal loan qualifications, the borrower’s credit is granted based upon the applicant’s FICO score (a scale of creditworthiness) and their ability to make the loan payments on a regular monthly basis. While at the same time, the FHA insures the lending institution against any unforeseen loss … should the borrower go belly up and default.
Obviously, the Federal Housing Authority is not the lender of record; rather the FHA underwrites the borrowers loans as a means of encouraging institutional lenders to make reasonable mortgages available for manufactured homes.
According to HUD.gov the terms are well-defined and strict:
Use 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.
Highest 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.
Greatest 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
Thanks to websites like manufacturedhomes.com this question has become a lot easier to answer. But generally speaking, manufactured homes are ordinarily purchased through the manufacturers, dealers or local retailers that sell the prefabricated homes. Finding the specific lending institutions that specialize in financing for manufactured homes is easily obtained through both the manufacturers and any local dealers. By simply calling any of the listed manufacturers or retailers posted on our website, a buyer could easily have the required application forms sent to them via snail mail or email.
HUD’s consumer protection plan:
Providing two types of consumer protection, HUD has the consumer’s back when it comes to manufactured homes. First and foremost, the homebuyer/borrower is required to sign a HUD placement certificate, which stipulates that the manufactured home is properly installed: water running, electricity on, septic in, and generally set up to their satisfaction. All of this must be accomplished before the local retailer can receive the proceeds from the lender. Providing a further security net, the HUD borrower can call a toll-free number in order to rectify any problems that may arise with the construction of the home after the close of escrow.
Find out more about HUD financing for manufactured homes