Mobile Home Financing programs

A term used when describ­ing a mobile or man­u­fac­tured home mort­gage. Specif­i­cally when the home is not financed with the land.

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 man­u­fac­tur­ers 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 bor­row­ers 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.