Lending Options

FHA has financing for mobile homes and factory-built housing. There are two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.

Summary:

This program insures mortgage loans made by private lending institutions to finance the purchase of a new or used manufactured home.

Purpose:

HUD has been providing loan 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 buyers to finance their home purchase at a longer term and lower interest rate than with conventional loans.

Type of Assistance:

The program insures lenders against loss from default on loans. The buyer must agree to make the required downpayment and meet credit guidelines. The interest rate is negotiated between the borrower and the lender. The borrower pays an upfront insurance premium, along with an annual premium based on the declining balance of the loan. The maximum loan term is 20 years for a manufactured housing loan.

Eligible Grantees:
Private lending institutions are eligible for insurance on loans made under the program.

Eligible Customers:

All buyers who meet credit requirements and plan to use the manufactured home as their principal place of residence, are eligible for the program.

Application:

Buyers of manufactured homes may apply for a loan through a HUD-approved lender or through a lender’s approved manufactured home dealer.

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.