FEDERAL AGENCY:

HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

National Housing Act, Title I, Section 2, as amended, 12 U.S.C. 1703.

OBJECTIVES:

To make possible reasonable financing of manufactured home purchases.

TYPES OF ASSISTANCE:

Guaranteed/Insured Loans. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

HUD insures lenders against loss on loans. Insured loans may be used to purchase manufactured home units by buyers intending to use them as their principal places of residence. The maximum amount of the loan is $48,600, whether single or multiple modules. The borrower must give assurance that the unit will be placed on a site which complies with local zoning and land development requirements.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   All persons are eligible to apply.

Beneficiary Eligibility:   Individuals/families.

Credentials/Documentation:   Documentation regarding the characteristics of the manufactured home unit and the qualifications of the borrower are submitted to the lender. This program is excluded from coverage under OMB Circular No. A-87.

Pre-application Coordination:   None. This program is excluded from coverage under E.O. 12372.

Application Procedure:   Application is submitted to a HUD-approved lender or through a lender's approved dealer for review and approval. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110.

Award Procedure:   None.

Deadlines:   None.

Range of Approval/Disapproval Time:   HUD does not participate in the approval or disapproval of individual loans.

Appeals:   The applicant may reapply.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   HUD insures private lenders against losses of up to 90 percent of any single loan with maximum insurance coverage limited to a total of 10 percent of the total amount insured. A 5 percent downpayment is required. The interest rate is agreed upon between the borrower and lender. Annual insurance charges are $1.00 per $100 of the amount advanced.

Length and Time Phasing of Assistance:   The average loan term is between 15 - 25 years.

POST ASSISTANCE REQUIREMENTS:

Reports:   Not available.

Audits:   The Department of Housing and Urban Development reserves the right to audit the accounts of lenders in order to determine their compliance and conformance with FHA regulations and standards.

Records:   Lenders are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and the FHA regulations.

FINANCIAL INFORMATION:

Account Identification:   86-4077-0-3-371.

Obligations:   (Loans insured) FY 01 $46,804,739; FY 02 $10,747,986; and FY 03 est $70,000,000.

Range and Average of Financial Assistance:  
The maximum loan amount is $69,678. The average loan amount is $47,146.

During fiscal year 2001, 1,472 loans were made. The Department expects similar number of loans to be made in fiscal year 2002.

REGULATIONS, GUIDELINES, AND LITERATURE:

"Financing Manufactured Homes," HUD-265-H(10); 24 CFR Part 201.

INFORMATION CONTACTS:

Regional or Local Office:   None. For additional information, individuals are encouraged to contact the FHA Resource Center by phone at 1-800-CALLFHA (1-800-225-5342), by email at answers@hud.gov or visit the FHA Resource Center site at http://portal.hud.gov/hudportal/HUD?src=/FHAFAQ.

Headquarters Office:   Wanda L. Sampedro 451 7th Street, SW, Washington, District of Columbia 20410 Email: answers@hud.gov Phone: (800) 225-5342

Web Site Address:  
https://portal.hud.gov/hudportal/HUD

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.