Financing Manufactured (Mobile) Homes (Title I)

Financing Manufactured (Mobile) Homes (TITLE I)

Under Title I Manufactured Home Loan Program, FHA approved lenders make loans to eligible borrowers to finance the purchase or refinance of a:

Manufactured Home Unit
Manufactured Home Lot
Manufactured Home and Lot (Combination)

Financing Options for your Manufactured Home:

Manufactured Home Unit

Home may be classified as personal property or as real estate.
Includes the Unit only exclusive of the lot or site and may include appurtenances.
Must meet the Model Manufactured Home Installation Standards and Program.
Must meet state local requirements governing the installation and construction of the manufactured home foundation system.
Must carry a one-year manufacturer's warranty if the unit is new.
Must be installed on a homesite that meets established local standards for site suitability and has adequate water supply and sewage disposal facilities available.

Manufactured Home Lot

Consists of a deeded parcel of real estate, a lot in a subdivision or PUD or Condominium Project.
Ownership of the lot must be Fee Simple.
Manufactured Home Unit must be placed on the lot and home must be occupied as principal residence within 6 months after date of loan.

Combination

Includes the Manufactured Home Unit and lot or site and may include appurtenances.
Title for the lot must be owned by the borrower in fee simple.
Title to the home must be in Fee Simple if classified as real estate and vehicle title is surrendered or must be treated as personal property or Chattel.

Maximum Loan Amount

All TItle I Manufactured Home Loans are subject to loan amount limits based on the following:

Nation Wide Loan Limits;
Minium Cash Investments (MCI);
Minium Decision Credit Score limitations;
Maximum Loan-to-Value (LTV); and
LTV calculation applicatible to the transaction type.

Manufactured Homes Placed on a Leased Lot

Borrowers may lease the lot on which their manufactured home is placed, such as a site within a manufactured home community or mobile home park.
When the land/lot is leased, HUD requires the initial lease term of three years.
The lease must provide that the homeowner will receive advance written notice of at least 180 days, in the event the lease is to be terminated.
These lease terms are designed to protect homeowners in case the lessors sell the land or close the park.

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.

Eligible Borrowers Must