Manufactured Home Loan Insurance-Financing Purchase of Manufactured Homes as Principal Residences of Borrowers (14.110)

 

Program

14.110 Manufactured Home Loan Insurance-Financing Purchase of Manufactured Homes as Principal Residences of Borrowers

 

Federal Agency

HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

Authorization

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

 

Program Number

14.110

 

Last Known Status

Active

 

Objectives

To make possible reasonable financing of manufactured home purchases.

 

Types of Assistance

Guaranteed/Insured Loans.

 

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.

 

Application and Award Process

Preapplication 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

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.

 

Program Accomplishments

During fiscal year 2002, 875 loans were made. The Department expects similar number of loans to be made in fiscal year 2003.

 

Financial Information

Account Identification

86-4077-0-3-371.

Obligations

(Loans insured) FY 02 $54,623,000; FY 03 est $71,000,000; and FY 04 est $71,000,000.

Range and Average of Financial Assistance

The maximum amount of the loan is $48,600, whether single or multiple modules.

 

Regulations, Guidelines and Literature

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

 

Related Programs

14.142, Property Improvement Loan Insurance for Improving All Existing Structures and Building of New Nonresidential Structures; 64.119, Veterans Housing_Manufactured Home Loans.

 

Information Contacts

Regional or Local Office

None. Contact HUD at 800-767-7468 for a brochure, item no. 4340.

Headquarters Office

Chief, Home Mortgage Insurance Division, Department of Housing and Urban Development, 451 7th Street, SW., Room 9272, Washington, DC 20410. Telephone: (202) 708-2121.

Web Site Address

http://www.hud.gov/progdesc/manuf14.cfm

 

Examples of Funded Projects

Not applicable.

 

Criteria for Selecting Proposals

Not applicable.