Mortgage Insurance-Combination and Manufactured Home Lot Loans (14.162)

 

Program

14.162 Mortgage Insurance-Combination and Manufactured Home Lot Loans

 

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

14.162

 

Last Known Status

Active

 

Objectives

To make possible reasonable financing for the purchase of a manufactured home and a lot on which to place the home.

 

Types of Assistance

Guaranteed/Insured Loans.

 

Uses and Use Restrictions

HUD insures lenders against loss on mortgage loans. Insured loans may be used to purchase manufactured homes and lots for buyers intending to use them as their principal places of residence. The maximum mortgage amount is $64,800 for a manufactured home and a suitably developed lot and $16,200 for a developed lot only. The lot must be appraised by the HUD-approved appraiser. Maximum loan limits may be increased in designated high-cost areas.

 

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, HUD-approved appraisal of the lot, 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

Lot appraisal by a HUD-approved appraiser. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under E.O. 12372.

Application Procedure

Application is submitted to a HUD-approved lender for review and approval. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure

See Application Procedure.

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 downpayment is required. The interest rate is a negotiable interest rate agreed upon between the borrower and lender. Annual insurance charges start at $1.00 per $100 of the amount advanced.

Length and Time Phasing of Assistance

The maximum loan term is 20 years for a single-module home and lot; 25 years for a multiple-module home and lot; and 15 years for a lot only.

 

Post Assistance Requirements

Reports

None.

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 HUD regulations and standards.

Records

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

 

Program Accomplishments

In fiscal year 2002, HUD insured 1,592 loans for a total amount of $52,060,882. In Fiscal Year 2003, HUD estimates it will insure 875 loans for a total amount of $30,078,346.

 

Financial Information

Account Identification

86-4077-0-3-371.

Obligations

(Mortgages insured) Reported under program 14.110.

Range and Average of Financial Assistance

The maximum mortgage amount is $64,800 for a manufactured home on a suitably developed lot and $16,200 for a developed lot only.

 

Regulations, Guidelines and Literature

"Financing Manufactured Homes," HUD-265-H(10), no charge; 24 CFR Part 201.

 

Related Programs

14.110, Manufactured Home Loan Insurance_Financing Purchase of Manufactured Homes as Principal Residences of Borrowers; 14.127, Mortgage Insurance_Manufactured Home Parks; 14.142, Property Improvement Loan Insurance for Improving All Existing Structures and Building of New Nonresidential Structures.

 

Information Contacts

Regional or Local Office

None. Contact HUD at 800-767-7468 for program brochure #4340.

Headquarters Office

Chief, 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.