Manufactured Home Loan Insurance (Title I)

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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 of up to $48,600. The program insures private lenders against losses of up to 90 percent of the value of a single loan. Total insurance coverage is limited to 10 percent of the lender's Title I portfolio. The buyer must agree to make a 5 percent downpayment and interest rate payments determined by the lender. Annual insurance charges start at $1 per $100 of the loan amount, but are reduced in the later years of the loan. The maximum loan term varies from 20 to 25 years.

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

Eligible Customers:
All buyers who 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 Retailer.

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. Administered by the Office of Housing-Federal Housing Administration. Debt collection activities have been consolidated at the Albany Financial Operations Center, 800-669-5152.

For More Information:
For more information, refer to "Financing Manufactured Homes, HUD-265-H(10), available from the HUD Customer Service Center, 1-800-767-7468. Information can also be found at the HUD-approved Title I lender page or you can contact a HUD-approved housing counseling agency. To learn more about manufactured housing options and opportunities, try HUD's Manufactured Housing web page or the Manufactured Housing Institute website.