Under
the Title I program, approved lenders make loans from their own
funds to eligible borrowers to finance the purchase of a manufactured
home and/or lot, and FHA insures the lender against loss if the
borrower defaults. Credit is granted based upon the applicant's
credit history and ability to repay the loan in regular monthly
installments.
Title
I manufactured home loans are not Government loans or grants, and
are not low interest rate loans. The interest rate is fixed and
is generally based upon the prevailing market rate in the area at
the time the loan is made. FHA does not lend money.
Purpose
of the Loan
A
Title I loan may be used for the purchase or refinancing of a manufactured
home, a developed lot on which to place a manufactured home, or
a manufactured home and lot in combination. The home must be used
as the principal residence of the borrowers.
Maximum
Loan Amount
-
manufactured
home only - $48,600
-
manufactured
home lot - $16,200
-
manufactured
home & lot - $64,800
The
dollar limits for lot loans and combination loans may be increased
up to 85 percent in designated high-cost areas. For further information
on high-cost area limits, contact the local HUD field office.
Maximum Loan Term
-
20
years for a loan on a manufactured home or on a single-section
manufactured home and lot.
-
15
years for a manufactured home lot loan.
-
25
years for a loan on a multi-section manufactured home and lot.
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.
These retailers are listed in the yellow pages of your telephone
directory. They have the required application forms. FHA neither
loans money nor gives grants to purchase homes. Also, manufactured
homes must comply with the National Manufactured Home Construction
and Safety Standards. The approved FHA lender can explain the mortgage
credit and income eligibility requirements to qualify for a loan.
Consumer
Protection
HUD
provides two types of consumer protection. The borrower must sign
a HUD Placement Certificate agreeing that the home has been installed
and set-up to their satisfaction by the retailer before the lender
can give the loan proceeds to the retailer. After moving in, the
borrower can call HUD at (800) 927-2891 to get assistance about
the problems with construction of the home.
Eligible
Borrowers Must:
-
Have
sufficient funds on hand to make the minimum required downpayment
of 5 percent.
-
Be
able to demonstrate that they have adequate income to make the
payments on the loan and meet their other expenses.
-
Intend
to use the manufactured home as their principal residence.
-
Have
a suitable site on which to place the manufactured home. The
home may be placed on a rental site in manufactured home park,
or on an individual homesite owned or leased by the borrowers.
An
Eligible Manufactured Home Must:
-
Meet
the National Manufactured Home Construction and Safety Standards.
-
Carry
a one-year manufacturer's warranty if it is a new manufactured
home.
-
Be
installed on a homesite that meets established local standards
for site suitability and has adequate water supply and sewage
disposal facilities available.
The
proceeds of a Title I manufactured home loan may not be used to
finance furniture (for example, beds, chairs, sofas, lamps, rugs,
etc.). However, built-in appliances and equipment and wall-to-wall
carpeting are eligible for financing.
Equal
Opportunity in Housing
The
Fair Housing Act prohibits discrimination in housing and related
transactions--including mortgages and home improvement loans. Lenders
may not deny funds or offer less favorable terms and conditions
in lending on the basis of the borrower's race, color, religion,
sex, national origin, familial status (i.e., the presence or number
of children in a household) or disability. In addition, lending
decisions may not be based on the race, color, sex, religion, national
origin, familial status or disabilities of persons associated with
the borrower or with the area surrounding the property. If you believe
you have been the victim of discrimination in mortgage lending on
one of the prohibited bases, you may file a fair housing complaint
by contacting a local fair housing advocacy group, the Office of
Human Rights for your state or local government, or by calling the
national Fair Housing Hotline at (800) 669-9777 or TTY: (800) 927-9275.
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