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Catalog of Federal Domestic Assistance

Program Descriptions

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

Popular Name:  Title I

Objectives:  To make possible reasonable financing of manufactured home purchases.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

14.110 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.

14.110 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:  HUD does not participate in the approval or disapproval of individual loans.

Appeals:  The applicant may reapply.

Renewals:  Not applicable.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  The maximum amount of the loan is $48,600, whether single or multiple modules.

14.110 RELATED PROGRAMS:

• 14.127 Mortgage Insurance: Manufactured Home Parks;
• 14.142 Property Improvement Loan Insurance for Improving All Existing Structures and Building of New Nonresidential Structures;
• 64.119 Veterans Housing: Manufactured Home Loans.

14.110 PROGRAM ACCOMPLISHMENTS:

In fiscal year 1999, 377 loans were made totaling $11,604,211. The estimated usage for fiscal year 2000 should be about the same.

14.110 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Type of Assistance:  Guaranteed/Insured Loans.

Obligations:  (Loans insured) FY 99 $13,000,000; FY 00 est $8,000,000; and FY 01 est $10,000,000.

Budget Account Number:  86-4077-0-3-371.

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

Regulations, Guidelines, and Literature:  "Financing Manufactured Homes," HUD-265-H(10); 24 CFR Part 201.

14.110 INFO CONTACTS:

Regional or Local Office:  Contact HUD Headquarters for program information.

Headquarters Office:  Chief, Home Improvement Branch, Department of Housing and Urban Development, 451 7th Street, SW., Room 8272, Washington, DC 20410. Phone: (202) 708-6396.

(See Appendix IV for more contact info.)

14.110 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 start at $1.00 per $100 of the amount advanced, but are reduced in later years as HUD's insurance risk decreases.

Length and Time Phasing of Assistance:  The loan term may extend for up to 20 years and 32 days.

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.

14.110 POST ASSISTANCE REQUIREMENTS:

Reports:  Monthly delinquency reports are required of major lenders.

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.