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Catalog of Federal Domestic Assistance

Program Descriptions

14.162:  Mortgage Insurance: Combination and Manufactured Home Lot Loans

Popular Name:  Title I

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

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

14.162 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.

14.162 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:  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 mortgage amount is $64,800 for a manufactured home and a suitably developed lot and $16,200 for a developed lot only.

14.162 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.

14.162 PROGRAM ACCOMPLISHMENTS:

In fiscal year 1999, HUD insured 377 loans totaling $11,604,211. Estimated usage for fiscal year 2000 should be about the same.

14.162 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Type of Assistance:  Guaranteed/Insured Loans.

Obligations:  (Mortgages insured) Reported under program 14.110.

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), no charge; 24 CFR Part 201.

14.162 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 9272, Washington, DC 20410. Phone: (202) 708-6396.

(See Appendix IV for more contact info.)

14.162 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, but are reduced in later years as HUD's insurance risk decreases.

Length and Time Phasing of Assistance:  The maximum loan term is 20 years for a single-module home and lot; 25 years for a double-module home and lot; and 15 years for a lot only.

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.

14.162 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 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.