Section 207 Program insures mortgage loans to facilitate
the construction or substantial rehabilitation of multifamily manufactured home
Section 207 promotes the creation of manufactured
home communities by
increasing the availability of affordable financing and
Type of Assistance:
FHA mortgage insurance for HUD-approved
The program insures lenders against
loss on mortgage defaults. Insured mortgages may be used to finance the construction
or rehabilitation of manufactured home parks. Home parks must consist of 5 or
more spaces. Contractors for new construction and substantial rehabilitation projects
must comply with prevailing wage requirements under the Davis-Bacon Act.
Eligible mortgagors include investors, builders,
developers and others who meet
HUD requirements for mortgagors.
Families, individuals, or elderly persons owning manufactured
homes or desiring to lease spaces in a manufactured park.
The sponsor has a pre-application conference with the local HUD Multifamily
Hub or Program Center to determine the preliminary feasibility of the project.
The sponsor must then submit a site appraisal and market analysis (SAMA) (for
new construction projects) or a feasibility application (for substantial rehabilitation
projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor
submits a firm commitment application through a HUD-approved lender for processing.
Considerations include market need, zoning, capabilities of the borrower, and
availability of community resources. If the project meets program requirements,
the local Multifamily Hub or Program Center issues a commitment to the lender
for mortgage insurance.
The program is authorized
under Section 207 of the National Housing Act
(12 U.S.C. 1713), Public Law
84-345. Program regulations are in 24 CFR Part 207.33. The basic program instructions
are in HUD Handbook 4545.1, Mobile Home Park Program available on HUDclips.
The program is administered by the Office of Multifamily Housing Development .
In fiscal year 2011, the Department did not insure any mortgages
under this section.