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Manufactured Home and Lot Combination Loan Program (Title I)

This program insures mortgage loans made by private lenders to finance a new or used manufactured home. The loan may also finance the lot on which the home is or will be placed.

  • The manufactured home being financed may be classified as personal property (chattel) or as real estate. The classification of a manufactured home is determined by the local or state government where the home is located. Borrowers must occupy the property as their principal residence.
  • Borrowers are not required to own the land on which their manufactured home is placed. Borrowers may lease a land lot, such as a site lot that is privately owned or located within a manufactured home community or mobile home park. The lease for a lot must comply with FHA requirements.
  • Homes that are financed must have a red metal tag attached to the exterior to show that it was built in compliance with the Manufactured Home Construction and Safety Standards. These federal standards regulate all aspects of construction, including design and construction strength, durability, transportability, fire resistance, and energy efficiency.

HUD has been providing mortgage 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 the buyers to finance purchase of their home at a term and interest rate comparable with the conventional loans typically used to finance manufactured homes.

Type of Assistance:
Title I programs offer coinsurance--HUD insures private lenders against losses of up to 90 percent of the value of a single loan, while the lender retains responsibility for the remaining 10 percent. The buyer will be required to make a down payment. The interest rate will be negotiated between the borrower and the lender.

Title I insurance may be used for loans of up to $92,904 for a manufactured home and lot and $23,226 for a lot only. When the Manufactured Home and lot are classified as Real Property, Lenders must use an FHA Roster Appraiser who can certify to prior experience appraising Manufactured Homes as Real Property. The maximum loan term is 20 years for a single-module home and lot, 25 years for a multiple module home and lot, and 15 years for a lot only.

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

Eligible Customers:
All buyers and existing owners of manufactured homes who plan to use the homes as their principal residence are eligible for the program.

Buyers of manufactured homes may apply for insurance 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. These regulations, as well as applicable handbooks and notices, are available electronically through HUD's policy documents website known as HUDclips. The program is administered by the Office of Housing, Federal Housing Administration.

For More Information:
For more information contact the National Help Desk at (800) CALL-FHA. To learn more about the design, construction, and installation of manufactured housing, including how to file a complaint about the home or gain information on missing HUD labels or regulations visit Manufactured Housing web page or the Manufactured Housing Institute website.