Information regarding FHA Loans and Manufactured Homes

September 11, 2009

Recently, there have been rumors circling the industry regarding FHA manufactured housing loans. To quell those rumors the Michigan Manufactured Housing Association (MMHA), along with a liaison from FHA's Single Family housing department, confirmed that FHA still has loans available for manufactured housing. However, the lending community has been more resistant to approving loans for this type of housing. Recently, one of the biggest financers of manufactured housing has been suspended by HUD.

Below is information from the U.S. Department of Housing and Urban Development (HUD) website regarding information on financing for manufactured housing.

What are my options for financing the purchase of a manufactured home?

There are many alternatives for financing your home, including a growing number of lending institutions that are providing conventional and government-insured financing plans for prospective owners. The most common method of financing a manufactured home is through a retail installment contract, available through your retailer. Some lending institutions that offer conventional, long-term real estate mortgages may require the homes to be placed on approved foundations. Manufactured homes are eligible for government-insured loans offered by the Federal Housing Administration (FHA), the Veterans Administration (VA), and the Rural Housing Services (RHS) under the U.S. Department of Agriculture.

For additional assistance, you may wish to contact HUD's Housing Counseling Clearinghouse. HUD-approved housing counseling agencies provide housing counseling to renters, first-time buyers, and homeowners. Homeowners with problems that could result in default of their mortgage or foreclosure on their property need to contact a HUD-approved housing counseling agency immediately. HUD's Housing Counseling Clearinghouse operates a toll-free 24-hour-a-day automated voice response system that provides referrals to local housing counseling agencies, at (800) 569-4287. Referrals are also available to Spanish-speaking consumers.

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