FHA Proposed Rules for Manufactured Homes Financing with FHA Mortgage Loans
Filed under FHA Mortgagee Letters, FHA news · Tagged: Manufactured home
This proposed rule would amend HUD’s regulations governing manufactured homes that are to be the security for Federal Housing Administration (FHA) Title I loans and Title II insured mortgage loans. The proposed rule would permit, as eligible for FHA insurance, home mortgages on manufactured homes to be installed in accordance with the Model Installation Standards, which were the subject of notice and rulemaking that resulted in a final rule published on October 19, 2007. Many FHA mortgage lenders who plan to offer home financing to their customers with manufactured homes should understand these new FHA mortgage lending rules and how they apply to their borrowers.
Acceptance of mortgage loans on these manufactured homes for FHA insurance will provide for better flexibility of design, thereby permitting additional options for affordable housing. This proposed rule would apply to all newly installed manufactured homes that are to be security for Title I and Title II loans and any manufactured home that has been previously set up and erected at another location and that is to be security for a Title I home loan. An existing manufactured house that secures a Title I loan and that has been installed or erected on a home-site in compliance with the manufacturer’s requirements for anchoring, support, stability, and maintenance would be exempt from compliance with this proposed rule, unless it is relocated from the site of its original installation after the effective date of this proposed rule. Read more at HUD.gov
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