Manufactured Housing and FHA Loans
March 10, 2024
Roughly 20 million Americans have purchased manufactured housing, and most government-backed mortgage loan programs offer some type of home loan for these borrowers.
That includes the FHA, which offers home loans for manufactured housing, modular houses, mobile homes, and similar properties. Did you know there is a separate FHA loan for these homes, like there are separate FHA condo loans?
The FHA and HUD are committed to improving and expanding the manufactured housing options available through the FHA Single-Family home loan program. What are the latest efforts by the federal government to do so? We explore them below.
HUD Pledges to Increase Availability and Affordability of Manufactured Homes
WhiteHouse.gov issued a press release on the federal government’s efforts in 2024, noting, “Manufactured housing is a critical source of affordable housing, especially for low-income, rural, and Native American households and offers a potentially lower-cost pathway to homeownership.”
Manufactured housing is “the largest form of unsubsidized affordable housing in the country.” And now, the federal government is making it easier to buy and own these properties.
Grants and Loan Limits
HUD has announced competitive grants for multi-family manufactured housing efforts, but what about those who want to buy single-family residences? For those Americans, the FHA has published a final rule increasing FHA manufactured housing loan limits.
According to the Federal Register, “HUD also proposed to adjust loan limits for single-section and double or greater-section manufactured home loans annually based on changes to indexes for the average price of single-section and double-section manufactured homes, respectively.”
HUD’s plan is to set “each loan limit at the average price data for the most recent 12 months available at the time HUD calculates the adjustment, weighted according to the number of manufactured units shipped during that same period.”
FHA Manufactured Housing Loan Modernization
WhiteHouse.gov notes this increase in FHA manufactured loan limits brings the program in line with “current market prices” and makes it easier for the agency to update its limits each year.
Borrowers unsure how these rule changes affect their transaction should have a conversation with their participating FHA loan officer.
If your FHA case number was issued before the effective date of the new rules, chances are good your FHA loan limits will be the amount effective at the time the case number was issued.
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That includes the FHA, which offers home loans for manufactured housing, modular houses, mobile homes, and similar properties. Did you know there is a separate FHA loan for these homes, like there are separate FHA condo loans?
The FHA and HUD are committed to improving and expanding the manufactured housing options available through the FHA Single-Family home loan program. What are the latest efforts by the federal government to do so? We explore them below.
HUD Pledges to Increase Availability and Affordability of Manufactured Homes
WhiteHouse.gov issued a press release on the federal government’s efforts in 2024, noting, “Manufactured housing is a critical source of affordable housing, especially for low-income, rural, and Native American households and offers a potentially lower-cost pathway to homeownership.”
Manufactured housing is “the largest form of unsubsidized affordable housing in the country.” And now, the federal government is making it easier to buy and own these properties.
Grants and Loan Limits
HUD has announced competitive grants for multi-family manufactured housing efforts, but what about those who want to buy single-family residences? For those Americans, the FHA has published a final rule increasing FHA manufactured housing loan limits.
According to the Federal Register, “HUD also proposed to adjust loan limits for single-section and double or greater-section manufactured home loans annually based on changes to indexes for the average price of single-section and double-section manufactured homes, respectively.”
HUD’s plan is to set “each loan limit at the average price data for the most recent 12 months available at the time HUD calculates the adjustment, weighted according to the number of manufactured units shipped during that same period.”
FHA Manufactured Housing Loan Modernization
WhiteHouse.gov notes this increase in FHA manufactured loan limits brings the program in line with “current market prices” and makes it easier for the agency to update its limits each year.
Borrowers unsure how these rule changes affect their transaction should have a conversation with their participating FHA loan officer.
If your FHA case number was issued before the effective date of the new rules, chances are good your FHA loan limits will be the amount effective at the time the case number was issued.
------------------------------
RELATED VIDEOS:
The ARM is an FHA Adjustable Rate Mortgage
A Few Tips About Your Fixed Rate Mortgage
Monthly Payments Establish Good Credit
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