In March 2024, the FHA announced changes to the FHA loan limit structure, updating loan limits that had not been increased in 15 years at press time. This FHA program offers higher loan limits now, thanks to a drive to make this type of affordable housing more accessible.

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FHA Loan Limits for Manufactured Homes

June 20, 2024

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In March 2024, the FHA announced changes to the FHA loan limit structure, updating loan limits that had not been increased in 15 years at press time. The FHA Title I Manufactured Home Loan program offers higher loan limits now, thanks to a drive to make this type of affordable housing more accessible.

A press release at HUD.gov states, “The increases better align with current market prices and are expected to encourage more lenders to offer the program to homebuyers seeking to purchase manufactured homes and the lots on which they sit.”

Encouraging More Manufactured Home Loans

This is the first FHA manufactured home loan update since a 2008 modification to the program. It is meant to address what HUD Secretary Martha Fudge calls an “affordable housing supply crisis” by encouraging more lenders to make manufactured home loans.

Federal Housing Commissioner Julia Gordon says, “We hope these changes will prompt more lenders to consider using the Title I program to meet the financing needs of consumers purchasing or refinancing manufactured homes.”

The updated Title I Manufactured Home Loan Program loan limits include:
  • Combination Loan for “single-section” homes: $148,909
  • Combination Loan for “multi-section” homes: $237,096
  • Manufactured Home Loan for single-section: $105,532
  • Manufactured Home Loan for multi-section: $193,719
The FHA loan limit for lots to place a manufactured home on is $43,377. The FHA and HUD pledge to ”recalculate the program’s loan limits on an annual basis so that they keep pace with home price changes over time.”

FHA Title I Manufactured Home Loan Terms

HUD regulations say there is a six-month minimum loan term for all manufactured homes. There are also maximum loan terms as follows:
  • 20 years and 32 days for a loan on a manufactured home or on a single-section manufactured home and lot;
  • 15 years and 32 days for a manufactured home lot loan;
  • 25 years and 32 days for a loan on a multi-section manufactured home and lot.
What to Know About FHA Manufactured Home Loans

Under the FHA manufactured loan program, participating FHA lenders offer these loans for both the lot and the home. You can also purchase a home without buying land, and you can use an FHA loan to buy what HUD describes as “a developed lot on which to place a manufactured home.” HUD adds that the property “must be used as the principal residence of the borrower.”

For those who do not buy a plot of land with an FHA loan, leasing is an option with FHA Title I loans.FHA borrowers “may lease a lot, such as a site lot within a manufactured home community or mobile home park” and the lease must have an initial term of three years.

FHA loan rules also stipulate that the lot lease “must provide that the homeowner will receive advance written notice of at least 180 days, in the event the lease is to be terminated.”

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