FHA, CONVENTIONAL, and VA

 Financing Options for Manufactured (Mobile) Homes
Through the Title I program, FHA-approved lenders extend loans from their own resources to qualified borrowers for purchasing or refinancing manufactured homes and/or lots. FHA provides insurance to the lender to mitigate losses in case of borrower default. Credit approval depends on the applicant's credit history and ability to make regular monthly payments.

It's essential to note that FHA doesn't directly lend money but instead insures loans to incentivize lenders. Title I manufactured home loans are not considered federal government loans or grants. Borrowers negotiate the interest rate with the lender, typically fixed for the entire 20-year loan term.

Intended Use of the Loan
A Title I loan serves various purposes, including:

• Purchasing a manufactured home
• Refinancing an existing manufactured home loan
• Acquiring a developed lot for placing a manufactured home
• Combining a manufactured home and lot purchase
• The home must serve as the borrower's primary residence

Consumer Protection Measures
HUD offers dual consumer protection measures. Firstly, borrowers must sign a HUD Placement Certificate, confirming that the home has been installed and set up to their satisfaction by the retailer before the lender releases the loan proceeds. Secondly, after moving in, borrowers can contact HUD at (800) 927-2891 for assistance regarding any construction-related issues with the home.

Requirements for Eligible Borrowers
To qualify for an FHA Title I loan, borrowers should:

• Have enough funds for the minimum required down payment.
• Demonstrate sufficient income to cover loan payments and other expenses.
• Intend to occupy the manufactured home as their primary residence.
• If newly employed, you will need an employment offer letter fully executed by the new employer.

Requirements for Eligible Manufactured Homes
To qualify for an FHA Title I loan, the manufactured home must:

• Comply with the Model Manufactured Home Installation Standards.
• Include a one-year manufacturer's warranty if it's a new unit.
• It should be installed on a homesite meeting local standards for site suitability and have sufficient water supply and sewage disposal facilities.

It's important to note that Title I loan proceeds cannot be used to finance furniture items, such as beds, chairs, sofas, lamps, rugs, etc. However, built-in appliances, equipment, and wall-to-wall carpeting are eligible for financing.