March 22, 2011
FHA home loans aren’t just available for traditional suburban houses; the FHA also insures loans for manufactured housing. Just as with FHA loans for traditional homes, the FHA insures or guarantees the loan rather than providing the loan itself.
The FHA guaranty makes qualified borrowers more attractive to lenders willing to issue the loan. FHA Title I loans for manufactured homes can be used in one of three ways–to purchase the home itself, to purchase a lot for a home already owned or to be purchased, and the Title I loan can also be used to buy a manufactured home and lot in combination.
The FHA has different loan terms depending on the nature of the Title I loan. Maximum loan amounts for the home only are just under $70 thousand at the time of this writing. The maximum FHA Title I loan amount for a lot by itself is just over $23 thousand, and a home and lot combined feature a maximum loan amount of nearly $93 thousand.
These maximums can be affected by the market the buyer wants to purchase in–according to the FHA, “The maximum dollar limits for lot loans and combination loans may be increased up to 85 percent in designated high-cost areas.”
FHA Title I manufactured home loans have maximum loan terms that differ from traditional home loans. Where a suburban home could feature a 15-year or 30-year maximum loan term, Title I loans for manufactured homes have shorter terms.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
Browse by Date: