FHA’s prefabricated housing loan program gets a makeover


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Manufactured homes are a topic that has gained traction on Capital Hill lately, with the White House announcing earlier this year that it intends to address the country’s affordable housing shortage by increasing the available offer of MH.

In September, the Biden administration also called on state and local governments to “reduce barriers to zoning and funding these types of housing – housing that allows families to own and build wealth.” “.

With renewed attention to the space of prefabricated housing, the FHA moved this week to provide updated guidance to its Title I loan program, making it easier for lenders to understand and use. (The Title I program insures mortgage loans granted by private lending institutions to finance the purchase of a new or used prefabricated house.)

This is the first consolidation of Title I program policies in nearly 40 years, and lenders will no longer need to refer to more than 120 separate policy documents, according to a press release issued by the administration. .

One of the updates to the program is Enhanced Value Determination, which “will now use a sales comparison approach” and allow qualified FHA appraisers to perform appraisals, the FHA said.


How Freddie Mac Meets Affordable Housing Challenges

As part of Freddie Mac’s mission to bring liquidity, stability, affordability and equality to the housing market, Freddie Mac created his Housing Solutions team in 2020 to reduce barriers to homeownership and provide solutions to some of the toughest housing problems in the country.

Presented by: Freddie mac

In addition, the administration extends the eligible sources of income for borrowers “in accordance with the criteria for assessing income and properties used in mortgage financing”.

The list of updates also mentions that student loan debt will be calculated on a par with FHA’s Title II mortgage insurance programs and that the administration will authorize the use of donation funds from eligible sources. The changes can be implemented immediately but must be implemented for loans closed on or after May 9, 2022, the FHA said.

“This nation is in an affordable housing crisis and prefabricated housing will be a key part of the solution,” said Lopa Kolluri, deputy senior assistant secretary for housing and the FHA. “Our new, updated Title I policies will not only expand access to credit for borrowers seeking quality and affordable manufactured home loans, but will also make it easier for lenders to offer financing through the program.” Title 1. “

At the same time, the FHA issued updated requirements for its Title I property improvement loan program “to make the requirements of this program consistent with current lending practices,” said the FHA.

The FHA Home Improvement Program provides financing that “improves the livability of a property’s utility through a secured or unsecured loan,” the press release said.

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