Mortgage Daily Logo
mortgage news from industry experts

FHA Expansion Sought For Mfg Homes

FHA Expansion Sought For Mfg Homes

Manufactured Housing Institute hosts conference call

January 23, 2008


photo of Coco Salazar
A trade group is calling for program options on manufactured home loans, which account for just a fraction of U.S. mortgage production, to be expanded.

Between 60 and 70 percent of the roughly 400,000 manufactured housing loans made in 2007 were mortgages, according to a press briefing Tuesday by the Manufactured Housing Institute and Rep. Joe Donnelly, an Indiana Democrat on the House Financial Services Committee. The volume was just a “sliver” of the overall mortgage market.

Shipments of new manufactured homes are expected to rise to up to 105,000 this year from about 96,000 in 2007, when they accounted for more than 10 percent of all new home sales. In 2000, shipments of factory-built homes were 250,000, according to the call.

Florida, California and Arizona, which accounted for around 30 percent of all manufactured home shipments during the past three years, have seen a decline in shipments.

The glut of site-built home inventory has also hindered the progress made in the Gulf Coast area. However, the institute forecast continued strength in that area, other than Florida, and improved financing environment or manufactured homes in 2008.

There are roughly 8.7 million manufactured homes nationwide housing 18 million people, the institute said. The homes appeal to a large segment of the emerging markets, while many baby boomers are also choosing them as second homes.

The institute is focused on improving capital flow to manufactured housing by modernizing Federal Housing Administration’s Title I and Title II programs and cooperating with the government-sponsored housing enterprises for the development of wider loan choices — including acquisition of manufactured housing personal property loans — and more flexible underwriting, MHI said in announcement.

The FHA Title 1 program, which involves home-only loans for the manufactured homes on either leased or owned land, has seen its loan volumes drop “precipitously” to less than 1,500 loans per year for the last several years, compared to 40,000 in 1992, primarily because it is outdated, said Brian Cooney, MHI senior vice president, in the call.

The FHA Manufactured Housing Loan Modernization Act would reform the FHA Title 1 program to boost loan limits on manufactured homes from the current $48,600 to approximately $70,000 and then index them on an annual basis. It would mandate loan-by-loan insurance and increase the Title I up-front insurance, the institute said.

“We believe [President Bush] will sign it into law,” Donnelly said in the call. “We feel this is going be a real shot in the arm for manufactured housing,” and help solve “part of our housing problem.”

MHI announced it has also called on Congress to make FHA loans available for manufactured housing condominiums and to enable FHA to serve more borrowers living in manufactured housing and in land-lease communities.

Coco Salazar is an associate editor and staff writer for

next story

back to current headlines

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts