Mortgage Insurance_Manufactured Home Parks

To make possible the financing of construction or rehabilitation of manufactured home parks.

Agency - Department of Housing and Urban Development

The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.

Office - All projects are processed in Local HUD Multifamily Hubs or Program Centers.

Persons are encouraged to communicate with the nearest HUD Multifamily Hub or Program Center listed at or in the Catalog Appendix IV.

Program Accomplishments

In Fiscal Year 2007, HUD did not insure any projects under this program. It is estimated that no mortgages will be insured under this program in Fiscal Year 2008.

Uses and Use Restrictions

The Department's Federal Housing Administration (FHA) insures lenders against loss on mortgage defaults.

Insured mortgages may be used to finance the construction or rehabilitation of manufactured home parks consisting of 5 or more spaces.

The maximum mortgage limit is $11,250 per space.

In areas where cost levels so require, limits may be increased up to 140 percent on a case-by-case basis.

Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act.

Eligibility Requirements

Applicant Eligibility

Eligible mortgagors include investors, builders, developers and others who meet HUD requirements for mortgagors.

Beneficiary Eligibility

Families, individuals, and elderly persons owning manufactured homes and desiring to lease spaces in a manufactured home park.


Documentation regarding the characteristics of the property and the qualifications of the mortgagor are submitted with the application. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

The sponsor has an initial conference with the local HUD Multifamily Hub or Program Center to determine the preliminary feasibility of the project before a Site Appraisal and Market Analysis (SAMA) application (for new construction projects or feasibility application (for substantial rehabilitation projects) is submitted.

This program is excluded from coverage under OMB Circular No.


An environmental assessment is required for this program.

This program is eligible for coverage under E.O.

12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

The sponsor submits a site appraisal and market analysis (SAMA) for new construction projects or a feasibility application for substantial rehabilitation projects. Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing. Considerations include market need, zoning, capabilities of the borrower, and availability of community resources. Applications are submitted to the local HUD Multifamily Hub Program Center which does multifamily processing. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedures

The HUD Multifamily Hub or Program Center decides whether to approve or reject applications.


Deadlines are established on a case-by-case basis by the local HUD Multifamily Hub or Program Center.


National Housing Act, as amended, Section 207, Public Law 84-345, 12 U.S.C. 1713.

Range of Approval/Disapproval Time

Processing time will depend upon the degree of preparation by the sponsor and by the workload of the HUD Field Office.


If an application for mortgage insurance is refused, HUD will state the reasons for the refusal. If reapplication is desired, the applicant may reapply subject to concurrence of the lender.


The term of a commitment to insure may be extended when more time is required.

Assistance Considerations

Formula and Matching Requirements

The maximum amount of the loan may not exceed 90 percent of the estimated value. The mortgage insurance premium is based on the mortgage amount. The application fee is $3 per $1,000. The HUD-inspection fee may not exceed $5 per $1,000 of the mortgage amount.

Length and Time Phasing of Assistance

The maximum mortgage term is 40 years, or not in excess of three-fourths of the remaining economic life, whichever is less.

Post Assistance Requirements


Any change of the mortgagor during the period of mortgage insurance must be approved by HUD.

Defaults in meeting the mortgage terms must be reported.

All mortgagors are required to submit an annual financial statement to HUD.

All approved mortgagees at any time upon request by HUD must furnish copies of their latest financial statements.


The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor to determine their compliance and conformance with HUD regulations and standards.


Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.

Financial Information

Account Identification



(Mortgages insured) Reported under program 14.135.

Range and Average of Financial Assistance

Loan sizes range from $1,890,000 to $7,830,000, with an average of $4.5 million. Project sizes range from 84 units to 337 units with an average of 175 units.

Regulations, Guidelines, and Literature

Fact Sheet, Manufactured Home Parks; 24 CFR 207.33 et seq.; Mobile Home Parks Financing, no charge; Housing Surveys, Part II; HUD Handbook 4545.1, Mobile Home Park Program, no charge, available on HUDCLIPS at

Information Contacts

Regional or Local Office

All projects are processed in Local HUD Multifamily Hubs or Program Centers. Persons are encouraged to communicate with the nearest HUD Multifamily Hub or Program Center listed at or in the Catalog Appendix IV.

Headquarters Office

Office of Multifamily Development, Department of Housing and Urban Development, 451 7th Street, S. W., Washington, DC 20410. Telephone: (202) 708-1142. Use the same number for FTS.

Criteria for Selecting Proposals

Not applicable.

Social Entrepreneurship

Rwanda as Social Entrepreneur Fund Beneficiary

The Republic of Rwanda has been picked as one of the six African countries as beneficiaries for a new fellowship fund program designed at supporting social entrepreneurs in tackling issues on food security.

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