The Federal Housing Administration (FHA) recently announced an increase in loan limits for its Title I Manufactured Home Loan Program, utilizing new methodologies for calculating and updating these limits. This announcement, made in conjunction with a final rule published on February 29, 2024, is aimed at more accurately reflecting current market prices to encourage lenders to offer the program to potential homebuyers interested in purchasing manufactured homes and their corresponding lots. This marks the first update to the loan limits of the Title I program since 2008 and is part of the Biden-Harris Administration’s efforts to boost the supply and utilization of manufactured homes as an affordable housing solution.
HUD Secretary Marcia L. Fudge expressed the administration’s commitment to leveraging every available tool to ensure affordable housing for all Americans, viewing this update as a significant step forward in addressing the affordable housing supply crisis through the promotion of manufactured homes. Federal Housing Commissioner Julia R. Gordon highlighted the critical nature of updating the Title I loan limits as a means to make the program more accessible and appealing to lenders and homebuyers, for whom manufactured housing represents an affordable housing option.
The new loan limits, effective for FHA case numbers assigned on or after March 29, 2024, are set as follows: $148,909 for a Combination Loan (Single-section), $237,096 for a Combination Loan (Multi-section), $105,532 for a Manufactured Home Loan (Single-section), $193,719 for a Manufactured Home Loan (Multi-section), and $43,377 for a Manufactured Home Lot Loan. These limits will be recalculated annually by the FHA to remain aligned with fluctuations in home prices over time.
Furthermore, last month, HUD introduced a pioneering $225 million funding opportunity designed to enhance the affordability of manufactured homes and communities, underscoring the administration’s ongoing commitment to expanding affordable housing options.
For the full details and insights, please refer to the original press release at the following link: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_24_055