source:
  type: guide
  id: hud-4000-1-ii-b-allowable-loan-parameters-2
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Allowable
    Loan Parameters (03/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Allowable
    Loan Parameters (03/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-b-allowable-loan-parameters-2-full
  canonical_id: hud-4000-1-ii-b-allowable-loan-parameters-2-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Allowable
    Loan Parameters (03/29/2024)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Allowable
      Loan Parameters (03/29/2024)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'b. Allowable Loan Parameters (03/29/2024) i. Maximum Loan Amounts
      All Loans are subject to loan amount limits based on all of the following: •
      Nationwide Loan Limits; • Minimum Cash Investment (MCI); • Minimum Decision
      Credit Score limitations; • maximum Loan-to-Value (LTV); and • LTV calculation
      applicable to the transaction type. Unless explicitly stated for a transaction
      type, the loan limits apply to all property types and loan purposes. (A) Nationwide
      Loan Limits The final Loan amount must not exceed the loan limit set by HUD,
      which includes any portion of the Upfront Insurance Premium (UFIP) and Financeable
      Fees and Charges that are to be financed. The loan limits are available at Financing
      Manufactured (Mobile) Homes. Title I Manufactured Housing Nationwide Loan Limits
      are established in accordance with Title I Section 2(b) of the National Housing
      Act based upon loan type: II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E.
      Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1030
      Last Revised: 11/26/2025 • Manufactured Home Loan (Single-section), $105,532
      • Manufactured Home Loan (Multi-section), $193,719 • Combination Loan (Single-section),
      $148,909 • Combination Loan (Multi-section), $237,096 • Manufactured Home Lot
      Loan, $43,377 The Nationwide Loan Limits will be reviewed annually and adjusted
      accordingly. (B) Required Investment (1) Total Required Investment Total Required
      Investment refers to the amount the Borrower must contribute to the transaction
      including the Borrower’s downpayment and the Borrower-paid transaction costs.
      The Total Required Investment includes the MCI. (2) Minimum Cash Investment
      Minimum Cash Investment (MCI) refers to the Borrower’s contribution in cash
      or its equivalent required, which represents at least 5 percent of the total
      purchase price for a maximum LTV of 95 percent. The MCI for a Borrower with
      a credit score of 500 and below will be 10 percent of the total purchase price.
      When the credit report reflects that a score is not available from any of the
      three credit reporting agencies, and non-traditional underwriting demonstrates
      that the Borrower has satisfactory credit, then an MCI of at least 5 percent
      of the total purchase price is required. See Credit Requirements for credit
      report requirements. Credit Score Minimum Downpayment Maximum LTV Above 500
      5% 95% 500 and Below 10% 90% (C) LTV Limitations Based on Borrower’s Credit
      Score The Lender must review the credit report to determine the Borrower’s Minimum
      Decision Credit Score (MDCS). The MDCS will be used to determine the maximum
      insured financing available to a Borrower with traditional credit. The table
      below describes the relationship between the Borrower’s MDCS and the LTV ratio
      for which they are eligible. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1031 Last Revised: 11/26/2025 If the Borrower’s Minimum Decision Credit Score
      is... Then the maximum Loan-to- Value is... Above 500 95% 500 and below 90%
      (D) Calculating the Loan-to-Value The Lender must calculate the LTV to determine
      the maximum Base Loan Amount, which is the amount prior to adding in the Upfront
      Insurance Premium (UFIP). The Base Loan Amount may be increased by the financed
      UFIP amount, but must not exceed the Nationwide Loan Limits. The LTV is calculated
      according to the specific loan purpose. (E) Calculating the Maximum Loan Amount
      Purchase Transactions (1) Maximum Base Loan Amount for New Manufactured Home
      The maximum Base Loan Amount is determined by applying the LTV (95 percent or
      90 percent) to the sum of the following amounts: • 130 percent of the sum of
      the wholesale (base) price of the home plus eligible itemized options, including
      the charge for freight, as detailed on the Manufacturer’s Invoice; • sales tax
      to be paid by the Borrower, as detailed in the retail sales contract; • Dealer’s
      actual cost of transportation to the home site, set-up and anchoring, including
      the rental of wheels and axles (if not included in the freight charges); • Dealer’s
      actual cost for skirting, garage, carport, patio, or other appurtenance, and
      for purchase and installation of a central air conditioning system or heat pump
      (if not installed by the manufacturer); and • Financeable Fees and Charges.
      (2) Maximum Base Loan Amount for Existing Manufactured Home The maximum Base
      Loan Amount is determined by multiplying the appropriate LTV factor (95 percent
      or 90 percent) to the lesser of: • the appraised value of the home as described
      in the sales contract, including any Eligible Options and Accessories itemized
      in the sales contract or documented in the file; or • the purchase price of
      the home, including costs to the Borrower for all items described in the sales
      contract and any Eligible Options and Accessories as documented in the file.
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
      4. Manufactured Home Loan Program Handbook 4000.1 1032 Last Revised: 11/26/2025
      (3) Eligible Options or Costs Eligible options or costs include: • sales tax
      to be paid by the Borrower, as described in the sales contract; • actual costs
      of transportation to the home site, setup and anchoring, including the rental
      of wheels and axles (if home is being relocated); • actual cost for new skirting,
      garage, carport, patio, or other appurtenance, and for purchase and installation
      of a central air conditioning system or heat pump; • actual cost of running
      and connecting electric power lines to the home, but only for borrower-owned
      land; and • Financeable Fees and Charges in the Loan. (4) Ineligible Costs Ineligible
      costs cannot be financed into the loan amount. Ineligible costs include furniture,
      personal items (rugs, draperies, lamps, etc.), small appliances that are not
      part of the Property (toasters, TVs, etc.), and the purchase of wheels and axles.
      (F) Required Documentation for LTV Calculation The case binder must contain:
      • a summary page that itemizes the expenses and reflects calculations used to
      determine the LTV ratio; and • the supporting documents for itemized costs,
      as applicable: o sales contract; and o receipts or invoices to evidence actual
      cost of allowable items, when not reflected in the sales contract. ii. Loan
      Term (A) Minimum Loan Term The minimum loan term for all property types and
      purposes is six months. (B) Maximum Loan Term The maximum term is limited according
      to the type of Property secured. The maximum loan term for a single-unit Combination
      Loan may not exceed 20 years and 32 Days from the date of the Loan. The maximum
      loan term for a multi-unit Combination Loan may not exceed 25 years and 32 Days
      from the date of the Loan. Property Type Maximum Loan Term Manufactured Home
      20 years, plus 32 Days II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title
      I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1033 Last
      Revised: 11/26/2025 Property Type Maximum Loan Term Manufactured Home Lot 15
      years, plus 32 Days Single Unit Manufactured Home and Lot 20 years, plus 32
      Days Multi-Unit Manufactured Home and Lot 25 years, plus 32 Days iii. Loan Insurance
      Premiums FHA collects a UFIP and an annual insurance premium charge for eligible
      Loans originated under the FHA Title I Manufactured Home Loan program. (A) Upfront
      Insurance Premium (1) Upfront Insurance Premium Amount FHA’s Manufactured Home
      insurance program requires the payment of UFIP, which may be financed into the
      Loan. The UFIP is 2.25 percent of the Base Loan Amount. The UFIP charge may
      be financed into the Loan in full or in part, provided that the Total Loan Amount
      does not exceed the Nationwide Loan Limits. If all or part of the UFIP exceeds
      the Nationwide Loan Limits, the Borrower must pay the excess in cash. Unless
      otherwise stated in this section (Underwriting the Transaction), restrictions
      to loan amounts and LTVs are based upon the amount prior to the financing of
      the UFIP (Base Loan Amount). The Total Loan Amount may be increased by the financed
      UFIP amount. (2) Refund and Credit of Upfront Insurance Premium FHA will only
      refund the UFIP if a Loan is not endorsed for insurance. The refund will be
      returned to the Lender who must apply the refund to the principal balance of
      the subject Loan. (B) Annual Loan Insurance Premium The periodic loan insurance
      premium is an annual loan insurance premium that is payable monthly. The loan
      insurance premium charge is 1 percent of the remaining principal balance, based
      upon the Loan’s scheduled amortization. The loan insurance premium must be paid
      for the full term of the Loan unless the Loan is prepaid in full or the Lender
      files a claim with FHA. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E.
      Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1034
      Last Revised: 11/26/2025 (C) Lender Responsibilities (1) Insuring an Advance
      of Credit Manufactured Home Loans may be evidenced by advances of credit, such
      as retail sales installment contracts, in which the Borrower(s) agrees to pay
      the Dealer over a period of time. To insure an advance of credit as a Title
      I Loan, an FHA- approved Lender purchases the advance of credit. Because the
      Dealer is not eligible to insure such a Loan, Title I insurance charges cannot
      be included in the retail sales installment contract. (2) Passing Insurance
      Premiums to Borrower The UFIP and annual insurance premiums are obligations
      of the Lender. The Lender may pass the premium charges on to the Borrower, provided
      that such charges are fully disclosed. To pass the obligation to pay UFIP and
      annual insurance premiums to the Borrower, the Lender must obtain a signed agreement
      from the Borrower in which the Borrower agrees to: • an increase in the principal
      amount of the Loan from what is shown on the retail sales installment contract
      to an amount that includes both the principal amount on the retail sales installment
      contract and the amount of the financeable upfront insurance charge; • pay the
      Lender for any portion of the upfront insurance charge that cannot be financed;
      and • pay the Lender for the monthly insurance charge (1/12th of the annual
      premium) in addition to the monthly Loan Payment set in the retail sales installment
      contract. Lenders are free to adopt any method that does not violate applicable
      law, but FHA suggests that the agreement be effectuated by a rider to the retail
      installment sales contract, if applicable. The rider must be executed by all
      Borrowers on the Loan at the same time that the retail installment sales contract
      is executed. (D) Required Documentation (1) Borrower’s Agreement to Pay Loan
      Insurance Premiums The Lender’s file must contain the Borrower’s agreement to
      pay loan insurance premiums. The agreement may be effectuated through the form
      of a rider to the retail installment contract or other method, and must be signed
      by all Borrowers. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title
      I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1035 Last
      Revised: 11/26/2025 (2) Rider for Insurance Premiums Loans originated by Dealers
      must have the Borrower execute a rider for loan insurance premiums, which authorizes
      the Lender to charge the Borrower for the charges. (3) Suggested Language for
      Rider for Insurance Premiums FHA does not supply a form for the rider. Lenders
      may use the suggested language as follows on their letterhead. The form must
      be signed by all Borrowers obligated on the Loan. RIDER – UPFRONT INSURANCE
      PREMIUM This rider is made this ____ day of ____________, and is incorporated
      into and shall be deemed to amend and supplement the retail installment sales
      contract of the same date given by the undersigned borrower(s) to (insert name
      of dealer) to finance the purchase of (insert description of the manufactured
      home). The loan to whom this retail installment sales contract (the loan) has
      been assigned will be insured against loss in the event of a borrower default
      by the Federal Housing Administration (FHA) of the U.S. Department of Housing
      and Urban Development (HUD). FHA charges the lender an upfront insurance premium
      at the time the loan is insured and annual premiums during the term of the loan.
      The lender is authorized by FHA to collect such premiums from the borrower(s),
      and this rider constitutes the consent of the borrower(s) to reimburse the lender
      for such premiums, as follows: CHECK APPLICABLE BOXES Upfront Insurance Premium
      Fully Financed. The upfront premium is (insert number) percent of $ ___________,
      the amount financed shown on the face of the retail sale installment contract,
      which equals $(insert number). The upfront premium, when added to the amount
      financed, results in a new amount financed that is equal to or less than FHA’s
      maximum loan amount, and therefore the upfront premium is financed in its entirety
      with this lender. The new amount financed is $(insert original amount financed
      + upfront premium). This results in an increased monthly payment. The revised
      monthly payment is $(insert new amount). Upfront Insurance is Partially Financed.
      The upfront premium is (insert number) percent of $___________, the amount financed
      shown on the face of the retail sale installment contract, which equals $(insert
      number). The upfront premium, when added to the amount financed, results in
      a new amount financed that exceeds FHA’s maximum loan amount, and II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured
      Home Loan Program Handbook 4000.1 1036 Last Revised: 11/26/2025 therefore the
      upfront premium is partially financed with this lender, to the extent that it
      results in a new amount financed equal to the FHA maximum loan amount. Borrower(s)
      will pay the lender the balance of the upfront premium... The new amount financed
      is $(insert original amount financed + financeable amount of upfront premium).
      As a result of the increase in the amount financed, the monthly payment is $(insert
      new amount). Upfront Insurance Cannot be Financed. The upfront premium is (insert
      number) percent of $___________, the amount financed shown on the face of the
      retail sale installment contract, which equals $(insert number). The upfront
      premium cannot be financed because the amount financed is equal to FHA’s maximum
      loan amount. Borrower(s) will pay the lender the upfront premium. Annual Premium
      Cannot be Financed The annual premiums are based upon the declining balance
      of the original amount financed, and thus will change every year. Borrower(s)
      will pay 1/12 of each annual premium each month in addition to the monthly loan
      payment set forth in paragraph (a). The initial monthly premium payment is $(insert
      number). The lender will advise the borrower(s) of each annual change in the
      monthly premium payment.'
  judgment: false
