source:
  type: guide
  id: hud-4000-1-ii-b-dealer-loan-2
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Dealer
    Loan (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Dealer
    Loan (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-b-dealer-loan-2-full
  canonical_id: hud-4000-1-ii-b-dealer-loan-2-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Dealer Loan
    (05/09/2022)
  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. Dealer
      Loan (05/09/2022)
    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. Dealer Loan (05/09/2022) i. Definition A Dealer Loan refers
      to a Loan where a Dealer assists the Borrower in preparing the credit application
      or otherwise assists the Borrower in obtaining the Loan from the Lender. This
      may include completing the loan application for the Borrower, and II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 3. Direct and Dealer
      Loan Process for Manufactured Home Loan Program Handbook 4000.1 999 Last Revised:
      11/26/2025 collecting any other documentation or information as required by
      the Lender that is necessary to support the lending decision. When a Dealer
      does not assist the Borrower in obtaining the Loan from the Lender, then the
      transaction is not considered a Dealer Loan. ii. Standard The Dealer may assist
      the Borrower in obtaining the Loan from the Lender. This may include completing
      the loan application for the Borrower, and collecting any other documentation
      or information as required by the Lender that is necessary to support the lending
      decision. To facilitate the sale of Manufactured Homes, the Dealer may enter
      into a Business Relationship with an FHA Title I approved Lender that will provide
      financing to the home purchaser. The Dealer and Title I Lender may agree to
      require partial or full recourse in a provision in the loan documents against
      the Dealer to reduce or eliminate the Lender’s loss in the event of foreclosure
      or repossession. Recourse provisions are subject to the requirements described
      in Recourse from Dealer. The loan documents may provide for partial or full
      recourse against the Dealer, and must comply with requirements described in
      Recourse from Dealer. iii. Dealer Approval and Monitoring The Lender is responsible
      for approving Dealers prior to the Dealer’s participation in the Dealer Loan
      process. The Lender must complete an investigation of the Dealer and document
      the findings for approval before the Dealer may begin originating Title I Loans
      through the Lender. (A) General Criteria Each Dealer must demonstrate previous
      business experience in manufactured home retail sales. The Lender must evaluate
      the Dealer on the basis of experience and approve only those Dealers that the
      Lender considers to be reliable, financially responsible, and qualified to satisfactorily
      perform their contractual obligations. At a minimum, each Dealer must comply
      with the following requirements for Dealer approval. (1) Dealer Eligibility
      for Participation in HUD Programs The Lender must verify that the Dealer and
      the Principal Owners of the dealership are not excluded from participation in
      federal government programs and document the results of their review. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 3. Direct and Dealer
      Loan Process for Manufactured Home Loan Program Handbook 4000.1 1000 Last Revised:
      11/26/2025 The Lender may not contract with entities or persons that are suspended,
      debarred, or otherwise excluded from participation in HUD programs, or under
      a Limited Denial of Participation (LDP) that excludes their participation in
      FHA programs. The Lender must ensure that no TPO or contractor engages such
      an entity or person to perform any function relating to the origination of an
      FHA- insured Loan. The Lender must check the System for Award Management (SAM)
      and the Credit Alert Verification Reporting System (CAIVRS) and must follow
      appropriate procedures defined by that system to confirm eligibility for participation.
      The Dealer, if the Dealer is acting as a Lender, must comply with all laws,
      rules, and requirements applicable to the loan transaction, including full compliance
      with the Consumer Financial Protection Bureau (CFPB). (2) Net Worth Requirement
      A Dealer must have and maintain a net worth of not less than $63,000 in assets
      acceptable to HUD. The following asset types and sources are not eligible for
      inclusion toward the minimum net worth: • any assets of the Dealer that are
      pledged to secure obligations of another person or entity; • any asset due from
      either officers or stockholders of the Dealer or related entities, in which
      the Dealer’s officers and stockholders have a personal interest (unrelated to
      their position as an officer or stockholder). “Personal interest” refers to
      a relationship between the Dealer and a person or entity in which that specified
      person (e.g., spouse, parent, grandparent, child, brother, sister, aunt, uncle,
      or in-law) has a financial interest in or is employed in a management position
      by the Dealer; • any investment in related entities in which the Dealer’s officers
      or stockholders have a personal interest unrelated to their position as an officer
      or stockholder for the Dealer; • that portion of an investment in joint ventures,
      subsidiaries, Affiliates and/or other related entities which is carried at a
      value greater than equity, as adjusted. “Equity as adjusted” means the book
      value on the books of the related entity reduced by the amount of unacceptable
      assets carried by the related entity; • all intangibles, such as goodwill, covenants
      not to compete, franchisee fees, organization costs, etc., except unamortized
      servicing costs carried at a value established by an Arm’s Length Transaction
      and presented in accordance with Generally Accepted Accounting Principles (GAAP);
      • that portion of an asset not readily marketable, and for which appraised values
      are very subjective, carried at a value in excess of a substantially discounted
      appraised value; and II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title
      I Insured Programs 3. Direct and Dealer Loan Process for Manufactured Home Loan
      Program Handbook 4000.1 1001 Last Revised: 11/26/2025 • any asset which is principally
      used for the personal enjoyment of an officer or stockholder and not for normal
      business purposes. (3) Resale Agreements As a condition of approval, a Lender
      may require a Dealer to execute a written resale agreement. If a Loan originated
      by the Dealer results in the repossession of the Manufactured Home, the agreement
      would require the Dealer to assist the Lender in reselling the Manufactured
      Home, if requested by the Lender. (B) Approval Procedure for the Dealer Lenders
      must follow the procedures listed below to approve a Dealer to participate in
      the Title I Manufactured Home Loan program. (1) Application Form A prospective
      Dealer must complete form HUD-55013, Dealer/Contractor Application: Title I
      Property Improvement and Manufactured Home Loans. The Lender must retain form
      HUD-55013 and all supporting documentation in its dealer file for each Dealer.
      (2) Financial Statement The Lender must obtain and review the Dealer’s most
      recent annual financial statement(s) to confirm that the Dealer meets HUD’s
      net worth requirement. The financial statement must have been prepared by a
      Certified Public Accountant (CPA) or a licensed public accountant. If the annual
      financial statement provided at application is more than six months old, the
      Lender must also obtain and review the Dealer’s current Profit and Loss (P&L)
      statement and balance sheet to verify that the Dealer’s net worth is sufficient.
      (3) Dealer Credit Report The Lender must obtain and evaluate a commercial credit
      report on the dealership. The Lender must also obtain and evaluate an individual
      credit report on the Principal Owner(s) of the dealership to ensure that the
      owner(s) does not exhibit a disregard for credit. (4) Documentation of Approval
      Upon completion of the Lender’s thorough review and investigation of a Dealer,
      an authorized official of the Lender must sign the bottom of form HUD-55013
      to document the Lender’s decision to approve the Dealer. The Lender must retain
      the approved application and all supporting documentation obtained during the
      application review. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title
      I Insured Programs 3. Direct and Dealer Loan Process for Manufactured Home Loan
      Program Handbook 4000.1 1002 Last Revised: 11/26/2025 (5) Annual Renewal A Dealer
      is approved for a period of one year. To be re-approved, a Dealer must provide
      the Lender with a new form HUD-55013 and its most recent financial statement.
      In addition to the steps outlined above for the initial approval, the Lender
      must also evaluate its experience with the Dealer during the prior year. This
      evaluation must address performance factors such as: • the Dealer’s approval
      and rejection rates; • the collection history for Loans purchased from the Dealer;
      and • the Dealer’s complaint resolution practices. (C) Monitoring the Dealer
      In addition to the initial and annual dealer approval reviews, a Lender must
      monitor each approved Dealer’s activities with respect to Loans insured by HUD
      on an ongoing basis. The Lender must take prompt action to resolve any dealer
      deficiencies discovered. A Lender’s monitoring of Dealers must include the following.
      (1) Quality of Borrower Applicants The Lender must monitor the quality of applicants
      submitted by the Dealer. If a Dealer’s rejection rate is too high, the Lender
      should meet with the Dealer to review the Dealer’s marketing and borrower qualification
      practices. (2) Loan Documentation Quality The Lender must monitor the quality
      and completeness of the loan documentation submitted by the Dealer. (3) Dealer
      Advertising The Lender must monitor dealer advertising and other marketing material
      to ensure against misleading or false claims. Of particular concern is advertising
      that uses “Federal Housing Administration,” “Department of Housing and Urban
      Development,” “FHA,” or “HUD” to convey the impression that the Dealer has a
      special relationship with the federal government. Other prohibited marketing
      practices include material that states or implies that it is an official government
      notice, Title I is a grant program, Title I provides Special Benefits for a
      particular area or group, government funding for the program is limited in amount
      or for a limited time period, the Borrowers are pre-approved, poor credit is
      acceptable, HUD approved the Dealer, or the loan funds can be used for debt
      consolidation. Copies of dealer advertisements and other marketing materials
      issued by the Dealer must be maintained in the Dealer’s file with the other
      required documents. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title
      I Insured Programs 3. Direct and Dealer Loan Process for Manufactured Home Loan
      Program Handbook 4000.1 1003 Last Revised: 11/26/2025 Special Benefits refer
      to benefits other than volume incentives for Dealers which a home manufacturer
      funds from general corporate revenues by charging them against corporate overhead
      and profit without changing the wholesale (base) price of a Manufactured Home
      (or series of homes), as reflected in the manufacturer’s published wholesale
      (base) price list, and which are limited to payments by the manufacturer directly
      to: • a financial institution to buy down or reduce the interest rate, Discount
      Points, or other fees or charges related to a lending agreement for a Dealer’s
      manufactured home inventory or floor plan financing needs; or • one or more
      advertising media for all or part of the costs of advertising the manufacturer’s
      homes, one or more Dealer’s services, and related manufactured home materials
      and products in such media. (4) Monitor Complaints The Lender must monitor complaints
      received on Loans originated by the Dealer. Documentation for all complaints
      and their resolution must be maintained in the Dealer’s file. Particular attention
      should be focused on the quality of service offered, whether warranties are
      honored in a timely manner, and the general manner in which the Dealer resolves
      complaints and conducts their business. (5) Prohibition of Kickbacks and other
      Irregularities All credible allegations of irregularities (kickbacks, false
      statements, etc.) must be promptly reported to either HUD’s QAD or to HUD’s
      Office of the Inspector General (OIG). All referrals to the OIG should be made
      to the OIG Hotline’s call center at 1-800-347-3735 or via the OIG Hotline’s
      website at www.hudoig.gov/hotline. (6) Material Changes of Dealer A Lender is
      responsible for monitoring each Dealer, including any material change in their
      trade name, places of business, type of ownership, type of business, or principal
      individuals who control or manage the business. Upon discovery of any material
      change, the Lender must determine that the eligibility of the Dealer has not
      changed. (7) Maintain Dealer Files The Lender is to maintain a separate file
      for each approved Dealer. The file is to include the initial application and
      documentation used for approval and any information regarding the Lender’s experience
      with Title I Loans involving the Dealer. Each file must consist of information
      regarding borrower Default rates, records of inspections of homes delivered
      and installed by the Dealer, copies of letters concerning borrower complaints
      and their resolution, material changes, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1004 Last Revised: 11/26/2025 copies of dealer advertisements and other marketing
      materials, and records of the Lender’s visits to the Dealer’s premises. (8)
      Termination of the Dealer A Dealer’s approval will be terminated if a Dealer
      does not satisfactorily perform its contractual obligations to Borrowers, does
      not comply with Title I program requirements, or is unresponsive to inquiries
      pertaining to lender supervision and monitoring requirements. The Lender is
      required to notify HUD immediately with written documentation of the reason(s)
      for termination. A Dealer whose approval is terminated as a result of these
      circumstances may not be re-approved by a Lender without prior written approval
      from HUD. Notices of termination for cause and requests for permission to re-approve
      a terminated Dealer must be in writing and sent to: U.S. Department of Housing
      and Urban Development Quality Assurance Division 451 Seventh St., SW Washington,
      DC 20410 A Lender may, at its discretion, terminate the approval of a Dealer
      for other reasons at any time. 4. Manufactured Home Loan Program The Title I
      Manufactured Home Loan Program, Origination/Processing through Post- closing/Endorsement
      sections in this FHA Single Family Housing Policy Handbook (Handbook 4000.1)
      is applicable to all Manufactured Home Loans insured under Title I of the National
      Housing Act. The Lender must fully comply with all of the following standards
      and procedures for obtaining Federal Housing Administration (FHA) insurance
      on a Loan. If there are any exceptions or program-specific standards or procedures
      that differ from those set forth below, the exceptions or alternative program
      or product specific standards and procedures are explicitly stated. Terms and
      acronyms used in this Handbook 4000.1 have their meanings defined in the Glossary
      and Acronyms and in the specific section of Handbook 4000.1 in which the definitions
      are located. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured
      Programs 4. Manufactured Home Loan Program Handbook 4000.1 1005 Last Revised:
      11/26/2025'
  judgment: false
