source:
  type: guide
  id: hud-4000-1-ii-a-origination-processing-2
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Origination/Processing
    (05/25/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Origination/Processing
    (05/25/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-a-origination-processing-2-full
  canonical_id: hud-4000-1-ii-a-origination-processing-2-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Origination/Processing
    (05/25/2025)
  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 — a. Origination/Processing
      (05/25/2025)
    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: 'a. Origination/Processing (05/25/2025) i. Application Packages
      and Disclosures (A) Borrower Eligibility (1) Definition Borrower refers to one
      who applies for and receives a Loan insured under this part. The term may also
      include any co-maker or Co-signer or any assumptor who is obligated for the
      repayment of a loan obligation insured under this part. (2) Contents of the
      Loan Application Package The Lender must maintain all information and documentation
      that is relevant to its approval decision in the case binder. All information
      and documentation that is required in this Handbook 4000.1, and any incidental
      information or documentation related to these requirements, is relevant to the
      Lender’s approval decision. If, after obtaining all documentation required below,
      the Lender has reason to believe it needs additional support for the approval
      decision, the Lender must obtain additional explanation and documentation, consistent
      with information in the case binder, to clarify or supplement the information
      and documentation submitted by the Borrower. (a) Maximum Age of Loan Application
      Documents Documents used in the origination and underwriting of a Loan may not
      be more than 120 Days old at the Disbursement Date. Only documents whose validity
      for underwriting purposes is not affected by the passage of time, such as divorce
      decrees or Tax Returns, may be more than 120 Days old at the Disbursement Date.
      For counting purposes, Day one is the Day after the effective or issue date
      of the document, whichever is later. Appraisal Validity The 120-Day age limit
      applies to a property appraisal conducted in connection with loan origination.
      See Appraisals. The 120-Day validity period may be extended for 30 Days at the
      option of the Lender if needed during loan origination, pre-closing review,
      or claim processes. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title
      I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1006 Last
      Revised: 11/26/2025 (b) Handling of Documents Lenders, including sponsored TPOs,
      must not accept or use documents relating to the employment, income, assets,
      or credit of Borrowers that have been handled by, or transmitted from or through,
      the equipment of unknown or Interested Parties, including the Borrower, the
      Dealer or its agent, or sponsored TPOs. The documents referred to in this section
      are Lender-generated direct verification documents, which are used to verify
      and supplement documentation submitted by the Borrower at application. These
      verifications are to be sent directly from the Lender to the requested responder
      to obtain independent, written verification of employment, income, rent, or
      financial accounts. (i) Information Sent to the Lender Electronically The Lender
      must authenticate all documents received electronically by examining the source
      identifiers (e.g., fax banner header or the sender’s email address) and contacting
      the source by telephone to verify the document’s validity. The Lender must document
      the name and telephone number of the individual with whom the Lender verified
      the validity of the document. (ii) Information Obtained via Internet The Lender
      must authenticate documents obtained from an Internet website and examine portions
      of printouts downloaded from the Internet including the Uniform Resource Locator
      (URL) address, as well as the date and time the documents were printed. The
      Lender must verify that the website exists. Documentation obtained through the
      Internet must contain the same information as would be found in an original
      hard copy of the document. (iii)Confidentiality Policy for Credit Information
      Lenders must not divulge sources of credit information, except as required by
      a contract or by law. All personnel with access to credit information must ensure
      that the use and disclosure of information from a credit report complies with:
      • Fair Housing Act, 42 U.S.C. §§ 3601–3619; • the Fair Credit Reporting Act
      (FCRA), Public Law 91-508; • the Privacy Act, Public Law 93-579; • the Financial
      Privacy Act, Public Law 95-630; and II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1007 Last Revised: 11/26/2025 • the Equal Credit Opportunity Act (ECOA), Public
      Law 94-239 and 12 CFR Part 202. (c) Signature Requirements for All Application
      Forms All Borrowers must sign and date Fannie Mae Form 1003/Freddie Mac Form
      65, Uniform Residential Loan Application (URLA), and form HUD-92900-TI, HUD
      Addendum to the Uniform Residential Loan Application for Title I Loans. (i)
      The application may not be signed by any party who will not be on the Note.
      (ii) A Power of Attorney (POA) may not be used unless the Lender verifies and
      documents that all of the following requirements have been satisfied: • For
      military personnel, a POA may only be used when all of the following apply:
      o when the service member is on overseas duty or on an unaccompanied tour; o
      when the Lender is unable to obtain the absent Borrower’s signature on the application
      by mail or fax; and o where the attorney-in-fact has specific authority to encumber
      the Property and to obligate the Borrower. • For incapacitated Borrowers, a
      POA may only be used: o where a Borrower is incapacitated and unable to sign
      the loan application; and o where the attorney-in-fact has specific authority
      to encumber the Property and to obligate the Borrower. (d) Prohibition on Documents
      Signed in Blank Lenders are not permitted to have Borrowers sign documents in
      blank, incomplete documents, or blank sheets of paper. (e) Policy on Use of
      Electronic Signatures (i) Definition An Electronic Signature refers to any electronic
      sound, symbol, or process attached to or logically associated with a contract
      or record and executed or adopted by a person with the intent to sign the record.
      FHA does not accept an electronic signature that is solely voice or audio. Digital
      signatures are a subset of electronic signatures. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1008 Last Revised: 11/26/2025 (ii) Use of Electronic Signatures An electronic
      signature conducted in accordance with the Electronic Signature Performance
      Standards (Performance Standards) is accepted on FHA documents requiring signatures
      to be included in the case binder for loan insurance, unless otherwise prohibited
      by law. Electronic signatures meeting the Performance Standards are treated
      as equivalent to handwritten signatures. (iii)Electronic Signature Performance
      Standards The Performance Standards are the set of guidelines that govern FHA
      acceptance of an electronic signature. The use of electronic signatures is voluntary.
      However, Lenders choosing to use electronic signatures must fully comply with
      the Performance Standards. The Electronic Signatures in Global and National
      Commerce Act (ESIGN Act) Compliance and Technology A Lender’s electronic signature
      technology must comply with all requirements of the ESIGN Act, including those
      relating to disclosures, consent, signature, presentation, delivery, retention
      and any state law applicable to the transaction. Third Party Documents Third
      Party Documents refer to those documents that are originated and signed outside
      of the control of the Lender, such as the sales contract. FHA will accept electronic
      signatures on Third Party Documents included in the case binder for loan insurance
      endorsement in accordance with the ESIGN Act and the Uniform Electronic Transactions
      Act (UETA). An indication of the electronic signature and date should be clearly
      visible when viewed electronically and in a paper copy of the electronically
      signed document. Authorized Documents Authorized Documents refer to the documents
      on which FHA accepts electronic signatures provided that the Lender complies
      with the Performance Standards. • Loan Insurance Endorsement Documents: Electronic
      signatures will be accepted on all documents requiring signatures included in
      the case binder for loan insurance. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1009 Last Revised: 11/26/2025 • Servicing and Loss Mitigation Documentation:
      Electronic signatures will be accepted on any documents associated with servicing
      or loss mitigation services for FHA-insured Loans. • FHA Insurance Claim Documentation:
      Electronic signatures will be accepted on any documents associated with the
      filing of a claim for FHA insurance benefits, including form HUD-637, Title
      I Claim for Loss. Associating an Electronic Signature with the Authorized Document
      The Lender must ensure that the process for electronically signing authorized
      documents provide for the document to be presented to the signatory before an
      electronic signature is obtained. The Lender must ensure that the electronic
      signature is attached to, or logically associated with, the document that has
      been electronically signed. Intent to Sign The Lender must be able to prove
      that the signer certified that the document is true, accurate, and correct at
      the time signed. Electronic signatures are only valid under the ESIGN Act if
      they are “executed or adopted by a person with the intent to sign the record.”
      Establishing intent includes: • identifying the purpose for the Borrower signing
      the electronic record; • being reasonably certain that the Borrower knows which
      electronic record is being signed; and • providing notice to the Borrower that
      their electronic signature is about to be applied to, or associated with, the
      electronic record. Intent to use an electronic signature may be established
      by, but is not limited to: • an online dialog box or alert advising the Borrower
      that continuing the process will result in an electronic signature; • an online
      dialog box or alert indicating that an electronic signature has just been created
      and giving the Borrower an opportunity to confirm or cancel the signature; or
      • a click-through agreement advising the Borrower that continuing the process
      will result in an electronic signature. Single Use of Signature Lenders must
      require a separate action by the signer, evidencing intent to sign, in each
      location where a signature or initials are to be applied. II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan
      Program Handbook 4000.1 1010 Last Revised: 11/26/2025 This provision does not
      apply to documents signed by Lender employees or Lender contractors provided
      the Lender obtains the consent of the individual for the use of their electronic
      signature. The Lender must document the Borrower’s consent. Authentication -
      Definition Authentication refers to the process used to confirm a signer’s identity
      as a party in a transaction. Authentication - Standard Before a Lender reports
      the Loan for insurance, the Lender must confirm the identity of the signer by
      authenticating data provided by the signer with information maintained by an
      independent source. Independent sources include, but are not limited to: • national
      commercial credit bureaus; • commercially available data sources or services;
      • state motor vehicle agencies; or • government databases. The Lender must verify
      a signer’s name and date of birth, and either their Social Security Number (SSN)
      or driver’s license number. Attribution - Definition Attribution is the process
      of associating the identity of a signer with their signature. Attribution -
      Standard The Lender must maintain evidence sufficient to establish that the
      electronic signature may be attributed to the individual purported to have signed.
      The Lender must use one of the following methods, or combinations of methods,
      to establish attribution: • selection by or assignment to the individual of
      a Personal Identification Number (PIN), password, or other shared secret, that
      the individual uses as part of the signature process; • delivery of a credential
      to the individual by a trusted third party, used either to sign electronically
      or to prevent undetected alteration after the electronic signature using another
      method; • knowledge base authentication using “out of band/wallet” information;
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
      4. Manufactured Home Loan Program Handbook 4000.1 1011 Last Revised: 11/26/2025
      • measurement of some unique biometric attribute of the individual and creation
      of a computer file that represents the measurement, together with procedures
      to protect against disclosure of the associated computer file to unauthorized
      parties; or • public key cryptography. Credential Loss Management Lenders must
      have a system in place to ensure the security of all issued credentials. One
      or a combination of the following loss management controls is acceptable: •
      maintaining the uniqueness of each combined identification code and password,
      such that no two individuals have the same combination of identification code
      and password; • ensuring that identification code and password issuances are
      periodically checked, recalled, or revised; • following loss management procedures
      to electronically deauthorize lost, stolen, missing, or otherwise compromised
      identification code or password information, and to issue temporary or permanent
      replacements using suitable, rigorous controls; • using transaction safeguards
      to prevent unauthorized use of passwords or identification codes; or • detecting
      and reporting any attempts at unauthorized use of the password or identification
      code to the system security unit. (f) Required Documentation and Integrity of
      Records Lenders must ensure that they employ industry-standard encryption to
      protect the signer’s signature and the integrity of the documents to which it
      is affixed. Lenders must ensure that their systems will detect and record any
      tampering with the electronically signed documents. FHA will not accept documents
      that show evidence of tampering. If changes to the document are made, the electronic
      process must be designed to provide an “audit trail” showing all alterations,
      the date and time they were made, and identify who made them. The Lender’s system
      must be designed so that the signed document is designated as the Authoritative
      Copy. The Authoritative Copy of an electronically signed document refers to
      the electronic record that is designated by the Lender or holder as the controlling
      reference copy. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I
      Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1012 Last
      Revised: 11/26/2025 (3) Credit Application and Initial Supporting Documentation
      The Lender must obtain a completed URLA (Fannie Mae Form 1003/Freddie Mac Form
      65), form HUD-92900-TI, and a Notice to Borrower of HUD’s Role in Title I Loans
      from the Borrower prior to completion of the underwriting process. (a) Interview
      with Borrower The Lender must conduct a telephone or face-to-face interview
      with the Borrower and any co-maker or Co-signer to resolve any material discrepancies,
      and ensure that the information, including listed debts and obligations, is
      accurate and complete. (b) Dealer Certification Dealers who participate in the
      Borrower’s purchase of a Manufactured Home must sign the certification on the
      last page of form HUD-92900-TI. (c) Credit Application Name Requirements (i)
      Standard All credit applications must be executed in the legal names of one
      or more individuals on the application. Credit applications from a corporation,
      partnership, sole proprietorship, nonprofit or trust (including living or non-revocable
      trusts) are not permitted under Title I. (ii) Required Documentation The Lender
      must include a statement that it has verified the Borrower’s identity using
      a valid government-issued photo identification at or prior to closing the Loan,
      or the Lender may choose to include a copy of such photo identification as documentation.
      (4) Borrower’s Authorization The Lender must obtain the Borrower’s authorization
      to verify the information needed to process the loan application. (5) Borrower’s
      Authorization for Use of Information Protected under the Privacy Act (a) Standard
      The Lender must obtain the Borrower’s consent for use of the Borrower’s information
      for any purpose relating to the origination, servicing, loss II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured
      Home Loan Program Handbook 4000.1 1013 Last Revised: 11/26/2025 mitigation,
      and disposition of the Loan or, if applicable, the Property securing the Loan,
      and relating to any insurance claim and ultimate resolution of such claims by
      the Lender and FHA. (b) Required Documentation The Lender must obtain a signed
      statement from the Borrower that clearly expresses the Borrower’s consent for
      the use of the Borrower’s information as required above. (6) Sales Contract
      and Required Documentation (a) Standard The Lender must not originate an insured
      Loan for the purchase of a Property if any provision of the sales contract violates
      FHA requirements. An addendum or modification may be used to remove or correct
      nonconforming provisions. The Lender must ensure (1) all purchasers listed on
      the sales contract are Borrowers, and (2) all Borrowers sign the sales contract.
      (b) Required Documentation The Lender must obtain a complete copy of the sales
      contract including any modifications or revisions agreed upon by buyer and seller.
      (c) Property Appraisal The Borrower must receive a copy of the property appraisal
      when an appraisal is required for FHA insurance endorsement. When an appraisal
      report is required, the Lender must give the Borrower a copy of the property
      appraisal report at least three Days prior to loan closing. A property appraisal
      is not required in connection with: • purchase of a New Manufactured Home; or
      • refinance of an FHA-insured Loan that secures a Manufactured Home. (B) Disclosures
      and Legal Compliance The Lender must provide or ensure the Borrower is provided
      with the following disclosure. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1014 Last Revised: 11/26/2025 (1) Notice to Borrower of HUD’s Role in Title
      I Loans (a) Standard The Lender must provide a written notice to clearly inform
      each Borrower that the Loan will be insured against Default by HUD and about
      the actions that HUD will take to collect the Loan if the Borrower defaults.
      This notice also serves to document the Borrower’s agreement to pay any penalties
      and administrative costs that may be assessed by HUD. (b) Required Documentation
      – Borrower Acknowledgment The Lender must have each Borrower sign a copy of
      the notice at loan application. The copy signed by the Borrower(s) must be retained
      in the case binder. (c) Required Documentation – Wording of the Notice The Lender
      must prepare the notice on the Lender’s letterhead. The notice must read as
      follows: You have applied for a manufactured home loan that is to be insured
      by the Department of Housing and Urban Development. If you fail to repay this
      lender as agreed, we may foreclose or repossess the home or other property securing
      this loan and sell it. It is important for you to understand that the value
      of the property at the time of repossession/foreclosure may be less than the
      unpaid balance on your loan, leaving you liable for the difference. After your
      property is sold, we may assign the remaining debt to HUD for collection. Failure
      to pay this debt to HUD may result in offset of Federal payments due you (including
      Federal income tax refunds, Social Security benefit payments, and Federal employee
      wages or retirement) or may result in the administrative garnishment of your
      wages. In addition, failure to pay may result in the referral of the debt for
      collection to the Department of Justice, to the Department of Treasury, or to
      private collection agencies. In addition to principal and interest on the debt,
      you will be liable for the payment of any penalties or administrative costs
      that may be imposed by HUD as authorized by Section 3717 to Title 31 of the
      United States Code. Your signature below indicates that you have read and understand
      this notice, and that you consent to pay any penalties, administrative costs,
      and interest that may be assessed by HUD. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1015 Last Revised: 11/26/2025 (2) Compliance with All Applicable Laws, Rules,
      and Requirements The Lender must comply with all laws, rules, and requirements
      applicable to the loan transaction, including full compliance with the requirements
      applicable to the following under the purview of the Consumer Financial Protection
      Bureau (CFPB): • Truth in Lending Act (TILA) • Real Estate Settlement Procedures
      Act (RESPA) • the FCRA and the ECOA, as implemented by Regulation B (12 CFR
      Part 1002) (3) Nondiscrimination Policy The Lender must fully comply with all
      applicable provisions of nondiscrimination and equal opportunity laws, regulations,
      and contract provisions including, but not limited to: • Fair Housing Act, 42
      U.S.C. §§ 3601–3619; • the FCRA, 15 U.S.C. §§ 1681a‒1681x; and • the ECOA, 15
      U.S.C. §§ 1691a‒1691f. The Lender must make all determinations with respect
      to the adequacy of the Borrower’s income in a uniform manner without regard
      to race, color, religion, sex, age, national origin, familial status, disability,
      marital status, receipt of public assistance, because an applicant has in good
      faith exercised any right under the Consumer Credit Protection Act, or location
      of the Property. (C) Application Document Processing The Lender must order the
      FHA case number and perform any associated tasks performed directly in FHA Connection
      (FHAC). The Lender may use nonemployees in connection with its origination of
      FHA-insured Loans only as described below. The Lender ultimately remains responsible
      for the quality of the Loan and strict compliance with all applicable FHA requirements,
      regardless of the Lender’s relationship to the person or entity performing any
      particular service or task. (1) Sponsored Third-Party Originator The Title I
      Lender is responsible for dictating the specific application and processing
      tasks to be performed by the sponsored TPO. Only HUD-approved Lenders/Mortgagees
      acting in the capacity of a sponsored TPO may have direct access to FHAC. (2)
      Dealer The Lender is responsible for approving and monitoring a Dealer and dictating
      the specific application and processing tasks that the Dealer performs. II.
      ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4.
      Manufactured Home Loan Program Handbook 4000.1 1016 Last Revised: 11/26/2025
      (3) Contract Service Providers A Lender may use qualified contractors to perform
      the administrative and clerical loan processing functions, provided the contractors
      do not have an interest in the transaction. These contractors perform the following
      functions: typing loan documents, mailing out and collecting verification forms,
      ordering credit reports, and/or preparing for endorsement and shipping Loans
      to Investors. (4) Excluded Parties 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 Mortgagee must ensure that no sponsored
      TPO or contractor engages such an entity or person to perform any function relating
      to the origination of an FHA-insured Mortgage. The Lender must check the System
      for Award Management (SAM) and must follow appropriate procedures defined by
      that system to confirm eligibility for participation. (5) Underwriter Qualifications
      HUD does not approve nor require Direct Endorsement certification for Title
      I underwriters. Title I Lenders approve the underwriter based on demonstrated
      capabilities and knowledge in loan underwriting. The Lender must register each
      underwriter in FHAC. By registering the underwriter in FHAC, the Lender certifies
      that the underwriter meets the necessary qualifications to underwrite Title
      I Manufactured Home Loans. The underwriter must be a full-time employee of the
      Lender. (D) Initial Document Processing The Lender begins processing the Loan
      by obtaining the URLA (Fannie Mae Form 1003/Freddie Mac Form 65) and form HUD-92900-TI.
      (E) Case Number Assignment A Lender reports all prospective Title I Manufactured
      Home Loans to HUD via the “Case Number Assignment” screen on the FHAC portal
      web site. The information required on this screen includes general loan information,
      and information about the Borrower, the home unit and the home site. Once the
      Lender’s submission passes all data entry validations, it is accepted for overnight
      processing. This process verifies the submitted data against a series of system
      validations. Once completed, the system will issue a Title I case number that
      will be specific to the loan II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1017 Last Revised: 11/26/2025 transaction. The system will advise the Lender
      if additional information is required or if corrections are needed. (1) Case
      Numbers on Sponsored Originations The Lender will not be able to order case
      numbers for sponsored originations unless their sponsored TPO has been registered
      in FHAC. (2) Canceling a Case Number The Lender may cancel FHA case numbers
      in FHAC under the following circumstances: • an appraisal has not been completed
      and the Borrower will not close the loan as an FHA-insured Loan; • the FHA insurance
      will not be sought; or • the appraisal has already expired. ii. Manufactured
      Home Loan Eligibility and Purpose (A) Definition Manufactured Home Loan refers
      to a Loan for the purchase or refinancing of a Manufactured Home and/or the
      lot on which to place such home. Unless otherwise indicated, the term includes
      Manufactured Home Purchase Loans, Manufactured Home Lot Loans, and Combination
      Loans. Manufactured Home Purchase Loan refers to a Loan for the purchase or
      refinancing of a Manufactured Home exclusive of any lot or site, and may also
      include a garage, patio, carport, or other comparable appurtenance. A Combination
      Loan refers to a Loan made for the purchase or refinancing in a single transaction
      of a Manufactured Home and a manufactured home lot, and may also include a garage,
      patio, carport, or other comparable appurtenance. (B) Standard The loan proceeds
      may be used for the following loan types and purposes. (1) Manufactured Home
      Loan A Manufactured Home Loan is used to purchase or refinance a Manufactured
      Home unit. (2) Manufactured Home Lot Loan A Manufactured Home Lot Loan is used
      to purchase a parcel of real estate to be used as the site for the placement
      of a Manufactured Home unit. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1018 Last Revised: 11/26/2025 (3) Combination Loan (Manufactured Home and Lot)
      A Combination Loan is used to purchase or refinance a Manufactured Home unit
      and a parcel of real estate to be used as the site for the placement of a Manufactured
      Home unit. (C) Refinance A refinance transaction establishes a new Loan to pay
      off the existing debt for a Borrower with legal title to the subject Property.
      The refinance Loan may also advance additional funds for the purchase of a home
      or lot, which is also referred to as a Combination Loan. (D) General Borrower
      Eligibility Requirements In order to obtain FHA-insured financing, all Borrowers
      must meet the eligibility criteria in this section. A party who has a financial
      interest in the loan transaction, such as the seller, builder or real estate
      agent, may not be a co-Borrower or a Co-signer. Exceptions may be granted when
      the party with the financial interest is a Family Member. (1) Social Security
      Number (a) Standard Each Borrower must provide evidence of their valid Social
      Security Number (SSN) to the Lender. Individuals employed by the World Bank,
      a foreign embassy, or equivalent employer identified by HUD are not required
      to provide an SSN. (b) Required Documentation The Lender must: • validate and
      document an SSN for each Borrower, co-Borrower, or Co-signer on the Loan by:
      o entering the Borrower’s name, date of birth, and SSN in the Borrower/address
      validation screen through FHAC; o examining the Borrower’s original pay stubs;
      IRS Form W-2s, Wage and Tax Statement; valid Tax Returns obtained directly from
      the Internal Revenue Service (IRS); or other document relied upon to underwrite
      the Loan; and • resolve any inconsistencies or multiple SSNs for individual
      Borrowers that are revealed during loan processing and underwriting using a
      service provider to verify the SSN with the Social Security Administration (SSA).
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
      4. Manufactured Home Loan Program Handbook 4000.1 1019 Last Revised: 11/26/2025
      (2) Borrower Age Limits The Borrower must be old enough to enter into a loan
      Note that can be legally enforced in the state, or other jurisdiction, where
      the Property is located. There is no maximum age limit for a Borrower. (3) Occupancy
      The Borrower must own and occupy the Manufactured Home as a Principal Residence.
      Non-Occupant Borrowers are not permitted unless there is proof that they are
      exempted due to military service with overseas assignments. (4) Borrower and
      Co-Borrower Ownership and Obligation Requirements To be eligible, all Borrowers
      and co-Borrowers must take title to the Property at settlement, be obligated
      on the Note or credit instrument, and sign all security instruments. Not all
      individuals with an interest in the Property are required to be Borrowers. However,
      the Loan must be executed by all parties necessary to make the lien valid and
      enforceable under state law. (5) Military Personnel Eligibility (a) Standard
      Borrowers who are military personnel, who cannot physically reside in a Property
      because they are on Active Duty, are still considered Owner- Occupant Borrowers
      and are eligible for maximum financing if a Family Member of the Borrower will
      occupy the subject Property as their Principal Residence, or the Borrower intends
      to occupy the subject Property upon discharge from military service. (b) Required
      Documentation The Lender must obtain a copy of the Borrower’s military orders
      evidencing the Borrower’s Active Duty status and that the duty station is more
      than 100 miles from the subject Property. The Lender must obtain the Borrower’s
      intent to occupy the subject Property upon discharge from military service.
      (6) Citizenship and Immigration Status U.S. citizenship is not required for
      loan eligibility. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title
      I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1 1020 Last
      Revised: 11/26/2025 (7) Residency Requirements The Lender must determine the
      residency status of the Borrower based on information provided on the loan application
      and other applicable documentation. In no case is a Social Security card sufficient
      to prove immigration or work status. (a) Permanent Residents (i) Standard A
      Borrower with lawful permanent resident status may be eligible for FHA-insured
      financing provided the Borrower satisfies the same requirements, terms, and
      conditions as those for U.S. citizens. (ii) Required Documentation The case
      binder must include evidence of the permanent residency and indicate that the
      Borrower is a lawful permanent resident on the URLA (Fannie Mae Form 1003/Freddie
      Mac Form 65). The U.S. Citizenship and Immigration Services (USCIS) within the
      Department of Homeland Security provides evidence of lawful, permanent residency
      status. (b) Citizens of the Federated States of Micronesia, the Republic of
      the Marshall Islands, or the Republic of Palau (i) Standard A Borrower with
      citizenship in the Federated States of Micronesia, the Republic of the Marshall
      Islands, or the Republic of Palau may be eligible for FHA-insured financing
      provided the Borrower satisfies the same requirements, terms, and conditions
      as those for U.S. citizens. (ii) Required Documentation For Borrowers who are
      citizens of the Federated States of Micronesia, the Republic of the Marshall
      Islands, or the Republic of Palau, the case binder must include evidence of
      such citizenship. (c) Non-U.S. Citizens without Lawful Residency Non-U.S. citizens
      without lawful residency in the U.S. are not eligible for FHA-insured Loans.
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
      4. Manufactured Home Loan Program Handbook 4000.1 1021 Last Revised: 11/26/2025
      (8) Borrower Ineligibility due to Delinquent Federal Non-tax Debt (a) Standard
      Lenders are prohibited from processing an application for an FHA-insured Loan
      for Borrowers with delinquent federal non-tax debt, including deficiencies and
      other debt associated with past FHA-insured Mortgages or Loans. Lenders are
      required to determine if the Borrowers have delinquent federal non-tax debt.
      Lenders may obtain information on delinquent Federal Debts from public records,
      credit reports or equivalent, and must check all Borrowers against the Credit
      Alert Verification Reporting System (CAIVRS). (b) Verification If a delinquent
      Federal Debt is reflected in a public record, credit report or equivalent, or
      CAIVRS or an Equivalent System, the Lender must verify the validity and delinquency
      status of the debt by contacting the creditor agency to whom the debt is owed.
      If the debt was identified through CAIVRS, the Lender must contact the creditor
      agency using the contact phone number and debt reference number reflected in
      the Borrower’s CAIVRS report. If the creditor agency confirms that the debt
      is valid and in delinquent status as defined by the Debt Collection Improvement
      Act of 1996, then the Borrower is ineligible for an FHA-insured Loan until the
      Borrower resolves the debt with the creditor agency. The Lender may not deny
      a Loan solely on the basis of CAIVRS information that has not been verified
      by the Lender. If resolved either by determining that the information in CAIVRS
      is no longer valid or by resolving the delinquent status as stated above, the
      Lender may continue to process the loan application. (c) Resolution In order
      for a Borrower with verified delinquent Federal Debt to become eligible, the
      Borrower must resolve their federal non-tax debt in accordance with the Debt
      Collection Improvement Act of 1996. The creditor agency that is owed the debt
      can verify that the debt has been resolved in accordance with the Debt Collection
      Improvement Act. (d) Required Documentation The Lender must include documentation
      from the creditor agency to support the verification and resolution of the debt.
      For debt reported through CAIVRS, the Lender may obtain evidence of resolution
      by obtaining a clear CAIVRS report. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1022 Last Revised: 11/26/2025 (9) Eligibility Period for Borrowers Delinquent
      on FHA-insured Loans If a Borrower is currently Delinquent on an FHA-insured
      Loan, they are ineligible for insurance on a new FHA Loan unless the delinquency
      is resolved. (10) Delinquent Federal Tax Debt (a) Standard Borrowers with delinquent
      Federal Tax Debt are ineligible. Tax liens may remain unpaid if the Borrower
      has entered a valid repayment agreement with the federal agency owed to make
      regular payments on the debt, and the Borrower has made timely payments for
      at least three months of scheduled payments prior to the date of application.
      The Borrower cannot prepay scheduled payments in order to meet the required
      minimum of three months of payments. The Lender must include the payment amount
      in the agreement in the calculation of the Borrower’s Debt-to-Income (DTI) ratio.
      (b) Verification Lenders must check public records and credit information to
      verify that the Borrower is not presently delinquent on any Federal Debt and
      does not have a tax lien placed against their Property for a debt owed to the
      federal government. (c) Required Documentation The Lender must include documentation
      from the IRS evidencing the repayment agreement and verification of payments
      made, if applicable. (11) Valid First Liens (a) Standard The Borrower must be
      able to provide a valid first lien on the Property securing the debt. The Lender
      must ensure that the Property will be free and clear of all liens other than
      for the FHA-insured Manufactured Home Loan. (b) Consent of Non-purchasing Spouses
      If it is necessary to perfect a valid first lien under state law, the Lender
      must require a non-purchasing spouse to execute either the security instrument
      or documentation indicating that they are relinquishing all rights to the Property.
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
      4. Manufactured Home Loan Program Handbook 4000.1 1023 Last Revised: 11/26/2025
      (c) Required Documentation The lien must be documented in the case binder by
      a Lender or deed of trust, executed by the Borrower and in Fee Simple. (12)
      Eligibility Requirements for Living Trusts (a) Property Held in Living Trusts
      The Lender must not originate a Title I Manufactured Home Loan for a Property
      held by the Living Trust. (b) Living Trusts and Security Instruments The security
      instrument, such as a Loan or deed of trust, must not name a Living Trust as
      property owner. The individual borrower name(s) must appear on the security
      instrument, property deed, and title. (E) Excluded Parties (1) Borrower (a)
      Standard Borrowers with a new Loan or assumption are not eligible to participate
      in FHA-insured loan transactions if they are suspended, debarred, or otherwise
      excluded from participating in HUD programs. Exception Establishing Excluded
      Parties is not required for an existing Borrower being evaluated under Loss
      Mitigation Tools. (b) Required Documentation The Lender must check the HUD LDP
      List to confirm the Borrower’s eligibility to participate in an FHA-insured
      loan transaction. The Lender must check SAM and must follow appropriate procedures
      defined by that system to confirm eligibility for participation. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured
      Home Loan Program Handbook 4000.1 1024 Last Revised: 11/26/2025 (2) Other Parties
      to the Transaction (a) Standard A Loan is not eligible for FHA insurance if
      anyone participating in the loan transaction is found on HUD’s LDP List or in
      SAM. This may include but is not limited to: • Borrower • seller (except where
      selling the Principal Residence) • Dealer or retailer • listing or selling real
      estate agent • loan officer • loan processor • underwriter • Appraiser • broker
      (b) Required Documentation The Lender must check the HUD LDP List and SAM, and
      must follow appropriate procedures defined by that system to confirm eligibility
      for participation. (3) FHA Policy Limiting the Number of Title I Manufactured
      Home Loans per Borrower (a) Standard A Borrower with an existing FHA-insured
      Manufactured Home Loan may not obtain an additional FHA-insured Manufactured
      Home Loan with Title I insurance. A Borrower with an existing FHA-insured Manufactured
      Home Loan may obtain a Title I FHA-insured Property Improvement Loan. (b) Required
      Documentation Each Borrower purchasing a Manufactured Home must sign form HUD-56002-MH,
      Placement Certificate for Manufactured Home, to certify that the Property will
      be the Borrower’s Principal Residence. The Lender must review the URLA (Fannie
      Mae Form 1003/Freddie Mac Form 65), form HUD-92900-TI, and other loan documents
      to assess if the Borrower owns property other than Property associated with
      the transaction. If the Borrower owns other property, the URLA must identify
      the property II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured
      Programs 4. Manufactured Home Loan Program Handbook 4000.1 1025 Last Revised:
      11/26/2025 address, expenses for debt, taxes and insurance, and its use as either
      a Secondary Residence or for investment. (F) Occupancy Types (1) Principal Residence
      (a) Definition A Principal Residence refers to a dwelling where the Borrower
      maintains or will maintain their permanent place of abode, and which the Borrower
      typically occupies or will occupy for the majority of the calendar year. A person
      may have only one Principal Residence at any one time. (b) Standard (i) FHA
      Requirement for Establishing Owner Occupancy All Borrowers must occupy the Property
      within 60 Days of signing the security instrument. (ii) FHA Insurance on a Principal
      Residence FHA will not insure a Manufactured Home Loan if it is determined that
      the transaction was designed to use FHA loan insurance as a vehicle for obtaining
      Investment Properties, even if the Property to be insured will be the only one
      owned using FHA loan insurance. (2) Secondary Residence (a) Definition A Secondary
      Residence refers to a Structure that a Borrower occupies in addition to their
      Principal Residence, but less than a majority of the calendar year. A Secondary
      Residence does not include a Vacation Home. (b) Standard Secondary Residences
      are not permitted under the Title I Manufactured Home Loan program. (3) Investment
      (a) Definition An Investment Property refers to a Property that is not occupied
      by the Borrower as a Principal or Secondary Residence. II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan
      Program Handbook 4000.1 1026 Last Revised: 11/26/2025 (b) Standard Investment
      Properties are not permitted under the Title I Manufactured Home Loan program.
      (G) General Property Eligibility (1) Eligible Geographic Locations The Property
      must be located within the U.S., Puerto Rico, Guam, the Virgin Islands, the
      Commonwealth of the Northern Mariana Islands, or American Samoa. (2) Restrictions
      on Property Locations within Coastal Barrier Resources System In accordance
      with the Coastal Barrier Resources Act, a Property is not eligible for FHA loan
      insurance if the improvements are in or are proposed to be located within the
      Coastal Barrier Resources System (CBRS). (3) Hazard Insurance (a) Standard Hazard
      insurance is required for all Manufactured Homes and must be maintained for
      the life of the insured Loan. Hazard insurance is not required for FHA-insured
      Loans that secure a lot. The minimum amount of insurance must be the greater
      of the unpaid balance due on the Title I Loan or the actual value of the home
      where state law precludes a higher amount. The Lender must be named as the loss
      payee. (b) Lender Responsibilities If during the lender term the Borrower does
      not maintain the required hazard insurance, the Lender must obtain the insurance
      and may pass on the expense to the Borrower. The Lender assumes the risk and
      potential costs on a Property that is not insured in compliance with the above
      requirements. (c) Required Documentation The Lender must maintain a copy of
      the Declarations page throughout the life of the Loan. II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT E. Title I Insured Programs 4. Manufactured Home Loan
      Program Handbook 4000.1 1027 Last Revised: 11/26/2025 (4) Special Flood Hazard
      Areas The Lender must determine if a Property is located in a Special Flood
      Hazard Area (SFHA) as designated by the Federal Emergency Management Agency
      (FEMA). The Lender must obtain flood zone determination services, independent
      of any assessment made by the Appraiser, to cover the Life of the Loan Flood
      Certification. Flood Insurance is required when any portion of the home site
      or residential improvement including Structures or equipment essential to the
      value is located in an SFHA identified by FEMA using the Life of the Loan Flood
      Certification and must be maintained for the life of the insured Loan. A Property
      is not eligible for FHA insurance if a home site on which a Manufactured Home
      is placed is: • located within SFHA Zone V, a Coastal High Hazard Area; or •
      located within SFHA Zone A and insurance under the National Flood Insurance
      Program (NFIP) is not available in the community; or • proposed to be located
      within a CBRS. A Property may be eligible for FHA insurance if a home site on
      which the Manufactured Home is placed is located in an SFHA if: • a FEMA issued
      Letter of Map Amendment (LOMA) or Letter of Map Revision (LOMR) removes the
      Property from the SFHA; or • a FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152)
      shows the finished grade beneath the Manufactured Home is at or above the 100-year
      return frequency flood elevation. To be eligible for FHA insurance, a Property
      located in an SFHA must be in a community that participates in the NFIP and
      has NFIP available, regardless of whether the Borrower obtains NFIP coverage.
      (5) Flood Insurance (a) Standard Flood Insurance is required if the Property
      to be improved is secured and is located in a FEMA designated flood hazard area.
      The amount of insurance must be no less than the unpaid balance due on the Title
      I Loan, and the Lender must be named as the loss payee. Prior to closing, Lenders
      must inform Borrowers of the requirement to have or obtain adequate Flood Insurance
      as a condition of closing for Properties where II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      E. Title I Insured Programs 4. Manufactured Home Loan Program Handbook 4000.1
      1028 Last Revised: 11/26/2025 any portion of the dwelling and related Structures
      or equipment essential to the Property Value is located in an SFHA. Flood Insurance
      must be maintained for the life of the insured Loan. (b) Required Documentation
      The Lender must obtain the Life of the Loan Flood Certification indicating whether
      or not the home site is located within an SFHA. When the home site is located
      in an SFHA, the Lender must provide HUD a copy of the pages from the Flood Insurance
      policy showing the coverage amount required and reflecting the Lender as the
      loss payee. (i) Requirements for Private Flood Insurance If the Borrower purchases
      a Private Flood Insurance (PFI) policy in lieu of an NFIP policy, the Mortgagee
      must ensure the PFI policy meets the following requirements: • is issued by
      an insurance company that is licensed, admitted, or otherwise approved to engage
      in the business of insurance in the state or jurisdiction in which the Property
      to be insured is located, by the insurance regulator of the state or jurisdiction;
      or, in the case of a policy of difference in conditions, multiple peril, all
      risk, or other blanket coverage insuring nonresidential commercial property,
      is recognized, or not disapproved, as a surplus lines insurer by the insurance
      regulator of the state or jurisdiction where the Property to be insured is located;
      • provides Flood Insurance coverage that is at least as broad as the coverage
      provided under a standard Flood Insurance policy under the NFIP for the particular
      type of Property, including when considering exclusions and conditions offered
      by the insurer; • includes deductibles that are no higher than the specified
      maximum, and includes similar nonapplicability provisions, as under a standard
      Flood Insurance policy under the NFIP; • includes a requirement for the insurer
      to provide written notice 45 Days before cancellation or nonrenewal of Flood
      Insurance coverage to the Borrower and the Mortgagee. In cases where the Mortgagee
      has assigned the loan to HUD, the insurer must provide notice to HUD and, where
      applicable, to the Borrower; • includes information about the availability of
      Flood Insurance coverage under the NFIP; • includes a mortgage interest clause
      similar to the clause contained in a standard Flood Insurance policy under the
      NFIP; II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT E. Title I Insured Programs
      4. Manufactured Home Loan Program Handbook 4000.1 1029 Last Revised: 11/26/2025
      • includes a provision requiring the Borrower to file suit no later than one
      year after the date of a written denial for all or part of a claim under the
      policy; and • contains cancellation provisions that are as restrictive as the
      provisions contained in a standard Flood Insurance policy under the NFIP. (ii)
      Private Flood Insurance Policy Compliance Aid Definition The Private Flood Insurance
      (PFI) Policy Compliance Aid is the statement: “This policy meets the definition
      of private flood insurance contained in 24 CFR 203.16a(e) for FHA-insured mortgages.”
      Standard The PFI Policy Compliance Aid may be made by the insurance provider,
      attesting that a PFI policy meets the requirements of Flood Insurance. The Mortgagee
      may rely on the PFI Policy Compliance Aid to determine whether a PFI policy
      meets the Flood Insurance requirements. A Mortgagee may not reject a policy
      solely because it is not accompanied by a PFI Policy Compliance Aid.'
  judgment: false
