HUD Enacts Indexing Methodology for Title I Manufactured Home Loan Limits

HUD recently released a final rule (pursuant to requirements under HERA) that establishes indexing methodologies for annually calculating the loan limits for manufactured home loans, manufactured home lot loans, and manufactured home and lot combination loans that are insured under Title I of the National Housing Act. 

With respect to single-section manufactured home loans, HUD will set the annual loan limit at 115% of the average single-section home price with an adjustment for inflation.  For multi-section homes, HUD will set the annual loan limit at 115% of the average double-section home price with an adjustment for inflation.  HUD will use the CPI-U forecast in the President’s Economic Assumptions, or similar replacement data sets or reports, to determine inflation.

With respect to manufactured home lot loans, HUD will use the loan limits established by HERA, subject to indexing using changes in the median new home price based on the most recent data from the Survey of Construction from the Census Bureau.

With respect to combination manufactured home and lot loans, HUD will use the manufactured home lot loan limit, plus the applicable manufactured home loan limit.

The final rule gives examples of the effect of the methodologies.  For example, based on 2022 census data, HUD notes that the current HERA limits for a single-section manufactured home loan is $69,678, while the 2024 loan limits would be $106,405.

These provisions take effect March 29, 2024.