The Federal Housing Administration (FHA) has announced an increase in lending limits for the Title I Manufactured Home Loan Program. This measure is aimed at encouraging more lenders to participate in the program by aligning market forces with the FHA.

According to a news release from the U.S. Department of Housing and Urban Development (HUD), this move is consistent with the Biden administration's efforts to make housing more affordable. For the first time in 15 years, loan limits under the Title I program have been raised, allowing manufactured homes to be used as affordable housing options for homebuyers.

HUD Secretary Marcia L. Fudge stated, "We are using every tool possible to make affordable housing available for all Americans. Today’s announcement is another positive step toward helping people to buy manufactured homes, an innovative solution to the affordable housing supply crisis."

The news release also indicated that new nationwide loan limits related to FHA case numbers under the Title I Manufactured Home Loan Program will take effect on March 29. The revised loan limits include $237,096 for a combination loan (multi-section); $148,909 combination loan (single-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.

FHA Commissioner Julia Gordon emphasized the affordability potential offered by these changes and how they provide homeowners with an option to purchase manufactured homes.

Gordon said, "Updating the Title I loan limits was the next critical piece in our ongoing efforts to make the Title I Manufactured Home Loan Program work for lenders and homebuyers for whom manufactured housing offers an affordable way to meet their housing needs. We hope these changes will prompt more lenders to consider using the Title I program to meet the financing needs of consumers purchasing or refinancing manufactured homes."