HUD Section 207
Mortgage Insurance for Mobile Home Parks

The thought behind HUD program 207, is to promote and create manufactured home communities. This is thought to be done by increasing the availability of affordable financing and mortgages. This goal is further achieved through providing FHA mortgage insurance for HUD-approved lenders.

In brief, Section 207 Program insures mortgage loans. Once insured construction or substantial rehabilitation is then facilitated for multifamily manufactured home parks.

The program works by having FHA insure lenders, who make the loans, against loss on mortgage defaults. Insured mortgages may then be used to finance the construction or rehabilitation of manufactured home parks. Home parks are defined as those which have 5 or more spaces.

One nice feature of the program is that almost anyone may qualify: Investors, builders, developers, your Uncle Joe. Anyone able to meet HUD requirements for mortgagors is acceptable.
 
Interestingly enough, this is a very little known program. HUD did not insure any mortgages under section 2007 in 2007 and very few in 2008.

This might have to do with the tedious application process: A pre-application conference with the local HUD official is required to ascertain the feasibility of the proposed project. One must then submit a site feasibility study, obtain an appraisal and market analysis (SAMA). There is much more, but one gets the point.

Have Questions? Want to get Started? Please Contact Us: