HOMEOWNERSHIP

Manufactured housing

CalHFA adopts the U.S. Department of Housing and Urban Development (HUD), Veterans Administration (VA) and the Federal National Mortgage Association (Fannie Mae) standards and requirements, except as noted herein, for manufactured housing financing on FHA insured loans, VA loan guaranty, and conventional loans respectively. HUD, VA, and Fannie Mae have developed standards and requirements that recognize the uniqueness of financing manufactured housing. These standards address important issues such as appraisal approaches, national construction standards and certification, defined real estate, ownership requirements, size requirements, and manufactured housing definitions.

CalHFA will accept individual VA guaranteed and FHA insured loans for compliance and purchase review that are secured by manufactured housing and conform to VA and HUD manufactured homes requirements respectively. Manufactured home projects must be FHA or VA approved when FHA and VA loans will be submitted to CalHFA.

CalHFA will accept individual conventional loans for compliance and purchase review and/or mortgage insurance that are secured by manufactured housing if they conform to Fannie Mae manufactured housing requirements as detailed in the Fannie Mae Seller Servicer Guides. Manufactured housing projects must be Fannie Mae approved. CalHFA currently limits the total and combined loan-to-value (TLTV, CLTV) ratio on manufactured housing conventional loans to 90% of the lesser of the acquisition cost or appraised value. Borrowers must have 10% of their own funds for a down payment. Lenders who have access to Fannie Mae’s automated underwriting system may use that method under Manufactured Housing Underwriting requirements except that a TLTV or CLTV exceeding 90% is not acceptable to CalHFA. Manually underwritten loans must comply with criteria provided in CalHFA program descriptions and underwriting guidelines. Underwriting guidelines are contained in CalHFA Homeownership Program Bulletin #2005-17. Mortgage insurance for conventional loans is provided by CalHFA Mortgage Insurance Services.

In addition to the HUD and Fannie Mae manufactured housing requirements, borrowers and properties must conform to all CalHFA regulatory, statutory, and compliance requirements.

As of August 1, 2007, CalHFA's interest only PLUS^SM loan cannot be used if the property being secured is manufactured housing.

Condominium

CalHFA will accept individual conventional loans for compliance and purchase review and/or mortgage insurance applications for condominium properties when the condominium project has been approved in accordance with Fannie Mae’s Condominium Project Acceptance policy (the “Fannie Mae Policy”) announced by Fannie Mae in Announcement 05-03, dated May 20, 2005. With each loan submitted for CalHFA approval, the Lender shall indicate which Fannie Mae project review process was utilized, and provide documentation evidencing project approval under that process.

CalHFA will also accept Government Insured/Guaranteed loans for compliance and purchase review of loans secured by condominium properties. With these types of loans, Lenders are required to follow FHA, VA, and/or USDA Condominium guidelines.

Further, the Lender shall provide CalHFA the same warranties and representations that would be provided to Fannie Mae pursuant to the Fannie Mae Policy. In addition to meeting the Fannie Mae Policy, requirements, borrowers and properties must conform to all CalHFA regulatory, statutory, and compliance requirements.

Homebuyers interested in applying for financing, should contact one of CalHFA's approved lenders.

CalHFA does not lend money directly to consumers. CalHFA works through and uses approved private lenders to qualify consumers and to make all mortgage loans. CalHFA purchases closed loans that meet CalHFA's requirements. The fees consumers pay could be different depending on the lender and the program. View the sample Truth in Lending disclosure here.