On November 9, 2021, FHA published the Title I Property Improvement, and Manufactured Home Loans Programs sections of its Single Family Housing Policy Handbook 4000.1 (Handbook). All new content may be implemented immediately, but must be implemented by May 9, 2022, except for the new content in Section II: Origination through Post-Closing/Endorsement, which must be implemented for loans closed on or after May 9, 2022.
The Title I sections of the Handbook consolidate existing guidance from approximately 120 Title I Lender Letters and other policy documents. The new sections also replace the existing guidance for Title I Manufactured Home Loans, including Lot and Combination Loans, and Property Improvement Loans in sections: (II) Origination through Post-Closing and Endorsement; (III) Servicing and Loss Mitigation; and (IV) Claims and Disposition. Sections I (Doing Business with FHA) and V (Quality Control, Oversight and Compliance) were generally previously updated and incorporated into the Handbook. FHA noted that the new Title 1 sections, among other things, align the employment and income requirements with FHA’s Title II loan programs, update the financeable fees and charges (e.g., allow the use of gift funds from eligible sources), and expand appraisal options.