SFH Guaranteed Origination
November 12, 2024
The Policy Desk: Proposed Revisions to HB-1-3555
The Single Family Housing Guaranteed Loan Program (SFHGLP) is seeking input on proposed revisions to several chapters of technical Handbook 1-3555 in anticipation of the upcoming publication of the Existing Manufactured Home Final Rule. The proposed revisions have been posted to the SFHGLP Policy Desk, accepting comments through December 8, 2024. Below are the highlighted proposed revisions:
Chapter 2 – Record Retention
- Updated references to the record retention depository utilized by the Agency to the Electronic Customer File (ECF).
Chapter 6 – Loan Purposes
- Clarified that funds provided by the seller to pay the buyer’s real estate commission fees are excluded from the 6% seller concession limitation.
- Revised the seasoning period for existing loans to be eligible for any of the refinance options to 180 days.
- Clarified that to qualify for a refinance, the existing loan must have a mortgage payment history which does not reflect a delinquency greater than 30 days within the previous 180 day period.
- Removed existing manufactured homes from the list of prohibited loan purposes.
Chapter 12 – Property and Appraisal Requirements
- Clarified the one-year builder’s warranty must be fully executed, to include the date of warranty, warrantor, buyer, location, and include all applicable signatures.
- Under the “Rehabilitation and Repair with Purchase of Existing Dwellings” section, updated the maximum amount of nonstructural repairs to $75,000 and clarified the home must be considered habitable within 30 days of purchase.
- Under the “Rehabilitation and Repair with Purchase of Existing Dwellings” section, updated the structural repair product to include those exceeding $75,000 and extended the reserve period to 10 months.
- Removed repairs to new or existing manufactured homes from the list of prohibited purposes.
Chapter 13 – Special Property Types
- Clarified that community land trust, leasehold interest properties, and manufactured homes require a title insurance policy.
- Clarified that new manufactured homes must have been built within 12 months of the date of loan closing and the certification label must remain visible after all work is complete in order to complete the installation of the home at the home site.
- Added guidelines for financing existing manufactured homes to implement the requirements identified in the upcoming publication of the Existing Manufactured Home Final Rule.
- Removed Attachments 13-A and 13-B and all references to these documents.
Appendix 2 – Forms and Instructions
- Removed references to RD Instructions not cited in the Handbook.
Appendix 3 – Review and Appeals
- Updated references to the record retention depository utilized by the Agency to the Electronic Customer File (ECF).
Appendix 7 – Credit Alert Interactive Voice Response System (CAIVRS)
- Clarified the lender must obtain and document CAIVRS as part of the loan submission.
- Updated the contact information for system access.
Feedback can be provided using the Stakeholder Comment Form located on the SFHGLP Policy Desk, or by emailing the Policy Desk at sfhgld.policydesk@usda.gov.
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