MOBILE HOME SELF-INSURED OPTION (MHSI) – SUMMARY
MaineHousing self-insures eligible mobile home loans having a loan-to-value greater than 80% and less than or equal to 95%.
Borrowers are required to pay a higher interest rate in lieu of paying mortgage insurance. Eligible property types include single-wide
and double-wide mobile homes located on owned land, approved parks or privately leased lots.
Eligible Applicants
First-time homebuyers and those who have not owned their own homes in the past 3 years. Exceptions:
• Persons who have owned unattached mobile home on leased land
• Honorably discharged veterans, retired military & active duty military who have owned a home within the
past 3 years but have sold it prior to the MaineHousing closing
Underwriting
• Maximum debt ratios: 33% for housing (PITI)/45% for total debt to income
• Minimum credit score of 640
• Presented with strong compensating factors, MaineHousing will consider exceptions on a case-by-case
basis. Underwriter must submit Underwriting Risk Assessment form HMP-54 and obtain MaineHousing’s
(written) approval three days prior to closing.
Income Limits
Household income limits apply, and vary by location and household size
Purchase Price Limits
$200,000 for leased land, $250,000 for owned land, statewide
Seller Contributions
Up to 3% of the Purchase Price may be used toward closing costs and prepaid expenses. Seller may not contribute
to the down payment.
Property Requirements
•
Single-wide and double-wide mobile homes < 20 years of age, must be permanently attached per code at
the time of closing
• Must be owner occupied within 60 days of closing
• Units located in an approved park require a written lease with the same term as the mortgage
• Commercial use limit. Must not use more than 15% of the residence for trade or business. Includes total
square footage of all buildings.
Terms
Mobile Home Age
Loan term must equal:
0-10 years
30 years
11-15 years
25 years
16-20 years
20 years
Down Payment
5% down payment required; 3% must be from borrowers’ own funds (even if combined with Advantage)
Advantage
MaineHousing’s down payment and closing cost assistance option can provide $5,000 toward the cash needed for
closing. Applicants choosing Advantage must take a hoMEworks approved homebuyer education class prior to
closing and must make a minimum borrower contribution of 1% of the loan amount. The 1% requirement can be
met within the 3% “own funds” down payment requirement, and not in addition to it. The cost of the homebuyer
education class counts towards the 1%.
Purchase Plus
Improvement
Allows borrowers to add up to $35,000 to the loan amount for repairs. Note: The total of home purchase price
and repairs must not exceed $250,000.
Interest Rate
Current First Home rate except for Mobile Home Self Insured loans.
Program Option
Rate Add-on
Mobile Home Self Insured
1.00%
Maine State Housing Authority (“MaineHousing”) does not discriminate on the basis of race, color, religion, sex, sexual orientation, gender identity or expression, national origin,
ancestry, physical or mental disability, age, familial status or receipt of public assistance in the admission or access to or treatment in its programs and activities. In employment,
MaineHousing does not discriminate on the basis of race, color, religion, sex, sexual orientation, gender identity or expression, national origin, ancestry, age, physical or mental
disability or genetic information. MaineHousing will provide appropriate communication auxiliary aids and services upon sufficient notice. MaineHousing will also provide this
document in alternative formats upon sufficient notice. MaineHousing has designated the following person responsible for coordinating compliance with applicable federal and state
nondiscrimination requirements and addressing grievances: Lauren Bustard, Maine State Housing Authority, 26 Edison Drive, Augusta, Maine 04330, Telephone Number 1-800-
452-4668 (voice in state only), (207) 626-4600 (voice) or Maine Relay 711.
072324
