Fannie Expands MH Loan Criteria

Fannie Mae has expanded the criteria for manufactured housing loans that it will purchase from lenders who make such loans.The agency had been doing a pilot with 10 lenders on the product since February. Under the new criteria, borrowers will be able to make a 5% downpayment for loans with terms of up to 30 years on a manufactured home used as a principal residence. Fannie said it will buy purchase-money mortgages, while cash-out refinance loans will be bought on a limited basis. The changes go into effect on Dec. 1. "We announced several measures last June to strengthen our requirements for mortgages secured by manufactured homes," said Chuck Rumfola, Fannie's vice president for manufactured housing. "Today's changes will allow us to further broaden the availability of financing for this affordable-housing type." Fannie Mae can be found online at http://www.fanniemae.com.