Markdown_files/FHA handbook/page_1157.md

# II. Origination Through Post-Closing/Endorsement

## E. Title I Insured Programs

### 4. Manufactured Home Loan Program

#### ix. Fees and Charges that May be Collected, but May Not be Financed

##### (A) Standard

The following fees and charges, incurred by a Lender in connection with a Manufactured Home Loan, may be collected from a Borrower, but may not be included in the loan amount or otherwise financed or advanced by a Dealer, a manufacturer, or any other party to the loan transaction.

Discount Points may be paid by the Borrower, but only if the Lender can demonstrate a clear relationship between the Discount Points being charged and a compensating decrease in the interest rate on the Loan.

The fees and charges that may be collected and not financed are limited to the following and amounts where indicated:

- A fee for the services of a qualified Closing Agent to act on behalf of the Lender in closing a Dealer Loan transaction;
- Premiums for credit life insurance or credit disability insurance;
- Other fees necessary to establish the validity of a lien;
- Title insurance costs for Manufactured Home Lot Loans or Combination Loans;
- Survey costs for Manufactured Home Lot Loans or Combination Loans;
- Escrows:
  - Payments into an insurance escrow account for the current year for all Title I Manufactured Homes; and
  - Tax escrows for the current year, only for Manufactured Home Lot Loans and Combination Loans;
- A lender inspection fee greater than $125 may be charged but not financed so long as the Lender can document that the fee is reasonable and customary;
- A site placement inspection fee conducted by a state or local government that is reasonable or customary, but no more than $500 may be financed into the Loan;
- Costs for the following are permitted to be charged only for Manufactured Home Lot Loans, and Combination Loans, where applicable:
  - Title insurance;
  - Survey; and
  - Payments into a tax escrow account for the current year; and
- Such other items as may be specified by HUD.

##### (B) Required Documentation

The case binder must identify the fees and charges collected and not financed into the Loan. The Lender must include the invoice(s) for the inspection fee, together with documentation supporting the government requirement for the inspection in the loan package for both any pre-endorsement review that may be required and any insurance claim submission.

**Handbook 4000.1 1128**  
**Last Revised: 01/10/2025**