```markdown
# II. Origination Through Post-Closing/Endorsement

## E. Title I Insured Programs

### 4. Manufactured Home Loan Program

The Lender must ensure that the Note and all other documents evidencing the loan transaction are in compliance with applicable federal, state, and local laws.

The Note must:

- State the principal amount of the Loan and the annual rate of interest;
- Bear the signature of each Borrower and of any co-maker or Co-signer; and
- Be valid and enforceable against the Borrower and any co-maker or Co-signer.

#### (2) Interest Rate

The interest rate is negotiated between the Lender and the Borrower. The interest rate must be fixed for the full term of the Loan and must be stated in the Note or retail sales installment contract. Interest on the Loan must accrue from the date of the Loan, and be calculated on a simple interest basis.

Adjustable Rate Mortgage products are not permitted for FHA Title I Manufactured Home Loans.

#### (3) Temporary Interest Rate Buydown Requirements

Temporary interest rate buydowns are not permitted.

#### (4) Signature

The Borrower and any co-maker or Co-signer must execute the Note for the full amount of the loan obligation. Although the Borrower(s) may sign the Note on an earlier date, the date of the Loan must be the date that the loan proceeds are disbursed by the Loan. Such date should be entered on the Note when Disbursement occurs.

#### (5) Payments on the Loan

The Note must provide for equal installment payments that are due monthly. The first scheduled Loan Payment must be due no later than two months from the date of the Loan. The Note may provide for the first and/or final payments to vary in amount but not to exceed 1.5 times the regular installment.

#### (6) Default Provision

The Note must contain a provision for acceleration of maturity, at the option of the holder, upon a monetary Default by the Borrower.

**Handbook 4000.1 1131**  
**Last Revised: 01/10/2025**
```