In a letter this week to FHA Commissioner David Stevens, MHI urged FHA to reconsider its proposal to reduce the limit on seller concessions from 6% to 3% on FHA Title II loans. MHI submitted comments in a recent letter to FHA Commissioner David Stevens. Click here to view the letter.

Although MHI supports and recognizes the need to reduce the limit on seller concessions in some instances in order for FHA to ensure a viable and sustainable lending program, for a majority of borrowers, a reduction of the credit concession may be unwarranted and unnecessary.

“The ability to provide an incentive to credit-worthy manufactured home loan borrowers, whom are primarily low-income, is an important resource. Reducing the concession essentially creates a barrier to entry for credit-worthy borrowers that may be unable to bring significant resources to the closing table” the MHI comment letter states.

If you are a member and have questions, contact MHI Vice President of Government Affairs Jason Boehlert at jboehlert@mfghome.org.