Delaware’s Manufactured Housing Assistance Program helps struggling manufactured (mobile) home owners make their home loan payments or lot rent payments. Keep reading to learn the details of the program and how to qualify for assistance if you are a manufactured home owner suffering from a financial hardship and facing possible repossession or eviction.
(If you own a home that is facing foreclosure, visit our Delaware Foreclosure Law Center.)
Understanding Manufactured Homes
Manufactured homes, formerly referred to as mobile homes, are homes that are constructed on a permanent chassis, with a tongue, axles, and wheels that are transported to a residential site in one or more sections. They may be assessed as real or personal property.
If the manufactured home is considered personal property, then the creditor can repossess it if you fall behind on payments for the home. Learn more about Manufactured Home Foreclosures & Repossessions.
If your manufactured home sits on a rented lot and you fall behind on the rent payments, you may be evicted. Read more in our article Manufactured Homes: What Happens If I'm Behind on My Land Lease Payments?
For more additional on manufactured housing, see our Foreclosure of Manufactured Homes topic area.
Delaware's Manufactured Housing Assistance Program (MHAP)
In Delaware, manufactured homes make up approximately 11% of the homes in the state and many of those homeowners have been hurt by the financial crisis in this country. However, manufactured home owners are often ineligible for the same housing relief programs as traditional homes when the manufactured home is technically considered personal property (like a motor vehicle), rather than real estate.
Delaware’s Manufactured Housing Assistance Program (MHAP), which was created with proceeds from the national mortgage settlement, enables owners of manufactured homes that are assessed as personal property to receive payment assistance for:
- lot rent and/or
- home payments.
Ultimately, the program is designed to help manufactured home owners who face eviction or repossession stay in their homes.
Assistance Available Under MHAP
MHAP pays up to $5,000 for:
- delinquent lot rent and/or home loan payments, including principal, interest, taxes and insurance (if part of the scheduled payments), and
- a portion of the ongoing monthly payments for up to 12 months (up to the maximum $5,000 benefit).
Eligibility for Delaware's Manufactured Home Assistance
Below are the criteria to qualify for assistance under Delaware's program.
Owners of manufactured homes must have suffered a loss of 15% or more of their income from one of the following hardships:
- an involuntary loss of employment or reduction in hours, or
- an inability to work or a reduction in hours able to work due to an injury or illness (of yourself or an immediate family member for whom you are the primary caregiver).
Homeowners must also meet the following criteria:
- Your current gross family income cannot exceed $91,080 for properties in New Castle county or $84,065 for Kent and Sussex counties.
- You must be 90 days or more delinquent on the lot rent and/or home loan for your primary residence (or have received notification of an intent to evict or repossess).
Additionally, the manufactured home and property must also meet certain criteria.
- The manufactured home must be titled with the State of Delaware's Division of Motor Vehicles.
- The home must be located on owned or rented land.
- The property must be located in Delaware.
Commercial, second homes, rental, or any other forms of business property are not eligible for the program.
How the Program Works
The Delaware State Housing Authority brings the homeowner current with a lump sum payment and makes additional payments for up to 12 months so that the homeowner is able to stabilize his or her financial position. MHAP assistance is structured as a no-interest loan that is secured by a lien that must be repaid if:
- the property is refinanced
- the property is sold
- title is transferred, or
- the borrower moves out of the property.
Borrowers are required to contribute 31% of their monthly housing payment each month during the assistance period. Failure to make the payment on time will result in termination of further monthly payment assistance.
How to Apply
You can apply for the program through a housing counselor approved by the Delaware State Housing Authority who will assist in determining if you qualify for MHAP, as well as provide financial advice so you can avoid future budget problems.
If you have fallen behind on your lot rent or house payment and are at risk of eviction or repossession, you should contact an approved MHAP housing counseling agency as soon as possible. To find a list of participating MHAP counseling agencies, go to www.destatehousing.com then click on “Homeownership” and “Manufactured Housing Assistance Program (MHAP).” Then scroll to the bottom of the page for a list of official agencies. (The webpage also contains details about the MHAP program.)
For More Information
For more information or if you have questions about the MHAP program, contact the Delaware State Housing Authority toll-free at 888-363-8808 or via email at ContactDSHA@DeStateHousing.com.
To find general information about manufactured housing, go to www.hud.gov and enter "manufactured home" in the home page search box to find a list of relevant links.