Manufactured Housing Installer Bond - HUD in All States
Table of Contents
Brief Summary
If you install new manufactured homes in a state where HUD runs the installation program, your federal installer license depends on carrying insurance plus a surety bond or letter of credit. A bond keeps your cash free for the job site, and the bond number goes straight onto HUD Form 307.
HUD licenses manufactured home installers in states that do not run their own qualifying installation program. Under 24 CFR 3286.205(d), each applicant must carry insurance and either a surety bond or an irrevocable letter of credit covering the cost of repairing all damage the installer causes to the home and its supports during installation, up to replacement of the home. The license lasts 3 years.
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How to Apply for a Manufactured Housing Installer Bond:
- Confirm the home is going into a state where HUD, not the state, runs the installation program.
- Complete HUD Form 307, the installation license application.
- Buy the surety bond, or arrange an irrevocable letter of credit, and keep insurance in force as well.
- Enter the insurance carrier, policy number and bond number in Section 5 of Form 307.
- Attach proof of experience, the training certificate and the exam score record.
- Renew at least 60 days before the 3 year license expires.
Detailed Information About the All States Manufactured Housing Installer Bond:
Who needs it
The requirement applies only where HUD administers the Manufactured Home Installation Program. Under 24 CFR 3286.203, any person or company that directs, supervises or controls the initial installation of a new manufactured home in a state without a qualifying installation program must hold, or employ someone who holds, a HUD installation license. States that run their own approved program license installers under their own rules, and a HUD license is not what they ask for.
Some work does not need a license at all. Utility connections, site preparation outside the federal installation standards, temporary placement on a sales or storage lot, warranty repairs by the manufacturer and FEMA emergency installations are all excluded.
What changed in 2024
The original rule let installers show a surety bond or insurance. HUD amended 3286.205(d) in September 2024, and the current text requires insurance and, in addition, either a surety bond or an irrevocable letter of credit. Carrying insurance alone no longer satisfies the rule.
What the bond covers
The regulation does not set a fixed dollar amount. It defines the coverage instead: the cost of repairing all damage to the home and its supports caused by the installer during installation, up to and including replacement of the home. Confirm the amount HUD will accept for your operation with the Office of Manufactured Housing Programs before the bond is issued.
Applying and renewing
You apply on HUD Form 307 and list the bond or letter of credit number in Section 5. HUD also wants proof of experience, 12 hours of training, and a passing score of 70 percent on the installation exam. A license expires 3 years after issue. File the renewal at least 60 days before expiration with proof of 8 hours of continuing education, or you will have to apply again as a new installer. HUD can ask for proof of the bond at any time, and you must tell HUD about any change or cancellation.
Eligibility and Requirements for an All States Manufactured Housing Installer Bond:
- Insurance plus either a surety bond or an irrevocable letter of credit, as required by 24 CFR 3286.205(d).
- Coverage for repairing all installer caused damage to the home and its supports, up to replacement of the home.
- Name on the bond matching the name on the Form 307 application.
- Prompt notice to HUD of any change or cancellation of the bond or insurance.
- Owner credit review by the surety, which shapes the premium.
All States Manufactured Housing Installer Bond FAQs:
Not anymore. Since the September 2024 amendment, 24 CFR 3286.205(d) requires insurance and either a surety bond or an irrevocable letter of credit.
No. The HUD license is required only in states without a qualifying installation program. States with their own approved program license installers themselves.
The regulation sets coverage by the cost of repairing installation damage up to replacing the home, not by a fixed figure. Confirm the amount with HUD's Office of Manufactured Housing Programs before the bond is written.
The surety prices the bond from the bond amount and the owner's credit and business history. You will see the actual premium when you apply.
Licenses run 3 years. Submit the renewal at least 60 days before expiration, with 8 hours of continuing education. A late renewal means applying as a new installer.
