Texas Manufactured Housing Bond. Here's Your Cost.
Real-time premium for the TDHCA retailer ($100K), installer ($50K), broker ($25K), and rebuilder ($100K) bonds required under Tex. Occ. Code Ch. 1201.
Includes the Sec. 1201.105 reality check: TDHCA can order additional bond when complaints justify it.
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License Categories and Bond Amounts (Tex. Occ. Code Ch. 1201)
The Texas Manufactured Housing Standards Act (Tex. Occ. Code Ch. 1201) creates five license categories administered by the TDHCA Manufactured Housing Division. Each category carries its own bond face amount aligned to the consumer-protection risk of the activity:
Source: Tex. Occ. Code Ch. 1201 (statutes.capitol.texas.gov) and TDHCA Manufactured Housing Division. Verify current bond schedule on the active TDHCA license application before binding coverage.
When TDHCA May Impose Additional Bond (Sec. 1201.105)
The statutory bond floors above ($100K / $50K / $25K) are the minimum, not the ceiling. Tex. Occ. Code Sec. 1201.105 expressly authorizes the TDHCA director to require additional security from a license holder whose consumer-complaint history or financial exposure indicates the standard bond is inadequate. This is the single most overlooked underwriting and licensing risk on the Texas manufactured-housing line.
Practical triggers TDHCA uses to invoke Sec. 1201.105 include:
- Multiple unresolved consumer complaints indicating a pattern of misrepresentation, non-delivery, or defective installation.
- Prior bond claim payouts that the surety has had to honor on behalf of the licensee.
- Pending or resolved enforcement orders from the TDHCA Manufactured Housing Division, including suspension orders and consent agreements.
- Significant financial exposure relative to bond face, such as a retailer with a high volume of in-transit homes or deposits exceeding the standard $100K.
- Probationary licensure following a prior revocation or restoration of license.
When TDHCA invokes Sec. 1201.105, the licensee must post the additional bond as a condition of continued licensure or face suspension. This is not insurance the surety can decline to write - it is an agency order with statutory backing. Operators with prior TDHCA history should disclose the complaint and enforcement record up front to the surety underwriter and plan for the higher bond face from the start.
Source: Tex. Occ. Code Sec. 1201.105 (additional security) and TDHCA Manufactured Housing enforcement orders.
Rate by FICO (2026 Manufactured Housing Bond Table)
Personal credit is the dominant underwriting factor on the Texas manufactured housing line. The table below shows typical 1-year premiums by FICO band across the four bonded license categories:
Annual premiums shown. Rebuilder $100K bond prices identical to retailer. Sub-580 FICO applicants are typically placed in high-risk-market programs at 8%-12%+ of face. $250 carrier minimum applies on small-face broker bonds at top-tier credit.
How to File Your Bond With TDHCA
- Identify the license category. Confirm whether you are applying as a retailer, broker, installer, rebuilder, or salesperson under Tex. Occ. Code Ch. 1201. Each category has a distinct bond face.
- Bind coverage. Approve and pay the surety premium. The surety issues the bond on the TDHCA Manufactured Housing Division bond form for your license category - Texas requires the state-specific form for this line, not a generic surety bond instrument.
- Original signatures and seal. The licensee (principal) signs as bond principal; the surety's authorized attorney-in-fact signs and affixes the corporate seal. A power of attorney for the attorney-in-fact must be attached to the bond filing.
- Submit with the TDHCA license application packet. The bond is one component of the application alongside license fees, fingerprinting/background check, business information, and any required pre-licensing course or examination results.
- One bond per location. If you operate from multiple TDHCA-licensed retailer or installer locations, file a separate bond (or scheduled rider) for each location.
- Continuous obligation. Keep the bond in force for the entire 2-year license term. Cancellation generally requires 30 days written notice to TDHCA, and a coverage gap triggers automatic license suspension.
- Renewal and additional bond. Bond renewal aligns with the 2-year TDHCA license renewal. If TDHCA invokes Sec. 1201.105 additional-security authority based on complaints or enforcement history, post the additional bond promptly to avoid suspension.
Source: TDHCA Manufactured Housing Division and Tex. Occ. Code Ch. 1201.
Frequently Asked Questions
How much does a Texas manufactured housing bond cost?
Premium depends on license category and personal credit. A retailer or rebuilder ($100K) typically costs $1,000-$1,500/yr at 720+ FICO and $4,000-$8,000/yr at sub-620 FICO. An installer ($50K) runs roughly half that. A broker ($25K) usually falls at the carrier minimum of $250-$625/yr for top credit.
What bond amounts does TDHCA require under Ch. 1201?
Retailer $100,000, Rebuilder $100,000, Installer $50,000, Broker $25,000. Salespersons are typically covered under the employing retailer's bond. Always verify the current bond schedule on the active TDHCA Manufactured Housing application before binding.
Can TDHCA require additional bond beyond the statutory minimum?
Yes - Tex. Occ. Code Sec. 1201.105 expressly authorizes TDHCA to require ADDITIONAL security when consumer complaints, enforcement history, or financial exposure indicate the standard bond is insufficient. Operators with prior TDHCA violations should plan for this.
Do I need a separate bond for each TDHCA location?
Yes - each licensed retailer or installer location generally requires its own bond at full face. A three-location retailer posts three $100K bonds, or files one bond with scheduled-location riders depending on carrier appetite.
How long is the bond term?
TDHCA licenses run on a 2-year cycle and the bond must be continuous for the term. Most operators buy a 2-year bond at about 1.85x the annual rate - roughly a 7.5% discount versus annual renewal. 3-year terms are available at about 2.60x annual.
What does the bond protect against?
Consumers and the State of Texas against fraud, misrepresentation, failure to deliver clear title, failure to deliver the home as contracted, defective installation, conversion of buyer deposits, and other Ch. 1201 or TDHCA-rule violations. Claimants recover up to the bond face; the licensee remains personally liable for any excess.
Will bad credit stop me from getting bonded?
Not necessarily. Standard-market carriers may decline below 580 FICO on the $100K retailer face, but high-risk-market programs continue to underwrite at 8%-12%+ of face. A 560-FICO first-time retailer applicant might pay $8,000-$12,000/yr and still be issued, often with co-applicant indemnity.
How is this different from your generic license bond calculator?
The generic license-bond calculator covers a flat rate matrix across many bond types. This Texas-specific calculator handles the Ch. 1201 category-to-face mapping (retailer / broker / installer / rebuilder), the 2-year TDHCA license cycle with proper 1.85x multi-year multiplier, the multi-location stacking issue, and the Sec. 1201.105 additional-security risk surcharge that drives real underwriting on this line.
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