Could 30 Year Mortgages be Available For Manufactured Homes Soon?

Manufactured home loans, manufactured home financingGetting a loan for a manufactured home can be difficult, but new 30-year financing plans could make it easier. Fannie Mae is launching  a financing program in New Hampshire that could be a starting point for government-sponsored enterprises (GSE) to offer similar loan terms nationwide.

The GSE is working with the New Hampshire Housing Finance Authority on the program to provide loans to manufactured homes located in resident-owned communities, or ROC’s.

The program takes advantage of a New Hampshire law that requires all manufactured homes, whether located on owned land, in an ROC, or an investor-owned park, to be titled as real property instead of chattel.

Chattel loans classify manufactured homes as personal property, rather than real estate. With the 30-year real estate loans, home owners could get up to a 95% loan-to-value ration with private mortgage insurance.

For homeowners in ROC communities, these loans are great news for curb appeal. Most often, people are more likely to become invested in their homes if they are staying long-term.

In an ROC, residents are responsible for the maintenance and upkeep of the community. Since homes eligible for financing are located in ROCs, Fannie Mae has more comfort from a risk-management perspective, since the borrower is less likely to walk away is there’s a problem.

 

Although this is a great step forward for manufactured housing financing, ROCs make up just 5% of the communities nationwide. Right now, the Manufactured Housing Insistute is focused on making financing available to anyone seeking to purchase a manufactured home, no matter how they are titled or where the sit.

Learn more about the program, and how the MHI plans to bring loans to all potential manufactured home buyers in the future at National Mortgage News. 

 

 

The Bipartisan Bill That Could Make Manufactured Home Financing Easier

Manufactured homes for sale, mobile homes for sale, buying manufactured homes, buying homes, home loans, manufactured home loans
New manufactured home for sale, Ocala, FL.

In today’s hot real estate market and struggling economy, purchasing a home is a daunting task. That’s why more buyers than ever before are turning towards manufactured housing as an affordable solution.

New construction manufactured homes are built to impress, with modern stylish features and energy efficient standards that rival that of comparable site-built homes.

That said, manufactured homes were traditionally difficult to finance. A bipartisan group of senators recently introduced a bill that would protect the ability of manufactured home buyers to buy, sell and refinance homes.

The Preserving Access to Manufactured Hosuing Act, seeks to address the 2014 Consumer Financial Protection Bureau’s guidelines to expand the range of loan products considered high-cost mortgages under the Home Ownership and Equity Protection Act.

In layman’s terms, the guidelines would label many small-balance manufactured home loans “high-cost”, which results in increased lender liabilities. That means, lenders are less likely to have loans available for those seeking to purchase manufactured housing.

The bill hopes to put an end to the one-size-fits-all regulations that don’t recognize the unique nature of manufactured housing loans, according to Pat Toomey (R-PA), a sponsor of the bill.

The bill’s sponsors hope it will help families have access to affordable housing, that might otherwise be prevented under current legislation. Luckily, new lenders like Fannie Mae, Freddie Mac and Wells Fargo are looking to provide manufactured housing loans.

In 2015,  Wells Fargo hired two experienced manufactured housing executives to help expand into the industry, Matt Krasinski and Lew Grace of GE Capiutal Real Estate. Krasinski worked as the associate director for North American lending, responsible for originating loans for manufactured homes and RVs. Grace was the head of manufactured home communities lending and investments.

This comes after Wells Fargo acquired a $9 billion portfolio of commercial real estate loans from GE Capital Real Estate, a portion of which is MHC-focused. The national bank is looking to serve customers in the growing manufactured housing industry.

“Expanding our balance sheet lending in this sector, combined with Wells Fargo’s existing product capabilities, provides a full-spectrum of solutions for customers in the manufactured home communities industry,” says Mark Myers, head of Commercial Real Estate at the bank.

It’s exciting to see positive opportunities in the manufactured housing industry. At Newby Management, we are excited to offer new 2017 homes in many of our communities. Making lending easier for residents will give more people the opportunity to purchase brand new homes.

Whether you’re purchasing a home that has been loved or one that’s new, Newby Management wants to help. We’re here to assist you on this exciting journey. We encourage you to visit our realty website www.NewbyRealty.com to see what we have available now.

Get personal help from our sales team at sales@NewbyRealty.com, and speak to our expert in the field. We can help you find the perfect home in one of our amazing communities.

Fannie-Freddie Look to Provide Manufactured Home Financing

Mobile homes, mobile home financing, mobile home loans, low income financing, manufactured home financing, Fannie Mae, Freddie Mac As more buyers turn to manufactured housing, more lenders are looking into offering financing for the homes. Fannie-Mae and Freddie-Mac released draft plans that show they may soon provide financing to buyers of manufactured homes.

The proposal was outline as part of plans to help affordable housing challenges in America. Mortgage firms see these programs as a way to help low-income buyers become home owners.

While many see this a progress in the affordable housing crisis, some are concerned about the risks involved with mobile home lending. The concerns include the homes sitting on leased land and their tendency to depreciate quickly.

Those fears, while valid, are no longer true for many manufactured home owners. This is especially true of those purchasing new manufactured homes. These homes are comparable in quality and pricing to similar site-built homes and offer similar value as well.

The U.S.-controlled companies need to get sign-off for the pilot programs from their regulator, the Federal Housing Finance Agency.

Learn more about this proposal and the affordable housing challenges.