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.