Manufactured housing has come a long way over the past 20 years. Some are absolutely beautiful and have great floor plans. The draw back is that it is still manufactured housing and finance options are limited. After the collapse of the housing market getting financing for this type of home was almost impossible. It has gotten better, but there are huge restrictions in place. Here is an article from the MReport that explains financing options in today’s market.
Understanding Financing Options for Manufactured Housing
Restrictive zoning and expensive financing are holding back the production of more manufactured homes. According to a recent study by the Urban Institute, helping people understand their financing options for manufactured housing (MH) could increase the demand for these homes as a viable affordable housing option.
In a report that looks at demystifying this segment of the housing market, researchers at the Urban Institute looked at how financing for (MH) differed from that for traditional housing units or properties.
It found four key differences. First, the market was served by a small group of specialized lenders, second, the average loan size for MH was small; third refinancing was rare and was usually done by general lenders. Therefore cash was the most preferred means of a transaction for MH, especially for used units.
Giving details about these four aspects of lending for manufactured homes, the report, which used the Home Mortgage Disclosure Act data to classify manufactured housing lenders, revealed that for the small group of specialized lenders serving this market, 90 percent of their single-family business came from manufactured housing. This compared with specialty lenders for whom 15 to 90 percent of business was for manufactured housing and general lenders for whom the manufactured housing slice of total lending activities stood at 15 percent.
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Is manufactured housing one of the options that you are considering?
Contact us and we can discuss the benefits and drawbacks of a new or resale manufactured home. With the proper information you can decide what avenue you would like to explore.
