With the price of housing continuing to rise today, some consumers may soon be priced out of owning a home. According to Redfin, places like Columbia, SC, home prices increased 24% in late 2019; Delray Beach, FL, prices went up by 21%; Detroit, MI, rose 17%; Pittsburgh, PA, up by 15%; Boise, ID, up 12%. The list of area increases goes on and on.
What does this increase mean for renters, first-time homebuyers, or anybody looking to purchase a new home to either invest or lay down roots? Will only the affluent afford to buy a home? Is the American dream of owning becoming a pipe dream?
There are still options for just about anybody looking to become a homeowner. One of those options is manufactured homes. More than 22 million families are homeowners today because of manufactured housing – and that number is growing. The average sales price of a manufactured home is $84,400, making a manufactured home a solid option.
Today’s manufactured homes are available in a vast range of floor plans with a host of add-on construction features, including garages, decks, and porches. Additionally, the construction of this type of housing built is highly regulated by HUD and any local building standards – unlike mobile homes.
Manufactured homes allow everyone from working families to single parents and retirees to have a place to call home. The market needs affordable housing options at prices residents can maintain – which means people not paying more than 30% of their income on housing costs. Manufactured housing is a viable solution not only to make housing affordable, but to provide the dream of homeownership.
Again, with 22 million people already residing in these homes, many more will follow as rent and home prices continue to increase. Putting together affordable loan packages to offer the growing number of consumers can only bode well for a financial institution’s revenue growth – as well as enhancing its value to would-be homebuyers.
Here are some parameters/highlights to create manufactured home loan packages:
- 620 minimum credit score
- Primary Residence or Second Home
- Purchase and Limited Cash-Out Refinance
- LTV equal or less than 80%
- Double-width manufactured homes only
- Minimum of 600 square feet and at least 12 feet wide
- Must be attached to permanent foundation system
- Additional underwriting conditions apply
Housing comes in all shapes and sizes today. With manufactured homes gaining steam in today’s real estate market, it opens the door not only to benefit the member looking to attain the American dream of being a homeowner – no matter their economic status, but it also benefits the financial institution looking to create a new revenue stream and value proposition for its audience.