Manufactured Housing News

Persistent inventory shortage remains a major cause of the affordable housing crisis. But supply shortfall is just one facet of the problem. Although providing higher volumes of affordable properties could alleviate the crisis, it’s no longer enough to solve the current housing affordability challenges.

In addition, recent research has concluded that the existing supply shortfall and affordability constraints may lead to the "next" housing crisis. Left unaddressed, a new crisis could impede the social mobility of an entire generation, with a negative, wide-ranging effect on the U.S. economy.

Considering today’s socio-economic context, would it be wise for a bank or credit union to add new loan products like manufactured home loans to its portfolio?

Understanding the Root Cause of Supply Shortfall

The current shortage of homes is the direct result of the increasing levels of negative equity, which exploded after the housing bubble burst. Nowadays, many people are still unable to sell their properties because they owe more than their homes are worth.

The inability of a large number of homeowners to sell their homes has had a severe impact on the housing stock available on the market. Fewer homes for sale have lead to a “record short supply," followed by significant price increases. According to industry watchers, high housing prices are putting home ownership out of reach for more and more people.

Manufactured Home Loans: A Viable Answer to the Current Housing Crisis

The House Financial Services Committee has recently passed the Financial CHOICE Act. The newly proposed financial reform focuses on preserving the access to manufactured housing for all those seeking affordable homeownership alternatives. If the new Act is approved, millions of Americans will benefit from safe and affordable financing options for manufactured homes.

On a side note, some skeptics argue that facilitating consumer access to manufactured home financing solutions isn’t necessarily a silver bullet to closing the affordable housing gap. Then why are so many organizations, associations, government entities and private investors working collaboratively to provide more manufactured home loans?

Here is a simple explanation: consumption is an economic-growth engine that can resuscitate any industry sector.

Though restricted funding isn't the only contributor to the current housing crisis, improved access to manufactured home loans is an essential piece of the puzzle in addressing this challenge. Since most home buyers cannot afford to purchase a home with cash, making relevant financing options available from a higher number of sources is as important as increasing the housing stock.

An increase in the number of manufactured homes and financing alternatives will attract not only higher numbers of home buyers but also numerous private investors. This will boost both the manufactured housing market and the lending sector focusing on manufactured home loans. Given that manufactured home financing is about to become the next “big thing” in the lending industry, manufactured home loans can really make a huge difference in your portfolio.

At Triad Financial Services, we don’t believe that good investment decisions come from following the crowd. Instead, they come from careful thought, strategic research, a thorough analysis of the current markets and many years of experience. As one of the nation’s premier lenders for manufactured homes, we offer a wide range of lending solutions that can take your return on investment to a whole new level. For more information about our manufactured home loan programs for investors, feel free to give us a call at (800)-522-2013, Ext. 1287.