offer a realistic possibility of homeownership for many lower-income buyers. But financing options are limited and expensive, which has sparked calls for reform.
These homes cost less than half as much as the estimated $94-per-square-foot national average for new site-built housing, the report found. A new, single-section manufactured home sold for an average of $43,000 in the first half of 2014, excluding transport and siting costs.
According to the Times’ coverage of a report issued by the Consumer Finance Protection Bureau,
most owners of manufactured homes pay much higher loan rates. Loans for the purchase of these homes are concentrated among a handful of lenders, the largest of which are 21st Mortgage Corporation and Vanderbilt Mortgage and Finance, both subsidiaries of Clayton Homes, a manufactured-housing provider and a division of Berkshire Hathaway.
Part of the difficulty financing a manufactured home arises from the fact that it located on a leased lot. Think of obtaining a loan on a car. That’s exactly the same with a manufactured home. These loans are more expensive because the lender has a lien on something movable. As the Times points out,
If they own the lot under the house, the property may be titled as real property, making it eligible for a mortgage.
Want to know more? the full article is here.
For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.
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