Can Modernizing Manufactured Home Financing Help Solve Affordable Housing?

Manufactured homes have been unfairly stigmatized in the past there’s no argument that they are a source of high-quality, relatively low-cost housing, especially in rural areas 

A recent report (FinRegLab) explores the potential of modernizing federal insurance programs for manufactured home loans to combat the nation’s affordable housing crisis. Financing options for these homes remain limited, as many lenders focus on mortgage loans secured by both the home and the land it occupies.

This report highlights barriers to broader adoption of  “home-only” loans–financing for manufactured homes without attached real estate. The Federal Housing Administration (FHA) and Ginnie Mae have sought to expand this market through the FHA Title 1 insurance program, but outdated manual underwriting processes and inconsistent rules deter lender participation.

Modernizing these systems could significantly expand access to affordable housing, drawing more lenders to the market and ensuring a critical pathway to homeownership for underserved communities.