Are Modular and Manufactured Homes the Future of the Housing Market?
Affordability challenges are continuing to grip housing markets across the US – but manufactured and modular housing are still proving an effective way for prospective homebuyers to get a foot on the property ladder according to a top loan originator who specializes in the niche.
Brie Henley of Planet Home Lending told Mortgage Professional America that while the market for those property types had not been immune to the wider slowdown, activity remained robust, especially across South Carolina, Georgia, Florida, and Alabama.
“Business has slowed down a little. But definitely nothing compared to what (colleagues) have had to go through,” she said. “Manufactured, modular homes offer alternative, affordable living.
“You can still buy a brand-new home affordably with a manufactured home. Nowadays with rates on the rise, [housing] is almost un-affordable. This is an affordable alternative that people are seeking, that people want – and it’s very stable.”
Government increasingly focused on manufactured housing
With the Biden administration honing in on manufactured housing as possible means of reducing construction costs and accelerating affordable housing supply, organizations including the Center for American Progress have highlighted the space’s potential to improve market conditions and ease affordability challenges.
The federal government has recently announced plans to improve accessibility and affordability of manufactured homes, with around 22 million Americans currently estimated to live in those types of dwellings.
For mortgage professionals interested in developing their expertise with those product types, Henley said it’s essential to work with individuals and organizations with unparalleled experience and know-how about the space.
“You definitely want to make sure that you seek out the right company,” she said. “You want to have a company that knows the product, that has certain departments that can help you along the way. There’s a ton of steps throughout the process with manufactured homes – especially if you’re a one- time- close loan.
Strong relationships with builders and construction companies have proven a good way for Henley to deepen her understanding and expertise of the space throughout an 18 year stint to date in the mortgage industry.
Source: MPA (Mortgage Professional America)
