Our executives enjoyed attending the Manufactured Housing conference earlier this year. As one of the only mortgage loan origination systems that can easily originate loans made for the purchase of these homes, we have a lot of friends in that industry.
That’s one of the reasons we often advise our lender partners to consider manufactured housing in their loan origination business.
But there are other reasons to consider earning more revenue in this sector.
The Rising Demand for Affordable Housing
With the skyrocketing costs of traditional single-family homes, many consumers are turning to more affordable housing alternatives. Manufactured housing, which presents a valuable opportunity for mortgage lenders, fits the bill for many of them.
The demand for affordable housing is at an all-time high. With the median price of single-family homes becoming unattainable for many, consumers are seeking cost-effective alternatives that still offer the stability and benefits of homeownership.
Manufactured homes, which can cost significantly less than traditional homes, provide a viable solution. These homes are built to stringent HUD standards, ensuring quality and safety.
Modern manufactured homes are aesthetically pleasing, energy-efficient, and durable, making them an attractive option for budget-conscious buyers. As a result, the market for these homes is expanding, and lenders who offer financing for manufactured housing can tap into this growing demand.
All of this makes the sector shine as a source of revenue when most lenders need it the most.
Why More Lenders Are Lending in This Sector
Manufactured homes appeal to a wide range of consumers, including first-time homebuyers, retirees, and those looking to downsize. By offering financing options for these homes, lenders can cater to the needs of diverse market segments, enhancing their customer base and strengthening their market position.
Financing manufactured homes also contributes to community development and revitalization. Manufactured home communities offer an affordable and sustainable housing option that can help address housing shortages and promote economic stability in various regions. By supporting these communities, lenders can play a crucial role in fostering inclusive and resilient neighborhoods.
Moreover, many modern manufactured home communities offer amenities and services that enhance the quality of life for residents. These communities can provide a sense of belonging and stability, which is particularly important in times of economic uncertainty. Lenders who support the growth of manufactured home communities are investing in the social and economic well-being of the areas they serve.
Lenders who include manufactured housing in their portfolios can diversify their risk and potentially achieve higher returns. The affordability of these homes makes them attractive to a broader segment of the population, increasing the pool of potential borrowers. Furthermore, with more consumers seeking affordable housing options, the demand for manufactured home loans is likely to remain strong, providing a steady stream of business for lenders.
Find out more about MortgageFlexONE, the only unified origination and servicing platform in the industry. We have the functionality lenders need, in this and every sector. Visit MortgageFlex or reach out to John McCrea, today at 1-860-460-7418 for a live demo.
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