Manufactured homes: are fewer lenders willing to lend?

The fact is that there are fewer manufactured homes being built and shipped and set up. This is especially so in the cities. While in the rural areas, there is still a high percentage of manufactured homes being financed, the percentages in the more populated areas seem to be going down. So are lenders wary of giving loans for manufactured homes? Considering that it isn’t really the high-income folks who are about to invest in manufactured homes and who would be looking for a manufactured home loan, this does sound plausible.

The other reason that cities are seeing fewer manufactured homes coming up is because the older parks where these houses were situated sometimes had a stigma attached to them so there was a kind of resistance to new parks.

There is also the argument that manufactured homes tend to go down in value with time. This however does not hold water. A home appreciates or decreases in value depending on its location. Other homes depreciate in intrinsic value too. If a manufactured home is in a good location, rest assured its value will appreciate.

Let’s face it, a manufactured home is an affordable home and if you were to take a look around, most of them have doubled in the last few years. So to say lenders don’t want to give out loans for manufactured homes would perhaps be stretching it a bit. Not when a new home could sell upwards of $60,000 plus the rent and the price of the land. Thanks to fewer manufactured homes coming up within the city limits, it could just be a perception. All things considered, manufactured homes still appreciate in value at the end of the day.

Entry Filed under: mortgage lenders