Fannie Mae today joined with nine lenders to provide purchasers of manufactured homes nationwide access to affordable 30-year mortgage financing with down payments as low as 5 percent.
The low-cost financing will be available through a network of lenders that have demonstrated the high levels of expertise necessary to understand the property, titling, appraisal and servicing issues associated with manufactured homes, according to a press statement.
The participating lenders include AgFirst Farm Credit Bank; Flagstar Bank; GMAC Manufactured Housing; Huntington Mortgage Group; Origen Financial; RBC Mortgage; 21st Mortgage; Vanderbilt Mortgage; and Washington Mutual.
Fannie Mae also pledged to work with its lender partners over the next year to develop a pilot effort to save consumers at least 10 percent of the cost of buying and financing a manufactured home.
Fannie Mae invests in manufactured housing as part of its mission to expand affordable housing by providing liquidity to a market segment that is crucial to many Americans of modest means. However, in recent years, the manufactured housing industry has undergone many changes, according to a press statement. Shipments of new homes are at their lowest levels in decades and many large manufacturers and retailers have exited the market or declared bankruptcy, largely due to high delinquencies and loan losses. Fewer financing options exist today for both new and existing manufactured homes. Additionally, industry sources estimate that the number of repossessed and foreclosed manufactured homes is at record high levels.
Fannie Mae operates pursuant to a federal charter and is the nation’s largest source of financing for home mortgages.
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