Modernizing Manufactured Home Financing: Data, Automation and Program Improvements to Scale Affordable Home Ownership

This report explores the potential of modernizing federal insurance programs for manufactured home loans as a strategy to combat the nation’s affordable housing crisis. Manufactured homes, often unfairly stigmatized, provide high-quality, cost-effective housing, especially in rural areas. Yet, financing options for these homes remain limited, as many lenders focus on traditional mortgage loans secured by both the home and the land it occupies.

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Administration (FHA) and Ginnie Mae have sought to expand this market through the FHA Title I insurance program, but outdated manual underwriting processes and inconsistent rules deter lender participation.

Key findings emphasize the need for automation, harmonization, and better performance data to attract more lenders. Recommendations include developing an automated underwriting system, aligning loan requirements across programs, and improving access to market data to reduce risk perceptions.

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.

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