Why Are Credit Unions Offering Loans for Manufactured Homes?

Why would credit unions be interested in offering loans for manufactured homes? The answer makes sense when you think about it.

When in the market for a new home, many people are looking to manufactured homes. They are attractive and low-cost. Lending for these factory-built dwellings is different in some ways than a traditional mortgage. According to CFED, “financing manufactured home purchases and refinances can be a viable and effective community development activity for credit unions”. Thus, more and more credit unions have stepped up to answer the call, offering lending for manufactured houses.

Credit Unions prefer helping members over making profit.

Credit Unions have a fundamental approach to building wealth by building their local community. Banks lend money near and far for the sole purpose of turning a profit on each transaction. Credit unions, however, believe that their growth depends largely on the growth of their local community. What is good for the neighborhood is good for the credit union. Thus, if manufactured houses are in demand in an area, local credit unions want to offer loan products to meet those needs.

Manufactured Home Loans meets demand for smaller home loans.

Ever since the financial crisis in 2008, consumers are demanding access to smaller, more affordable home loans. According to an article published by Wired, housing experts confess that “a family that makes $100,000 can’t afford to buy a house” in many cities. The new ‘Duty to Serve’ rule from the FHFA has allowed for more affordable originations of smaller loans. This fits perfectly for manufactured homes. Consumer demand for affordable home loan solutions now has an answer.

Manufactured Home Loans Diversify the Credit Union’s portfolio.

Although Credit Unions are not-for-profit, they also cannot operate at a loss. This means investment diversity matters to them, too. A diverse lending portfolio is the best strategy to mitigating risk and raising profits for credit unions. Manufactured home lending provides a nice alternative loan product to traditional mortgages.

 

Original Source: Triad Financial Services


The Magnificent Seven – The home that’s 7 floorplans in one!

When you’ve built homes as long as Oak Creek (45 years!), you hear a lot of common reasons for customers not falling in love with a particular model.  Often, the heart of the home is great, but the rest is just not quite right.  By the heart of the home, I’m talking about the kitchen, living room and master suite.

With the new Magnificent Seven model of Oak Creek Homes, this problem becomes a thing of the past!  You see, all seven floorplans that constitute the Magnificent Seven have the same core of kitchen, living room and master suite…literally identical.  What’s different with each is the size and additional bedroom and living room configurations.

Need a fourth bedroom?  No problem.  Need a second living area?  Gotcha covered.  You want a 3rd bath?  It ain’t nuthin’ but a thing.  And with Oak Creek’s amazing 3D touring software, you’ll feel like you’re inside of any of the seven configurations while viewing the one at your local dealership.  Call or email today and set an appointment to see the amazing new Magnificent Seven at Oak Creek Homes!