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Manufactured housing financing gap leaves more borrowers denied than site-built
The article cites Freddie Mac research that most Americans would consider buying a manufactured home, yet it says a 65.6% denial rate for chattel loans contributes to far fewer purchases.
HousingWire published an opinion arguing that manufactured housing faces systemic failures that worsen the affordable housing crisis, pointing to a lack of federal zoning preemption advocacy and the structure of chattel lending laws that it says may suppress production and favor consolidators.
The piece links housing affordability shortfalls to broader economic costs, citing estimates from McKinsey, the National Low Income Housing Coalition, and researchers at the National Bureau of Economic Research that the lack of affordable housing near where it is needed costs the U.S. economy about $2 trillion annually in lost GDP.
On demand and purchasing outcomes, HousingWire references figures suggesting that millions of Americans shop for manufactured homes online, but comparatively few buy new ones, and it highlights financing barriers for chattel loans. The article says borrowers seeking personal property loans face a 65.6% denial rate versus 8.8% for site-built homes.
HousingWire also points to higher borrowing costs, stating that personal property loans average 9.24% interest compared with 6.63% for traditional mortgages, creating a financing gap it argues helps explain the gap between interest and completed purchases.