The new mortgage program is for manufactured homes with comparable features to traditional single-family homes.
These homes typically include custom amenities, such as attached garages, upgraded kitchens and bathrooms, energy efficient appliances and architectural features that help the property blend into an existing community or neighborhood.
Qualifying borrowers can get these loans with a down payment as low as 3%. Interest rates for these loans are lower than traditional mortgages. They feature cancellable mortgage insurance and can also be combined with Fannie Mae’s HomeReady mortgage for qualifying customers.
“There is an increased interest in manufactured housing throughout the U.S. because of current housing shortages, both in the resale of existing homes, and future inventory based on forecasts of new housing starts,” says Mary Ann McGarry, president and CEO of Guild Mortgage, in a release. “Guild has been one of the top originators of loans for manufactured homes for some time and we are pleased to offer this new MH Advantage program with Fannie Mae. It comes at a critical time when many potential homebuyers are priced out of the market. This gives them a high-quality option with low down payment and a lower interest rate.”