At the end of November this year, FreddieMac announced the “ChoiceHome” conventional loan for manufactured housing. This comes in the wake of many areas across the nation facing a housing shortage.
You can read the full article here. In short, today’s Manufactured homes are of a higher quality than ever before but can be purchased at half the price of a conventional home. This will enable more Americans to be able to afford their own homes.
The ChoiceHome loan will not be available immediately as Freddie Mac is conducting a 2 year pilot on factory built homes. These homes will have permanent foundations, pitched roofs and energy saving features. Modular homes fit this bill, like the one pictured at the top of this article. Mobile Homes unfortunately will not, as they can be attached to a trailer and have wheels.
How it will work
They plan to treat ChoiceHome financing the same as single family conventional loans. These factory-built homes must meet certain criteria in order to be “ChoiceHome”certified and thus qualify for this type of financing.
Manufacturers will need to also follow HUD guidelines to in order to obtain eligibility. While lenders will also have to follow local and state guidelines for manufactured housing titled as real property.
The Bottom Line
If you have been thinking about buying a new home but just can’t afford what is out there, this might be a good option for you. It will take some time to put the plan in place but that only leaves you plenty of time to start searching and get your finances in order.