Rocket Mortgage rolls out new loan options for manufactured homes

rocket mortgage currently offers traditional loan options for buyers looking to purchase or refinance manufactured homes.

Borrowers can use the loans to finance manufactured homes with a down payment of as little as 5% for primary homes and at least 10% for second homes, lenders said Wednesday. Cash out refinances are available for primary homes, and rate and term refinances are available for primary or second homes.

“Over the past year, we had about $12 billion in sales of manufactured homes. CEO) said in a statement.

Manufactured homes have improved in quality over the years, making them an affordable option for home buyers. same as the material used. However, manufactured homes are about 30% cheaper than homes built on site. report From the Manufacture Housing Institute.

Manufacture homes are built in indoor homebuilding facilities and delivered to land selected by the owner. Once the house arrives on site and is placed on a permanent foundation, it becomes real estate and can be financed through a mortgage.

However, not all manufactured home owners own land. The mortgage borrower may or may not own the land on which the property is located, but the personal property loan remains in place even if the property is moved off-site. But the house itself is a depreciating asset, making it difficult for owners of manufactured homes to build equity and intergenerational wealth.

About 17.5 million Americans have a personal mortgage, which accounts for 42% of the manufactured market, according to the report. Consumer Financial Protection Bureau (CFPB). Currently, the GSEs that support mortgages for traditional site-built homes are: do not finance movable propertyIn other words, consumers with personal property loans do not enjoy the consumer protections of homeowners with traditional mortgages.

Rocket Mortgage more than doubled any lender’s refinancing volume in 2021, although lender mortgage originations declined from $53.8 billion in Q1 to $34.5 billion in Q2. Lenders are shifting their focus to buying mortgages and are introducing products to appeal to more borrowers.

In September, the lender said,inflation busterThis will reduce a homebuyer’s monthly mortgage payment by 1 percentage point during the first year of the loan.

Recently, rocket company launched a loyalty program that offers discounts on closing costs when buying a home through its subsidiary, Rocket Mortgage.

Rocket will report its third quarter results on Thursday, November 3rd.

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