American Financial Resources is expanding its manufactured housing finance options. The lender just started offering conventional financing for manufactured homes via the new Fannie Mae initiative, MH Advantage.
MH Advantage is designed to promote financing for manufactured homes comparable in quality and features to traditional single-family homes to help combat the affordable housing shortage in the U.S.
Qualifying homes have features like drywall, energy efficient appliances, porches and other outdoor improvements that would allow the home to blend seamlessly into a typical single-family housing development.
“With a shortage of affordable single-family homes in the U.S., manufactured housing is increasing in popularity,” American Financial Resources Executive Vice President Bill Packer said in a statement.
“AFR continues its commitment to the growing manufactured housing community, and we are pleased to add Fannie Mae’s new MH Advantage program to our portfolio of financing options,” he added.
MH Advantage allows qualified borrowers to secure financing from AFR with a down payment as low as 3%. These loans feature cancellable mortgage insurance and can also be used in tandem with other Fannie programs like HomeReady or HFA Preferred mortgages.
“The goal of this initiative is to help bridge the gap in affordable housing by encouraging more consumers to consider manufactured homes as an alternative to traditional single family ‘site built’ homes,” Packer said.
“AFR is proud to be among the first to offer any loan program that helps loan originators get borrowers into a home with features they want, at a price they can afford.”
[Correction: this article has been corrected to reflect that AFR is continuing, not beginning, its manufactured housing finance offerings. AFR has been financing manufactured homes for over a decade.]