Unlock Growth with Manufactured Housing

When correspondent lenders talk about expanding purchase volume, the conversation usually turns to conventional products, government loans, or emerging non-QM opportunities. But there’s another option that's often underappreciated and sometimes misunderstood: manufactured housing. 

If you’re not paying attention to this market, you might be leaving volume and valuable business opportunities on the table. 

Not the Mobile Homes You Remember 

It’s time to separate outdated perceptions from today’s reality. Manufactured homes are no longer synonymous with single-wide trailers or parks at the edge of town. Today’s models are HUD-code compliant, often multi-section, and increasingly indistinguishable from site-built homes in terms of structure, layout, and curb appeal. 

They’re also energy efficient, equipped with modern kitchens and open-concept designs, and placed on permanent foundations. Many even include garages and porches. Simply put, they’re homes buyers want and can afford. 

Why This Market Matters Now 

The affordability gap continues to grow. Home prices remain elevated, and in many parts of the country, there simply isn’t enough entry-level housing to meet demand. Manufactured housing addresses that gap. 

For lenders, this translates into more than just a public good. It’s a practical way to grow purchase production. Manufactured homes can be a viable option for creditworthy buyers priced out of the stick-built home market. These buyers often live in rural or exurban areas where land is available but construction costs are high. Financing a manufactured home on owned land may make homeownership more achievable. 

While this segment is growing, relatively few lenders actively pursue it. That’s good news for lenders who want to expand volume without competing in oversaturated traditional channels. 

What’s Driving Uptake 

Several market forces are aligning to drive renewed interest in manufactured housing and lenders who engage now have an opportunity to get ahead of the curve. 

Migration patterns: More buyers are leaving dense urban cores in search of affordability, space, and a different quality of life in exurban and rural areas. Manufactured housing is well positioned to meet that demand, especially in markets with buildable land but limited new construction. 

Inventory scarcity: With site-built home prices averaging more than $150 per square foot, manufactured homes at roughly $85 per square foot offer a compelling alternative. In many regions, they’re one of the few options available near the median price point. 

Market share and growth: Manufactured homes make up about 9% of all occupied housing in the U.S. and account for over 10% of new single-family housing starts, according to the U.S. Census Bureau and the Manufactured Housing Institute. That share is expected to grow as affordability challenges persist. 

Policy momentum: Several states, including New York, Illinois, and Massachusetts, have enacted CRA-like regulations for nonbanks. Manufactured home loans — because of their affordability — may help meet those emerging compliance expectations. 

Business expansion: Loan professionals who understand how to finance manufactured homes are in high demand in markets where affordability is top of mind. With the right knowledge and support, lenders can grow volume and reach new customers without competing in oversaturated channels. 

In a purchase-driven market, manufactured housing offers correspondent lenders a strategic way to expand production and build lasting business relationships. 

Program Innovation Is Making It Easier 

In recent years, both Fannie Mae and Freddie Mac have introduced programs that elevate the status of manufactured homes. 

Freddie Mac’s CHOICEHome® treats eligible manufactured homes like site-built properties for underwriting and appraisal purposes. This gives lenders access to conventional execution and provides buyers with affordable financing options that look and feel familiar. 

Fannie Mae’s MH Advantage® offers pricing incentives for homes that meet certain design and installation standards, again supporting affordability and expanding access. 

Meanwhile, the USDA has options for lenders serving rural markets. While the program includes specific criteria (such as foundation certification and manual underwriting), it can help lenders connect with homebuyers who might otherwise be overlooked. 

Combining MH with Affordable Loans 

Correspondent lenders can amp up affordable lending by pairing  manufactured home loans with affordable loan programs. Fannie Mae’s HomeReady® and Freddie Mac’s Home Possible® offer low down payment options and reduced mortgage insurance for qualifying buyers. Programs like MH Advantage® and CHOICEHome® provide additional benefits when homes meet certain design and installation standards.  

Many down payment assistance (DPA) programs can also be used with manufactured homes titled as real property, helping make homeownership more attainable in today’s market. 

The Barriers Are Surmountable 

Let’s be clear: manufactured housing isn’t plug-and-play. Appraisals require Form 1004C. Documentation must confirm HUD compliance. Foundation certifications may be required. And lenders must understand the difference between eligible real property and ineligible chattel loans. 

Once you gain that knowledge, it becomes an advantage. With fewer competitors operating in this space, lenders who invest in the process can stand out. The key is having well-trained teams, standardized processes, and strong partners, like Planet. 

Looking Ahead 

Manufactured housing may never dominate your pipeline, but it doesn’t need to. Even modest growth in this product type can contribute meaningfully to overall volume. It can also open doors to new business relationships with professionals who serve markets where manufactured homes are in demand. 

More importantly, it aligns with the needs of today’s housing landscape: affordability, flexibility, and accessibility. 

Manufactured housing isn’t a fallback option. It’s a forward-looking strategy and one that deserves a spot in your business plan. 

Are you currently offering manufactured home loans in your correspondent channel? What challenges and successes have you seen in this space? Let us know in the comments. We’d love to hear your perspective.