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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 40 January 2024 F E A T U R E payments that are not usually reported to the credit bureaus can help demonstrate a borrower's ability to repay, even when they lack a traditional FICO score. Manufactured housing: Today's manufactured homes are not the mobile homes most people picture. Many resemble a traditional single-family home, while others take the shape of the ever-popular tiny homes seen on TV or social media. Manufactured homes are much more affordable than a site-built home, and help buyers build equity that they can use to move to a more tradition- al home down the road. Renovations: While many buyers, es- pecially first-time homebuyers, may not be able to afford a move-in ready home in the neighborhood they want, there are still options. Borrowers can consider renovations as a way to help them create the best home that fits their needs. This is especially helpful when inventory is low. Picking the worst house in the best neighborhood can give them an afford- able way to get into the market. GSEs: Fannie Mae and Freddie Mac have pilot programs for affordable options like these listed and participating can be a great way for lenders to start their affordable journey and reach new demographics in the process. Industry Impact A ffordable lending is clearly a benefit for borrowers. It promotes diversity and helps close the homeownership gap that exists today. It also gives borrowers a gateway into the market so they can start building equity and moving up the homeownership ladder. It does not stop there, however. Affordable products are also critical to individual lenders and the industry as a whole. As demographics change, lenders must keep up with their needs if they want to have a fresh pipeline of borrow- ers to serve. Branching into affordable lending not only helps grow business now but helps ensure their business will still be around in the years to come. Not only does affordable lending build a trusting relationship for repeat business, it also sets lenders up for additional refi- nances or referrals in the future. As the "traditional" borrower changes, lenders must rethink their traditional lending strategy. Regardless of where the housing market goes, there will always be borrowers that need affordable options and the lenders that start broadening their affordable products now will help set the tone for the future of the industry. Affordable lending is clearly a benefit for borrowers. It promotes diversity and helps close the homeownership gap that exists today. It also gives borrowers a gateway into the market so they can start building equity and moving up the homeownership ladder."