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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 46 July 2024 F E A T U R E S T O R Y Homebuyers today might be surprised with the amount of square footage and amenities that can be packed into a manufactured home." —Dave Howard, EVP of Origination Services, ServiceLink as they are earlier on in their careers— are faced with a choice: enter the highly competitive buyers' market where homes in their price range likely do not come with all the modern amenities and make upgrades themselves, if they can afford it, or buy new. Depending on their situation, manufactured housing could provide that opportunity to purchase a new build at a relatively affordable price. Energy Efficiency T he cost of a new home does not just come with the initial downpayment and monthly mortgage bills. Operating costs are another area buyers need to con- sider. How much are they able to afford in upkeep costs? When it comes to buying a newly built manufactured home versus a likely older traditional home that buyers would get at a similar starter home price, there's an advantage to new. Replacing the HVAC unit or buying a new hot water tank likely will not need to be done for several years in a new home. According to Fannie Mae, the median all-in monthly cost for a manufactured home is $925, or $675 less per month than the owners of a site-built home paid. Newer homes also typically come with more energy-efficient appliances, which will help owners save money in the long run. For Gen Z and millennial homebuy- ers, it is important to consider all costs, and what it will take to keep up with a home prior to purchasing. A Quicker Build W ith a more streamlined process, manufactured homes also are quicker to build than traditional site-built homes. Manufactured homes are con- structed in factories and do not experience the weather and seasonal delays that a site-built home may be subject to. While the speed varies based on a va- riety of circumstances, it is estimated that a manufactured home can be built in 40% of the time that it takes for a site-built home to be completed. Fannie Mae even cited one manufactured home producer as say- ing it only takes about six production days to complete a typical home build. Delivery and installation add additional time, but it is still feasible for a homeowner to move in within 90 days. A site-built home, on the other hand, can take up to six months to build, the Fannie Mae study found. Modern Amenities A ccording to ServiceLink's 2024 SOHBR, Gen Z and millennials know what they are looking for in a home. Gen Z's biggest desire is a larger house with more space, and millennials want a home with plenty of technology upgrades and amenities. Homebuyers today might be sur- prised with the amount of square footage and amenities that can be packed into a manufactured home. For example, some manufactured home builders offer models with four to five bedrooms and 2,000-plus square feet to move around in. What's more, these home types also offer modern amenities similar to what can be found in site-built homes. Today's manufactured homes are not what you remember from your grandma. They often come with a choice of layout. Some even offer appli- ance upgrade packages, open floor plans, and vaulted ceilings. Moving into a manufactured housing community can provide even greater offerings. Sometimes there are amenities including community pools, fitness cen- ters, or playgrounds. Why Lenders Are Taking Notice F or lenders, a difficult, competitive mar- ket means it is time to get creative. That could include offering financial incentives to attract borrowers or finding ways to bring in new customers. Lenders have to find a way to either be more successful selling in the market they are already in, or expand and find new markets and new customers. In today's market, lenders are doing both, and the proliferation of manufac- tured housing provides another avenue not just for borrowers, but also for lenders as an area of great opportunity.