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Posts Tagged ‘rural areas’

Nearly 500,000 Vets Live in Manufactured Homes

November 21st, 2013 Comments off

MHProNews has learned from dailyyonder.com, while an estimated 470,000 rural veterans live in manufactured homes (MH), they are less likely to live in MH than the rural population as a whole. However, twice as many rural veterans live in MH than veterans as a whole nationally. While rural areas have fewer homeless veterans than urban areas, veterans are often a greater percentage of the rural homeless population. Many veterans are finding housing unaffordable. Households that spend more than 30 percent of their income on housing are considered cost-burdened. Veterans who rent and live in rural areas are twice as likely to be cost-burdened than homeowners—37.7 percent compared to 18.8 percent of homeowners. Just under 50 percent of veteran renters over 55 are cost burdened compared to 26.6 percent of those veterans in their thirty’s.

(Photo credit: Van Go/leoncountytoday)

Rural Mortgage Borrowers Hit Harder than Urban Brethren

October 28th, 2013 Comments off

While mortgage lending in rural areas expanded last year as did as did overall lending, rural applicants are more likely to be denied and to pay higher interest rates than urban borrowers. While 21 percent of rural applicants were denied a loan last year–some 500,000– the overall rate for the U. S. was 18 percent. Forty percent of the rejections were for poor credit, according to dailyyonder.com, and six percent of rural mortgage originations were for high-cost loans as opposed to three percent at the national level. This is attributable in part to the prevalence of manufactured homes in rural areas which are financed with personal property, or chattel, loans, which have shorter terms and higher rates. Approximately 37 percent of rural manufactured home loans were classified through the Home Mortgage Disclosure Act (HDMA) as high-cost loans, MHProNews has learned.

(Image cedit: texaslendingtoday)

Affordable Rentals Rare in Rural America

August 14th, 2013 Comments off

Rapoza Associations reports nearly 30 percent of all rural households, which covers some 7.3 million families, are either unaffordable, overcrowded or substandard. Over 47 percent of all rural households are spending more than 30 percent of the their income on rent, which classifies them as cost-burdened; and almost 50 percent of those households pay over 50 percent of their income on housing costs. While costs related to housing are typically less in rural areas, rates of poverty are more than the national average. HousingWire reports rural renters have median incomes of $25,833, 35 percent below that of the average rural resident and 48 percent less than the national median income. In addition, MHProNews has learned 96 of the country’s poorest counties are in rural communities.

(Photo credit: ruralpovertyareas)

Council Calls for more Manufactured Housing Communities

July 29th, 2013 Comments off

City councilors in Campbell River, British Columbia, Canada are encouraging the creation of manufactured housing communities and have set up a study to identify properties that might be developed as a viable and affordable housing option. Prompted by petitioners who are being forced out of communities where owners are seeking to redevelop the land, the city’s Official Community Plan (OCP) wants to keep the communities in the city where seniors and young people can take advantage of lower cost housing, and out of rural areas. Councilor Andy Adams says, “We certainly recognize that there is a very valuable and important need of manufactured home facilities in our community, and also recognizing the number that are being displaced, particularly over the last couple of years, and more pending.” As courierislander tells MHProNews, planning services manager Paul Stanton, noting the ill will associated with the poor quality factory-built homes of the 1950′ and 1960s, says, “Campbell River still has a few of those homes in existence that no doubt have outlived their usefulness. (But) the standards have changed dramatically. They don’t carry the same stigma they used to carry 30 and 40 years ago.”

(Photo credit: castanet–Sunrise Village MHC, British Columbia, Canada)

Remote Southwest Draws Manufactured Housing

May 14th, 2013 Comments off

The ABQJournal tells MHProNews that the Farmington, New Mexico metropolitan statistical area (MSA) has the highest percentage of manufactured housing as part if its inventory of any metro area in the U. S., at 32 percent. Two-thirds of the county’s 128,529 residents live outside the city in rural areas, including the Navajo Nation, where manufactured housing is the most cost effective in such a remote area of rugged terrain, says realtor Theresa McBee. Tom Schadler of Clayton Homes in Farmington, noting many of the homes sold go to Indian Reservations, says, “Price per square foot is a major factor,” he said. “A lot of ours will be under $40 a square foot. A high-end one might be $60 a square foot, which is still half what a stick-built (or conventional) home costs.” Yuma Ariz. is second with 29 percent of the housing being factory-built, and third place is Havasu/Kingman, Ariz at 26.7 percent. Interestingly, Farmington shows up again in the Census Bureau study of MSAs for having the third most one-room housing units, trailing Manhattan, Kan. and Myrtle Beach, SC.

(Image credit: manufacturedhomesource–Santa Fe homes, NM)

Both Parties in Congress Favor Revising Dodd-Frank

April 24th, 2013 Comments off

MHProNews has learned from the Wall Street Journal there is rare bipartisan support in Congress to roll back a provision in the Dodd-Frank Act that could produce a decline in manufactured home lending, thereby hurting builders, lenders, and owners. A part of Dodd-Frank sets a threshold for interest rates beyond which loans are considered “high cost” by the Consumer Financial Protection Bureau (CFPB) and do not offer legal protections. Many of the loans for manufactured homes fall into this category because they carry interest rates above ten percent, and since purchasers of manufactured homes generally have lower incomes, they are more likely to default. In addition, manufactured homes may lose value over time in some scenarios, and if the home goes into foreclosure the lender will recover less money. Tim Williams, CEO of 21st Mortgage, the largest lender to MH buyers, says a third of his loans from 2010 to 2011 would have landed beyond the CFPB’s threshold. He says the bureau’s restrictions will harm those of modest means in rural areas and will also make it more difficult for individuals to sell their homes. House and Senate lawmakers are working on legislation to make fewer loans “high cost.” Sen. Sherrod Brown (D-OH), noting manufactured homes represent a different consumer base than buyers of traditional homes, says the measure he will introduce would “bring regulations for manufactured housing in line with their place in the market.” Joe Stegmeyer, CEO of Cavco Homes, Inc., the second largest producer of manufactured and modular homes, noting companies are already having tough time, says, “If we see that financing dwindle…it certainly will mean closure of a number of plants.”

(Image credit: bloombergbusinessweek)

Homeownership Lending to be Maintained in Rural Areas

April 19th, 2013 Comments off

As the population growth in rural communities is challenging the parameters set by the U. S Dept. of Agriculture’s rural housing programs, Senators Tim Johnson (D-SD) and Pat Roberts (R-KS) have proposed a bill to raise the population cap from 25,000 to 35,000 so homeownership continues to be available for low-income households. Sen. Johnson said, “Providing these loans, grants, and loan guarantee programs helps younger generations stay in the communities they’re from, and ensures rural housing markets have access to private credit.” As HousingWire informs MHProNews, a Senate bill similar to this one last year was not approved by the House, but Congress recently approved a bill to extend current rural housing until Sept 30, 2013. The proposed bill will extend funding an additional seven years.

(Image credit: viewpoint)

 

 

Modular Homes Housing the most Vulnerable

November 26th, 2012 Comments off

Under a program to combat poverty and hunger in rural areas, AllAfrica reports the provincial governor of Kwanza Sul, Eusebio de Brito Teixeirain, of Angola, has dedicated the first 12 of 50 modular homes to impoverished residents of Kassongue district. Beneficiaries of the new homes were identified with the help of traditional and civil authorities. MHProNews has learned the shortage of adequate housing is acute for many of the most vulnerable citizens in this country in southwest Africa.

(Image credit: wonderclub)

Oil and Water Combo Feeds Factory-built Housing

October 4th, 2012 Comments off

The MinotDailyNews reports from Minot, North Dakota manufactured homes are being welcomed in many older neighborhoods following the Souris River flooding in June of 2011 that took out some 4,100 homes. Many of the houses lost were older, smaller homes that can be replaced quickly and affordably with manufactured houses. Interest has been growing in recent years for modular homes and housing due to the oil boom, and manufactured housing has been growing in rural areas, but it has now increased in town following the flood. City officials have been inundated with special permit requests that are necessary for manufactured housing to be sited in flood plains. The Minot City council has been approving the requests despite misgivings on the part of some council members about their safety and future durability, while others welcome the homes as an alternative to empty lots and abandoned dwellings. MHProNews learned earlier the average price for a single-family home has doubled in Minot since 2008. As we reported here Sept. 20, 2012, a 3,000 home modular development is also under way in town.

(Photo credit: Jill Schramm/Minot Daily News)

Enter, Manufactured Housing?

June 19th, 2012 Comments off

Community development lenders and investors might be eligible for $200,000 grants each from the departments of Agriculture, Treasury and HUD to replace some of the worst housing in the nation—worse than urban slums or some Indian reservations: It’s the “colonias” areas of the U.S. border with Mexico. Likely to be in rural areas or just outside big cities, the residents are largely Hispanic, mostly American citizens, with a cultural propensity to own land. Often sold by shady landowners who tend to confiscate the land if one payment is missed, the residents too frequently have no money for a house after acquiring the land, so the “homes” tend to be of leftover wood, tar paper, and other scrounged materials. In some instances there is no water or sewage hook-ups, providing a breeding ground for disease. In fact, NationalMortgageNews tells MHProNews, Bubonic plague has even been detected at some sites. The funding will be targeted for infrastructure and construction to provide healthful and safe conditions.

(Photo credit: NBCSanDiego)