Posts Tagged ‘traditional mortgage’

Tribal Member Qualifies for Mortgage on Modular Home

May 14th, 2015 Comments off

modular  apache mescalero native americans  ruidosonews  creditMHProNews has learned from rapidcityjournal in South Dakota of a Pine Ridge service geared to bringing financial independence to members of the Oglala Sioux Tribe. Mazaska Owecaso Otipi Financial, which translates from Lakota to “Lending Money for Housing,” was founded in 2004 and just qualified its first client, Dawn Holquin, for a traditional mortgage.

The modular home she purchased was actually set on the foundation two years ago, but the single-mother of two boys had to reverse a bad credit history, make sacrifices, practice restraint and to learn the financial culture of mortgages, she took a home-buyer education class.

Once prospective Mazaska clients complete the credit coaching and financial home-buying classes, they are eligible for short-term loans to finance a new home or rehab an existing home. Mazaska Executive Director Colleen Steele says the housing shortage on Pine Ridge has forced many tribal members to seek housing off the reservation.

Mazaska suggests tribal members work with the Bureau of Indian Affairs and the tribal housing authority to obtain 25 year residential leases on their property since that is the key to qualifying for a traditional mortgage.

Steele: Since Mazaska’s start, we have been building momentum by creating partnerships with other lenders to make affordable homeownership a reality for our people. The road has been long and even hard at times, but finding long-term, low-cost loan capital for mortgage lending and the partnerships that this will create makes the struggle worth it.

Holquin, an employee of Indian Health Services, now sitting in her modular home, says, “It is a really wonderful feeling to know that it’s actually my home. It feels good to see all that hard work pay off for something. ##

(Photo credit: rudiosonews–Apache Mescalero Native American modular home)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Twisting Terminology about Manufactured Home Financing

April 1st, 2015 Comments off

mfg home horizon land co creditWhile investopedia sets the record straight in noting “mobile homes” were built before HUD Code standards were established n 1976, it nevertheless uses the term in the article’s title: “Are Mortgages Available for Mobile Homes? It does use the correct phrase in the article.

It says 32 percent of manufactured home households are headed by a retiree, and their median income is half that of other families, without noting that household expenses are also often less in a manufactured home than in a site-built home.

In addition, manufactured homes aren’t always eligible for a traditional mortgage on any terms because the prospective homeowner doesn’t own the land on which they are located.” Not always true.

While it notes residents of manufactured homes are often “older individuals or low income families who tend to be offered less than favorable rates and terms on any type of loan,” it also says chattel loans are for shorter periods of time which reduces the actual amount paid in interest. In addition, closing costs are lower and the time it takes to complete the process is also less.

If you live in a manufactured home that is permanently affixed to the land on which it’s located – and if you own that land or are considering buying it – you probably qualify for a traditional mortgage.” Many manufactured homes are affixed to the land because that is the most secure option, particularly in the face of high winds.

As MHProNews  understands, the Investopedia  article makes no reference to pending legislation in Congress — the Preserving Access to Manufactured Housing Act — that could alleviate some financial challenges of buying a manufactured home.  

Equally important are points made by the Government Accounting Office (GAO) in their report last summer, see the link to that report which shows that MH costs less to own and finance, linked here. ##


The GAO chart above demonstrates the MH is the lowest cost form of housing, even considering personal property loan rates, based upon actual monthly payments.

Related finance article, linked here.

(Photo credit: Horizon Land Co.–manufactured home)

matthew-silver-daily-business-news-mhpronews-com   Article submitted by Matthew J. Silver to Daily Business News-MHProNews.

Rep. Fincher’s Remarks Regarding HR 1779 in the Congressional Record

May 3rd, 2013 Comments off

Rep. Stephen Fincher (R-Tenn.), Rep. Bennie Thompson (D-Miss.), and Rep. Gary Miller (R-Calif.) sponsored The Preserving Access to Manufactured Housing Act, HR 1779, which will amend the provisions in Dodd-Frank that curtail the availability of manufactured housing loans. In remarks in the Congressional Record of April 26, 2013, Rep. Fincher, while noting the importance of manufactured homes as affordable housing that many families rely on, states the housing turndown resulted in an 80 percent reduction in the production of MH, the closing of 160 plants, and the loss of 200,000 jobs. He says the Consumer Financial Protection Bureau (CFPB) issued guidelines as required under the Dodd-Frank Act that will classify many manufactured home loans as predatory and high-cost under the Home Ownership Equity and Protection Act (HOEPA). He says, “ Simply put the cost of originating and servicing a $250,000 loan and a $25,000 loan are the same in terms of real dollars, but the cost as a percentage of each loan’s size is significantly different. This difference causes the smaller-sized manufactured home loan to potentially exceed the new HOEPA thresholds set by Dodd-Frank and be categorized as a high-cost mortgage and stigmatized as predatory, even though there is nothing predatory about the features of the loan. The liabilities associated with making and obtaining a HOEPA high-cost mortgage will likely prevent lenders from offering loans to low and moderate-income homebuyers, denying families access to necessary credit for new and existing manufactured homes.” Noting the business model for buying manufactured homes differs from a traditional mortgage, he adds the measure would also remove manufactured home retailers and salespersons from being classified as loan originators, providing they do not receive compensation from a lender. As MHProNews reported April 27, the Senate will be considering a similar bill. For the entire entry into the Congressional Record, please click here.

(Photo credit: Champion Homes)