Manufactured housing is one of the most affordable types of housing in the US, but the high cost of manufactured home financing may be contributing to its surprisingly low production. Our close look at Home Mortgage Disclosure Act (HMDA) data reveals that the loan most manufactured homebuyers obtain – the chattel loan – costs 4.4 percentage points more per year than a standard mortgage loan. Despite this greater expense, more than half the manufactured housing borrowers who might qualify for a mortgage opt for a chattel loan instead. We conclude that policymakers should explore measures that make accessing mortgages easier for buyers of manufactured homes.
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