Monday, November 6, 2017
New Fannie Mae Program in NH Makes Buying Mobile Homes Easier, Less Expensive
A new Fannie Program, in which New Hampshire is the sole participant, provides for smaller down payments, lower interest rates and 30-year loan options for manufactured homes located in approved resident-owned communities. So far, Fannie Mae has approved eight resident-owned communities for participation with plans to add more. In New Hampshire, 123 of 450 mobile home parks are resident-owned, and the Fannie Mae program will only boost the number of potential buyers.
With lower interest rates, low and middle income borrowers will have the opportunity to afford better manufactured homes, or have more disposable income, which levels the playing field with single-family residences. The program was approved only for New Hampshire because majority of the mobile home parks in the state are resident-owned. Some park managers, like Adam Gidley of Salem Manufactured Homes, are asking the question: “Why do resident-owned communities get a benefit that other communities don’t?” According to Ignatius MacLellan, resident-owned communities offer a better chance that Fannie Mae would get its money back if it needs to foreclose on a property. With interest rates going from 8-12% down to 4-5% with the Fannie Mae program, it’s currently a “sellers market” right now in New Hampshire according to Gidley.
Read the full article here.