The US is currently facing an unprecedented housing shortage, which is quickly developing across the country. In addition, the housing crisis is exacerbated by a savings crisis, according to Bankrate. Quite surprisingly, these two crises don’t just affect the lower socio-economic classes, as many would assume. In a recent article published by Wired, housing experts admit that even “a family that makes $100,000 can’t afford to buy a house” in a major metropolitan area.
Given the current economic climate and the financial problems many people are facing these days, credit unions have become more important and relevant than ever before. That’s because they provide access to smaller loans, such as manufactured home financing alternatives. Now, let’s assess the top three reasons why credit unions offer these types of loans.
First, credit unions are continuously working to fulfill their primary goal of serving the legitimate credit needs of the hard-working Americans. Therefore, these organizations are more interested in helping their members and communities to build wealth than making profit.
Focusing on communities at a local level, most credit unions provide a suite of affordable financial products that have been designed according to the specific requirements of moderate-income borrowers.
Since “financing manufactured home purchases (...) has become a viable and effective community development [initiative],” according to CFED, increasing numbers of credit unions have also decided to add manufactured home financing and refinancing solutions to their loan portfolios. This basically means that credit unions are joining forces with other institutions and lenders, such as Triad Financial Services, to strengthen financing options for the buyers and owners of manufactured homes.
Delivering one of the best forms of loans for financing manufactured home purchases, manufactured home loan programs allow credit unions to create reliable sources of credit for the benefit of its members, at a fair interest rate.
Second, since the 2007-2008 financial crisis, financial institutions have been bombarded with requests to provide access to more affordable and flexible credit. To meet the increasing demands for smaller yet safe loan products, credit unions have opted for different manufactured home financing solutions.
Thanks to these initiatives, manufactured home loan programs are gradually becoming available from a higher number of reliable and responsible sources, saving thousands of borrowers a lot of money while offering a solution to the housing crisis.
Furthermore, specific guidelines—such as the FHFA’s new “Duty to Serve” rule—have allowed for faster and more affordable origination of smaller loans, including manufactured home loans, at costs that are fair to both borrowers and lenders.
Third, credit unions use manufactured home financing to diversify their loan portfolios. In addition to enabling a credit union to offer its members a wider range of loan products, diversification delivers one of the best strategies for managing credit risk and boosting profits.
Though credit unions are not-for-profit organizations that primarily exist to serve their members, the only way they can provide affordable loan products, improve their services and contribute toward the economic regeneration of the communities they belong to is to increase their “operating surplus.”
If you have any questions about our manufactured home loan programs and how they can help you enhance your loan portfolio, please don’t hesitate to contact one of our experienced professionals. Our unparalleled expertise, excellent service, integrity and professionalism that go beyond industry standards combined with attractive terms, competitive rates and a long history of customer satisfaction have turned Triad Financial Services into a leading manufactured home financing company and one of the top choices for hundreds of borrowers, realtors, dealers and investors.