Manufactured Housing News

Diversification is one of the most important elements of a solid loan portfolio. Diversification greatly affects how well a portfolio performs. However, the quality of the assets decides the overall return.

Choosing high-quality, high-yield lending programs is important. This helps increase returns and reduce risk.

Though manufactured home financing has excellent growth and return potential, it remains one of the least explored asset classes. Now, let's explore the top five reasons. Community banks and credit unions should consider adding financing programs for manufactured homes to their offerings.

Reason #1: It provides a safe investment opportunity.

Currently, the lenders that make available manufactured home loans have strict eligibility requirements. Triad Financial Services only lends to prime borrowers. These borrowers have an average FICO score of 700 or higher.

Reason #2: Manufactured home financing can help build a lucrative portfolio.  

The more assets a financial institution adds to its portfolio, the more stable its portfolio becomes. By spreading investments across different loan programs, including manufactured home financing, you can better address market volatility and make your loan portfolio less vulnerable to large swings that may negatively affect specific market segments.

A financial institution with many loans in certain asset types is more likely to experience a significant decline. This can happen due to several loan products that do not perform well.

Reason #3: Manufactured home lending is a highly regulated industry sector.

Manufactured home financing guidelines can differ a lot between lenders. However, these loans follow rules that protect both lenders and borrowers.

Specialized government agencies, like the CFPB, protect borrowers. Lenders also have protection from a series of rules and regulations. For example, manufactured home loans are backed by the homes themselves, which serve as collateral. If a borrower fails to pay a manufactured home loan, the lender can take the home to recover its losses.

Reason #4: It can help you expand your market reach.

Improving your loan portfolio with manufactured home loans can help you attract new borrowers. This will allow you to enter a new lending market that you could not access before.

Loan portfolio diversification may not ensure better returns quickly. However, it can help increase your overall loan origination volume. This will eventually result in a higher ROI.

Reason #5: It allows you to maintain a highly profitable portfolio.

Here, we are not just talking about the benefits of adding manufactured home financing to your loans. We are focusing on the resources that manufactured home lenders offer. These resources help credit unions and small banks improve their diversification strategies.

Our manufactured home loan programs offer fast loan processing. They lead to happy borrowers, higher closing rates, and many chances to sell other products. A partnership with Triad Financial Services ensures your financing program for manufactured homes is profitable. It also meets industry standards.

In the world of investing, there is no such thing as risk-free investments. However, manufactured home financing is definitely worth careful consideration. Finding new investment opportunities is important for financial institutions. It can help them succeed in today's challenging lending market.