Freddie Mac provides loans for manufactured homes to address U.S. affordability problem
Last Updated: 2018-12-03 13:45 | Xinhua
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U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Friday that it would provide conventional financing for manufactured homes in the face of a widening housing affordability gap.

Manufactured home, or factory-built home, is a type of pre-built housing that is mostly assembled in factories before it is transported to the residential area.

"Today's manufactured homes can deliver outstanding quality at prices that are up to 50 percent less per square foot than conventional site-built homes. These savings can enable more Americans to own their own home, even in the face of an ever-widening housing affordability gap," said Freddie Mac.

Freddie Mac said it was conducting a two-year CHOICEHome pilot program, aiming at bringing conventional loan financing to these factory-built homes and give low-income buyers in the United States more options to find an affordable home.

"Freddie Mac will treat loans secured by CHOICEHome like loans secured by single-family site-built homes. If a factory-built home meets certain specifications it will be granted a CHOICEHome certification and will be eligible for CHOICEHome financing," according to Freddie Mac.

Currently, there are more than 22 million families living in factory-built housing, said Mike Dawson, vice president of single-family affordable lending strategy and policy at Freddie Mac.

"Finding a home is more difficult than ever because of the ongoing housing supply shortage in many parts of the country, especially when looking for a home at a lower price point," said Dawson.

"There's an opportunity for factory-built homes to address the housing supply shortage and quality housing overall," Dawson added.

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