For all of the opportunity provided by the low cost of buying a manufactured homes, other systemic issues foil the sector. The lack of a fully functioning secondary market has been one of those issues.
Fannie Mae announced this weekend that they will participate in a pilot program in New Hampshire to buy loans at Lilac Drive Cooperative. Two local banks, St. Mary's Bank and Merrimack County Savings Bank, are working to originate the loans. They will be standard 30 year fixed rate loans. Right now, it looks like some of the mortgages will bear interest rates at or near 6 percent. That is a substantial difference from the 9 or 10 percent that homes in the cooperative were getting elsewhere.
Lilac Drive, located in Raymond, New Hampshire, is a cooperative park owned by its residents. It was developed under the system set in place by the New Hampshire Community Loan Fund. A double wide in Lilac Drive Cooperative is currently listed for $117,500.
For years, some personal property loans on manufactured housing have been sold on the secondary