Over the past decade, credit unions have become emerging players in the development of communities in need of affordable housing and lending solutions. As credit unions are designed specifically to meet the unique credit requirements of the people who live in communities underserved by mainstream financing, most of them have started to function as lending partners in various community financing initiatives.
One of these initiatives involves financing manufactured homes, which deliver an affordable housing alternative that meets the financial needs of many hard-working Americans. In this post, we’re going to talk about how financing manufactured homes can be a successful community development strategy for a credit union.
Providing Loan Products and Services at Lower Costs
Dedicated to serving and revitalizing communities, many credit unions offer a wide array of financial products and services. But compared to less “borrower-friendly” financial institutions, credit unions along with long-established lenders like Triad Financial Services and locally owned banks offer substantially lower fees and interest rates for different loan products, including manufactured home loans.
Paying lower fees and interest rates will allow borrowers to realize hefty savings over the life of their loans. This positively affects both their financial situations and the wealth of the communities they belong to.
In addition, many credit unions have developed and implemented more responsible money management and saving strategies. As a result, they have recently reported increasing loan origination volumes and return on their investments, as confirmed by the NCUA. Generating more sustainable income can help accelerate growth in communities.
Promoting Micro-Lending Alternatives
Whether a potential borrower needs $150,000 or just $45,000 to purchase a manufactured home, credit unions may be the answer he or she is looking for.
By adding manufactured home financing options to its loan portfolio, a credit union will be able to approve nearly any loan amount an applicant needs and qualifies for.
The Federal Reserve indicates that many credit unions already make available micro-loans that better fit the legitimate credit needs of underserved borrowers. In fact, offering smaller loans is another step any credit union can take toward fulfilling its mission of serving the community.
Providing a Favorable Climate for the Economic Development of Communities
As community-based organizations, credit unions are involved in local and regional community economic development initiatives, which can take many forms. Providing financing alternatives for manufactured homes is just one of them.
In addition to educating members about the advantages of financing manufactured homes they can comfortably afford, credit unions can also mobilize their organizational resources in order to better tie innovative lending programs into different economic development initiatives.
But implementing such programs isn’t easy. To be successful, credit unions need to partner with a reputable manufactured home lender like Triad Financial Services.
As a leading manufactured home financing company, we are able to provide the loan products and services your credit union might need in order to thrive in the manufactured home lending sector. Teaming up with us will also help your organization enhance its resources so that it can further pursue its role in the economic development of the community it is part of.
At Triad Financial Services, our experts are ready to work together with credit unions, small banks and other investors in new partnerships, in which each partner can successfully fulfill its mission and vision, while sharing both risks and profits.
