A New Financial Lifeline for California’s Manufactured Home Buyers

SAN JOSE, CA – December 08, 2025 – In a move that could reshape a critical segment of California's affordable housing market, PremierOne Credit Union has launched a new loan program aimed directly at one of the state's most underserved demographics: residents of manufactured home communities. The program, which offers financing for manufactured homes classified as personal property on leased land, represents a significant departure from the restrictive lending options that have long constrained would-be homeowners.

While the announcement of a new financial product might seem routine, its implications are profound. In a state grappling with an unrelenting housing crisis, where traditional homeownership is out of reach for millions, manufactured homes offer a vital, affordable alternative. PremierOne's initiative is more than just a new loan; it is a piece of financial infrastructure designed to build equity and stability where it is needed most, potentially setting a new precedent for community-focused lending across the region.

The Overlooked Foundation of Affordable Housing

Manufactured homes are a cornerstone of affordable housing in the United States, and particularly in California. They constitute a significant portion of the state's housing stock, providing homes for approximately 450,000 residents. A substantial majority—around 60%—of these homes are situated in land-lease communities, where the resident owns the home but leases the plot of land it sits on. This arrangement is especially common in high-cost areas like the nine counties PremierOne serves, including Santa Clara and San Mateo, where land values make traditional homeownership nearly impossible for low-to-moderate income families, seniors, and individuals on fixed incomes.

Despite their importance, these homes have existed in a financial gray area. Because they are not permanently affixed to owned real estate, they are legally classified as personal property, or “chattel,” much like a vehicle or a boat. This classification has historically locked them out of the conventional mortgage market, which is built around real property. Buyers have been forced to rely on chattel loans, a niche market notorious for its less-than-favorable terms.

"This program reflects our ongoing commitment to meet the evolving needs of our members," said Chris Caputo, Vice President of Lending Operations at PremierOne Credit Union, in the official announcement. "By offering financing for manufactured homes on leased land, we're opening doors for more families to achieve their dream of homeownership."

Bridging the Financial Divide

The primary obstacle for manufactured home buyers has been the nature of chattel financing. Compared to traditional mortgages, these loans typically feature higher interest rates—often several percentage points above the mortgage market—and much shorter repayment terms, usually capped at 15 or 20 years. This combination results in significantly higher monthly payments, creating a barrier to entry and making long-term financial stability precarious.

PremierOne's program directly confronts these challenges. The credit union is offering fixed-rate terms extending up to 25 years, a move that provides borrowers with the predictability and lower monthly payments often associated with conventional mortgages. Furthermore, the loan amounts are available up to $800,000. This figure is a game-changer, moving far beyond the typical caps of FHA Title I loans or other chattel products, which often fail to cover the cost of newer, larger, or better-located manufactured homes in California's expensive markets.

By creating a loan product with terms that mirror the stability of a traditional mortgage, the credit union is effectively bridging the gap between personal property financing and real estate financing. For a family looking to buy a home in a San Jose-area manufactured home community, this difference is transformative. A 25-year fixed-rate loan, versus a 15-year alternative, can reduce monthly payments substantially, freeing up household income and making ownership a sustainable reality rather than a financial tightrope walk.

A Strategic Bet on Community and Growth

For PremierOne Credit Union, this initiative is both a fulfillment of its community-focused mission and a shrewd business strategy. With over $620 million in assets, the institution is well-positioned to innovate in areas that larger, profit-driven banks often ignore. Credit unions, by their nature as not-for-profit cooperatives, are designed to serve their members' needs, and in a region defined by housing unaffordability, this program is a direct response to a pressing local issue.

"At PremierOne Credit Union, we believe everyone deserves access to safe, affordable housing," stated Andrea Brewer, President and CEO. "Our new Manufactured Home Loan Program is a powerful step toward expanding homeownership opportunities for families in our community. By offering flexible financing for homes on leased land, we're helping members build stability and equity—on their terms."

This move also allows the credit union to tap into a substantial, underserved market. By offering a superior product, PremierOne is poised to attract significant new membership from the nine counties it serves. Housing advocates and industry observers note that the demand for such a product is immense. “For years, we’ve seen buyers get turned away or forced into predatory loans because mainstream lenders wouldn’t touch these properties,” noted a local housing advocate who works with manufactured home residents. “A program like this could be a lifeline.”

The Ripple Effect on California’s Housing Landscape

The launch of this program could have a ripple effect that extends far beyond PremierOne’s member base. By proving that a viable, equitable lending model for personal property manufactured homes is possible, it sets a powerful precedent. Other credit unions and community banks may be inspired—or pressured by market demand—to develop similar offerings, fostering a more competitive and consumer-friendly financing environment.

For manufactured home dealers, more accessible financing could significantly boost sales, allowing them to serve a broader customer base that was previously locked out of the market. More importantly, for the hundreds of thousands of Californians living in these communities, it represents a monumental step toward financial inclusion. It validates their homes as significant assets and provides a pathway to build equity and generational wealth that has long been denied.

In the grand scheme of building smarter, more resilient cities, this kind of financial innovation is a foundational element. A connected future is not just about 5G networks and autonomous vehicles; it is built upon the stability of the communities themselves. By strengthening the financial security of a vital affordable housing sector, programs like this one lay the groundwork for more equitable and sustainable urban development, ensuring that the benefits of progress are accessible to all residents, not just a select few.