The Other Mortgage Market: 3 Million Buyers Outside the System

When traditional mortgages aren’t an option, millions turn to lease-purchase deals, land contracts, and seller financing—often with higher costs and fewer protections. In this episode, Tim Lucas and Craig Berry break down who’s using alternative financing, why it’s surging, and how to protect yourself if you’re considering it. You’ll learn:Who Uses It & Where: Over 3 million Americans; nearly 10% of rural buyers vs ~6% urban. Condos/duplexes see ~23% alternative financing vs ~3% for single-family homes.Why It Happens: Lenders often avoid small-dollar loans (<$150K) and manufactured homes titled as personal property, pushing buyers to unregulated contracts.Manufactured Home Fix: Retitle as real property (permanent foundation + own the land + local recording) to access standard mortgages.Risks to Watch: Missing disclosures, balloon payments, “as-is” repairs, forfeiture clauses, no escrow for taxes/insurance, and no path to refinance.Safer Paths & Helpers: Check USDA, FHA, VA, local down-payment assistance, credit unions/CDFIs, and small-dollar-mortgage programs; get contracts reviewed by a housing counselor or attorney.Policy Angle (Quick Take): Expand small-loan access and add baseline consumer protections so families aren’t forced into predatory terms.Read the full article:https://www.mortgageresearch.com/articles/3-million-americans-use-alternative-financing/