Preferred Rate
Preferred Rate is a private U.S. mortgage lender that originates government-backed One-Time Close construction loans for manufactured and modular home buyers, distributed primarily through the Arrowood Team channel partnership in Northeast Tennessee and Southwest Virginia.
- Company typePrivate
- Founded2020
- HeadquartersOak Brook, United States
- Headcount501–1,000
- GTM typeB2C
- OfferingServices
What Preferred Rate does
Preferred Rate is a private U.S. mortgage lending company founded in 2020 and headquartered in Oak Brook, Illinois, doing business as Preferred Rate Mortgage. It originates government-backed One-Time Close loans that combine land purchase and home construction financing into a single closed-end mortgage, primarily targeting buyers of manufactured and modular homes. The company serves a concentrated geographic footprint in Northeast Tennessee and Southwest Virginia — specifically the Tri-Cities region of Johnson City, Kingsport, and Bristol — where it partners with the Arrowood Team, a regional mortgage lending team, to handle origination and borrower-facing activity.
The company's value proposition is built around housing affordability pressure: existing-home prices in its target markets have risen from roughly $150,000 to $275,000, pushing buyers toward manufactured and modular alternatives. Preferred Rate monetizes through transaction-fee mortgage origination on these government-backed construction-to-permanent loans. It has built an unusually large team (501–1,000 employees) for a regional lender and validated a nationwide remote-work operating model using the ActivTrak workforce analytics platform, enabling hiring beyond its core geography.
The go-to-market is sales-led and channel-dependent, with the Arrowood Team serving as the primary origination partner. No proprietary technology, AI/ML capabilities, patents, funding history, or management team beyond two named vice presidents is disclosed in available sources. Revenue, loan volume, and unit economics are not publicly reported, which constrains external valuation and trajectory assessment.
Preferred Rate firmographics
Firmographics- Name
- Preferred Rate
- Website
- https://preferredrate.com
- Company type
- Private
- Founded year
- 2020
- Operating status
- Operating
- Headcount range
- 501–1,000 employees
- Short description
- Preferred Rate is a private U.S. mortgage lender that originates government-backed One-Time Close construction loans for manufactured and modular home buyers, distributed primarily through the Arrowood Team channel partnership in Northeast Tennessee and Southwest Virginia.
- Ownership category
- akta.pro rank
Preferred Rate industry classification
Industry- Product category
- Mortgage Lending
- NAICS
- Mortgage and Nonmortgage Loan Brokers (522310)
- SIC
- Mortgage Bankers & Loan Correspondents (6162)
- akta.pro primary industry
- New Construction-to-Perm (Single-Family Owner-Occupied) (FSALAHAA)
Keywords
Where Preferred Rate is headquartered
LocationHeadquarters
- HQ city
- Oak Brook
- HQ country
- United States
- HQ region
- North America
Markets served
Preferred Rate business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D
Revenue model
- Mortgage Lending Services: Preferred Rate generates revenue through mortgage lending activities, including construction financing and government-backed One-Time Close loans that combine land purchase and home construction into a single loan product. The company serves home buyers seeking manufactured and modular homes as an alternative to purchasing existing homes.
Go-to-market motion1 record
Distribution channels1 record
Preferred Rate product offering
Product offeringCore offering
Preferred Rate originates government-backed One-Time Close (OTC) mortgage loans for buyers of manufactured and modular homes. The single loan product consolidates land acquisition, home construction or installation, and permanent mortgage financing into one approval, one appraisal, and one closing transaction. The lender focuses on the manufactured/modular housing segment, which typically carries lower purchase prices and less inventory pressure than traditional site-built housing.
Product overview
Preferred Rate operates as a mortgage lending platform offering government-backed loan products. The primary product identified is the One-Time Close loan, which combines land purchase and home construction financing into a single mortgage product. The company partners with mortgage lending teams (such as the Arrowood Team) to deliver these products to consumers seeking manufactured and modular home financing in the Tri-Cities and Southwest Virginia region.
Differentiator
Problem solved
Functional benefit
Products and services
- One-Time Close Loan Government-backed mortgage loan designed for buyers of manufactured and modular homes. Combines land purchase, home construction or installation, and permanent financing into a single approval, single appraisal, and single closing. Sold to individual consumers in the Tri-Cities region of Northeast Tennessee and Southwest Virginia (Johnson City, Kingsport, Bristol), typically through channel partners such as the Arrowood Team.
Companies that use Preferred Rate
Customer profileNamed customers2 records
Segments1 record
Ideal customer profiles1 record
Preferred Rate technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Preferred Rate partnerships and signals
Strategic signalPartnerships
Two partnerships are on record, tiered core and operational.
- Arrowood TeamcoreThe Arrowood Team is a mortgage lending team partnered with Preferred Rate, operating in the Tri-Cities region and Southwest Virginia. They report a surge in inquiries about construction financing, including government-backed One-Time Close loans that combine land purchase and home construction into a single loan product. This partnership enables Preferred Rate to reach home buyers seeking manufactured and modular homes in the Northeast Tennessee and Southwest Virginia markets.
- ActivTrakoperationalActivTrak provides workforce analytics platform services to Preferred Rate Mortgage, enabling the company to validate remote work productivity, optimize workflows, and expand hiring nationwide. The partnership provided insights that led to lower costs, improved recruiting, and increased employee earning potential while confirming strong productivity and accountability in remote work environments.
Scale indicators1 record
Recent moves5 records
Expansion highlights4 records
Preferred Rate competitors and assessment
Company assessmentDirect peers
- 21st Mortgage Corporation: 21st Mortgage is a leading manufactured and modular home financing provider, directly comparable to Preferred Rate's specialized focus on construction financing for factory-built housing. Both target the same borrower segment with similar loan structures.
- Vanderbilt Mortgage and Finance: Vanderbilt specializes in financing for manufactured and modular homes, including land-and-home packages. It is a direct competitor to Preferred Rate's One-Time Close construction-to-perm product offering for the same buyer demographic.
- CountryPlace Mortgage: CountryPlace Mortgage is a manufactured housing lending specialist offering land-home and chattel financing. Comparable to Preferred Rate in its niche focus on financing manufactured home purchases, including combinations with land acquisition.
- Triad Financial Services: Triad is a long-standing manufactured housing lender providing retail and chattel loan products. Comparable to Preferred Rate as a specialized manufactured-home financing counterpart with similar borrower profiles.
- Cascade Financial Services: Cascade Financial Services provides manufactured and modular home financing, including land/home packages. Comparable to Preferred Rate in product structure and target borrower segment.
Broad incumbents
- Rocket Mortgage: Rocket Mortgage is the largest U.S. retail mortgage lender, offering a broad suite of government-backed and conventional products including construction-to-perm options. Comparable to Preferred Rate as a mortgage originator, though it operates nationally and across many product types rather than specializing in manufactured housing.
- United Wholesale Mortgage: UWM is the largest U.S. wholesale mortgage lender. Comparable to Preferred Rate as a mortgage originator providing construction financing and government-backed loans, but with vastly broader scale and channel breadth.
- loanDepot: loanDepot is a major national mortgage originator with government, conventional, and construction products. Comparable in core lending activity but operates at national scale with a much broader product portfolio than Preferred Rate.
- Caliber Home Loans: Caliber is a large residential mortgage originator offering government and construction-to-perm products. Comparable to Preferred Rate in product types, with significantly broader geographic and channel coverage.
- NewRez (Rithm Capital): NewRez is a national mortgage originator and servicer with government-backed and construction financing offerings. Comparable to Preferred Rate in core activity, but with diversified product lines and much larger scale.
Market position
Strengths4 records
Weaknesses5 records
Competitive moat2 records
Key risks5 records
Key highlights5 records
Customer concentration
Preferred Rate financial estimates
Financial estimateRevenue estimate
Valuation estimate
Preferred Rate leadership team
Management profileNumber of profiles
Profiles2 records
Preferred Rate funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Preferred Rate M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Preferred Rate
What does Preferred Rate do?
Preferred Rate originates government-backed One-Time Close (OTC) mortgage loans for buyers of manufactured and modular homes. The single loan product consolidates land acquisition, home construction or installation, and permanent mortgage financing into one approval, one appraisal, and one closing transaction. The lender focuses on the manufactured/modular housing segment, which typically carries lower purchase prices and less inventory pressure than traditional site-built housing.
Is Preferred Rate a public or private company?
Preferred Rate is a private company. It is classified as unknown and is currently operating.
When was Preferred Rate founded?
Preferred Rate was founded in 2020. It employs 501 to 1,000 people.
Where is Preferred Rate based?
Preferred Rate is headquartered in Oak Brook, United States, in the North America region.
How does Preferred Rate make money?
One revenue line is on record: mortgage Lending Services.
Who are Preferred Rate's main competitors?
Direct peers on record are 21st Mortgage Corporation, Vanderbilt Mortgage and Finance, CountryPlace Mortgage, Triad Financial Services and Cascade Financial Services. Broad incumbents are Rocket Mortgage, United Wholesale Mortgage, loanDepot, Caliber Home Loans and NewRez (Rithm Capital).
Does Preferred Rate have an API?
No public API is recorded for Preferred Rate.
What industry is Preferred Rate in?
Preferred Rate's product category is Mortgage Lending. Its primary akta.pro industry code is FSALAHAA, New Construction-to-Perm (Single-Family Owner-Occupied). Its NAICS code is 522310 and its SIC code is 6162.