Top Five Truths About Today’s Manufactured Homes that May Surprise You
Manufactured homes are undoubtedly the most misunderstood and mischaracterized form of housing in the United States.
There are a myriad of myths and misrepresentations that have been handed down over several decades that are today absolutely untrue. As a result there are many who will not consider manufactured homes when contemplating homeownership.
The following 5 truths contradict the most common myths, misgivings and concerns about today’s modern manufactured homes, the only truly affordable quality housing choice available for millions of American families.
(1). Manufactured homes are not “mobile homes”
In fact there have been zero mobile homes built by any manufacturer for over four decades. Say what? Yes it is a fact!
Today’s manufactured home is the only form of housing in the nation subject to a rigid federally mandated national construction code. Congress passed the “Manufactured Housing Construction and Standards Act of 1974 which became law on June 15, 1976, and upgraded in 1994 and has provided the framework of what we now know as the HUD Code.
The legislation explicitly and legally classified the HUD Code produced homes as “manufactured homes” as opposed to “mobile homes.” In fact, there are absolutely no similarities between the “mobile homes of the 50’s, 60’s and 70’s with today’s quality built manufactured housing.
(2) Manufactured homes can appreciate in value comparable to a site-built home.
This can’t be true..Can it? Yes it can!
Appreciation and/or depreciation of both manufactured homes and site builds are affected by the same factors: the stability of the community, supply and demand in the local market, type of home, how it is sited, how the home is maintained and location, location, location. If all other factors are equal, today’s manufactured home value can appreciate in the same way as a site built.
(3) Financing options for manufactured homes are more available and easier than most believe.
The type of financing readily available for purchasers of manufactured homes is dependent upon the placement site and whether or not the home and property are included in the financing.
Manufactured homes to be located on private property not attached to that property or homes placed in a manufactured home rental community are financed as chattel loans (personal property) with numerous lenders specializing in chattel loans. These loans are more expensive than mortgage loans, but are easier and more expedient to obtain.
Manufactured homes and/or modular homes placed on land owned by the homebuyer and installed upon a foundation attached to the property are considered real estate and qualify for mortgages equal to site built with same sources, ie. conventional, FHA, VA. USDA, etc.
(4) Manufactured homes are no more susceptible to wind and storm events than other single family dwellings.
Due to HUD Code construction and installation regulations amended in 1994 manufactured homes have proven to be as well built as site built homes and have performed equal are better than site built homes located in hurricane prone zones following the recent devastations in Florida. The destruction images projected by the media in the aftermath of Hurricanes’ Harvey and Irma were “mobile homes,” not manufactured homes.
(5) Fire safety of manufactured homes is equal and often superior to other traditional homes.
The HUD Code requires manufactured homes to be in strict compliance with several health and safety standards that are more stringent than those set for the IRC Code (site built).
A study issued by the National Fire Protection Association in July 2011 shows that both the occurrence of fire in manufactured homes is lower in manufactured homes than other types of dwellings.
