2. What is Manufactured Housing?
Simply put, manufactured housing refers to homes
that are built entirely within a factory and then
transported to a plot of land to be placed
3. What is Manufactured Housing?
Let's examine the specific things that
make it what it is.
5. Transportability
According to the federal law (Code of Federal
Regulations, 24 CFR 3280):
Manufactured homes are built as dwelling units of at
least 320 square feet (30 m2) in size with a
permanent chassis to assure the initial and continued
transportability of the home.
7. "HUD Code"
Manufactured housing was born on June 15th, 1976
when the Federal Manufactured Home Construction
and Safety Standards (or HUD code) went into effect.
In fact, the term "manufactured housing" was coined
by the legislation.
8. "HUD Code"
Prior to this, mobile homes (as they were then known)
gained a reputation for poor quality.
The HUD code was intended to remedy this and put
build standards and quality control on par with site-
built homes.
11. The second most defining characteristic is how they’re
built.
Constructed indoors in a climate controlled
environment and are protected from the elements
unlike a site-built home.
Workers are craftsman who are trained and
experienced in this type of construction.
Construction
12. The homes are assembled from the floor up in a
methodical multi-step process to help ensue quality.
Construction
13. The sections are wrapped in plastic to protect them and
are transported by truck to the site for final assembly.
Construction
15. Quality
The HUD code doesn’t simply cover standards for
building materials. All parts that make up the home
are covered.
16. Quality
Systems like electrical, plumbing and heating are checked
to make sure their performance is up to code.
Energy efficiency is also addressed as is fire resistance.
Nothing is overlooked.
18. Financing
Historically this has been challenging with regard to
manufactured housing.
The old mobile homes were seen as substandard in some
ways and banks didn’t view them as reliable sources of
collateral.
19. Financing
But with manufactured homes things are much better than
they used to be.
There are a lot of sources for financing including
government-backed options as well. For example, there is
FHA funding as a potential source.
Interest rates do tend to be higher
20. Financing
There aren’t the typical 15- or 30-year mortgages
available for site-built homes. Title I loans, in this
case, are for a maximum of 20 years.
21. Financing
A loan arrangement in which an item of
movable personal property acts as security for
a loan. The movable property, or chattel,
guarantees the loan, and the lender holds an
interest in it.
Chattel mortgages are another option. The
definition from Investoprdia is:
23. Financing
Currently the largest segment is millennials
and it’s growing.
They are almost unrecognizable from their mobile
home ancestors.
Even the buyer demographics have evolved as
well.
