The main distinction is where the home is built. Often called “stick-built”, site-built homes are constructed on site, board by board, and subject to weather, theft, scheduling problems and delivery of materials. A manufactured home is also “stick-built” in a completely controlled environment, using the same or better materials and advanced technology to improve engineering and construction.
No. Manufactured homes come in a wide range of styles, sizes and exterior finishes. Dramatic improvements in styling make it difficult to distinguish manufactured from site-built homes. In many cases, they are indistinguishable, both inside and out.
Manufactured homes come in a variety of sizes and floor plans that include spacious living rooms, dining rooms, fully-equipped kitchens, bedrooms, family rooms, and utility areas. Depending on the size of your home site, you can choose a single-section or larger multi-section design. Homes range in size from 1000 to 2500 square feet and can be customized to meet your needs and preferences.
The interior design of your home can include custom cabinets, walk-in closets, bathrooms with recessed tubs and whirlpools, and wood burning fireplaces. Because we use computer-assisted design, you will have flexibility in choosing variations to floor plans and decor.
Depending on the size, floor plans and features, a new home can cost anywhere from $15,000 to more than $100,000. This doesn’t include the land.
Just as there are choices when you buy a site-built home, there are a variety of financing options when you buy a manufactured home. Down payments and loan terms are similar — 5 to 10 percent of the manufactured home’s sales price, and loan terms from 15 to 30 years. Most lenders offer fixed and variable rates loans and most have programs that allow you to “buy the rate down”. If you own or plan to purchase the land where you will place your home, traditional mortgage financing can usually be arranged.
While your mortgage payment may be your biggest expense, you will have other regular and periodic payments. They may include utilities, property taxes, land rental fees, insurance, routine maintenance, and other service fees such as water and sewer. Today’s manufactured homes are built to meet new national energy standards set by HUD. The energy conserving features found in manufactured homes help reduce your monthly energy costs.
Many homes are placed on privately owned property. If this option appeals to you, find out about zoning laws, restrictive covenants, and utility connections. We can give you more information. Another option is to place your home in a land-lease community specifically designed for manufactured homes. Here, you will own the home but lease the land. Placing your home in a land-lease community involves fewer siting considerations such as utility connections. A third option is buying the home and the land together in a planned subdivision where siting issues are handled by the developer.
The construction of all manufactured homes marketed in this country is strictly regulated by the U.S. Department of Housing and Urban Development’s Manufactured Home Construction and Safety Standards (or HUD Code). In many cases, manufacturers view the HUD Code is minimum performance standards – and exceed mandated standards in their basic designs and offer buyers option packages with upgrades for increased energy efficiency and overall performance. The HUD Code encompasses not only the construction of the home, but also the performance of heating, air condition, ventilation, plumbing, thermal and electrical systems.
Many types of financial institutions and service companies – including banks, savings banks, credit unions, mortgage companies, and consumer finance companies – offer loan programs for manufactured home buyers. These companies can offer a number of consumer, conventional and government insured financing, such as the Federal Housing Administration (FHA), Veterans Administration (VA), Farm Home Loan Administration (FmHA), the Government and the Federal National Mortgage Associations (Ginnie Mae and Fannie Mae, respectively) and the Federal Home Loan Mortgage Corporation load programs. As for their investment possibilities, manufactured homes can retain – and gain – value when placed in the proper environment, installed and maintained properly, and treated as a long-term housing investment.
While manufactured homes are more affordable than most other types of housing, the reasons lie in the inherent advantages of any ongoing production process. Manufacturers purchase their building materials in volume – allowing the homes to be built with the highest quality materials and components. Because they are built in a controlled environment utilizing a systems-engineered production method, there are no costly weather delays in the construction process. Manufactured homes are less labor-intensive and require a shorter production time than site-built alternatives.
Independent studies and research by the National Fire Protection Association confirm that the incidence of fire is actually lower in a HUD Code manufactured home than a site-built home. And construction requirements for wind resistance for manufactured homes are equal to, or in certain areas of the country – even more stringent than the requirements for site-built housing. And, recent revisions to the HUD Code called for enhanced structural features and anchoring requirements for manufactured homes sold and placed in high wind areas – like the Atlantic and Gulf Coastal regions.
While most manufacturers adhere to common sizes for both single and multi-section units, today’s manufactured homes come in a variety of floorplan designs to meet almost anyone’s housing needs. Available options in exterior materials, colors and interior amenities – like fireplaces, whirlpool baths, walk-in closets and quality built-in appliances – give homebuyers an array of choices in their selection of a new home.
With more than 11 million Americans living in Manufactured Homes, you have a real cross-section of people, many of whom are likely to share your family’s interests. Recent purchasers tend to be younger, more affluent and have attained a higher level of education. There are also a large percentage of retired persons.
Yes! The mortgage interest is deductible. See your accountant for details.