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The Truth Revealed Behind Manufactured Homes – Part 2

Boiling Down 4 Myths

 

In our last post we cracked open the truths behind three myths of manufactured homes regarding their investment potential, construction standards, and overall aesthetic. In this article, we boil down 4 more manufactured myths of manufactured homes. 

MYTH #4: Modular homes are built better than manufactured homes.

TRUTH: Here are the main differences between modular and manufactured homes are:

1) A manufactured home is built on a frame that allows wheels and axles to be applied long enough to move the home before being installed on a foundation suited for manufactured homes.

Modular homes have to be transported as well, in sections, and installed on a more traditional site-built foundation wall.

2) Modular homes are built to the state’s building code for the state they will be delivered, which may or may not meet or exceed HUD standards to which manufactured homes are built.

The truth is, they are both manufactured homes.

MYTH #5: Manufactured homes are always the first to be hit by fire, flood and severe weather and tend to have more problems than site-built homes.

TRUTH: Foremost Insurance, an insurance company specializing in manufactured housing safety issues, found that manufactured homes are safer than site-built homes in many ways.

A University report revealed that manufactured homes have a lower rate of fires than site-built homes. When there is a fire, research shows no fire safety differences between manufactured homes and site-built homes.

MYTH #6: Insulation in a manufactured home is poor compared to a site-built house.

TRUTH: Manufactured homes commonly meet and exceed the requirements for R-factor. Many of our homes come standard with Energy Star ratings in the insulation, using the same quality products of site-built homes.

In one study, manufactured home models were tested for air leakage as they came off the assembly line and qualified for a four-star rating, ranking higher than many site-built homes.

MYTH #7: Manufactured homes are difficult to finance or must be financed as personal property.

TRUTH: Some buyers of new manufactured homes finance their homes through the retailer where they purchased. Some buyers have arranged their own financing through their bank, savings association or credit union.

Back in the day, manufactured homes were financed as personal property because they were usually sold without land. Lenders now offered loan insurance and loan guaranty programs for personal property home loans by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). More than 90 percent of new manufactured homes are placed on permanent foundations – private land – and never intended to be moved. These homes are financed as real estate.

Manufactured homes may be financed as real estate when the home and land are both purchased or owned by the homeowner. The home is on a permanent foundation and the home and land are treated as a single piece of real estate under state law. FHA, USDA and VA programs for real estate mortgages accept these loans.