Basic Questions & Answers!
What is Manufactured Housing?
- Manufactured homes, also referred to as factory built or system built housing, are primarily comprised of manufactured and modular homes. 95 percent of manufactured homes, and all modular homes, are permanently sited and built with the same materials as site-built homes.
Manufactured Homes
- Manufactured homes are built in a factory under a federal building standard administered by the U.S. Department of Housing and Urban Development (HUD). The Federal Manufactured Home Construction and Safety Standards (commonly known as the HUD Code) went into effect June 15, 1976. These standards regulate the manufactured home design and construction, strength and durability, fire resistance, energy efficiency and quality. The HUD Code also sets performance standards for the heating, plumbing, air conditioning, thermal and electrical systems. It is the only federally-regulated national building code for residential dwellings.
Modular Homes
- While Modular homes are also built in a factory, these structures use building techniques which must comply with local or state home-building codes, the same standards set forth for site-built homes. Modular homes are designated as ‘real property’ and are appraised, taxed and regulated differently than their manufactured housing counterparts.
- Two terms you may hear when considering modular home foundations are on-frame and off-frame. On-frame modular homes have a permanent steel-beam chassis. Off-frame modular homes are lifted by a crane off the transportation carrier and placed on a foundation. Both can be placed on permanent foundations. The State of Tennessee, Department of Commerce & Insurance, denotes ALL modular homes with a green certification label, regardless if the structure is on-frame or off-frame. The building code denotes the structure type, and not the presence of a frame.
Consider A Manufactured Home
Why Should I Consider A Manufactured Home?
- If you’re looking to get the most out of your “housing dollar,” you need to consider a manufactured home. Depending on the region of the country, construction costs per square foot for a new manufactured home average anywhere from 10 to 35 percent less than a comparable site-built home, excluding the cost of land. Today’s manufactured homes offer the quality construction, modern amenities and livability you are seeking… at a price that fits your lifestyle and your budget!
Structure Differences + Future Renovations
How Is A Manufactured Home Different From A Site-Built Home?
... and isn't 'Manufactured Home' just a fancy name for 'Mobile Home'?
- A manufactured home is constructed entirely in a controlled factory environment, built to the federal Manufactured Home Construction and Safety Standards (better known as the HUD Code). A site-built home is built “on-site” using traditional building techniques that meet either a local or state building code. Starting in 1976, the HUD Code established a stringent series of construction and safety standards which ensure today’s manufactured homes are superior to “mobile homes,” the term used for factory-built homes produced prior to the introduction of the HUD Code. Today’s manufactured homes are dramatically different in appearance from the “mobile homes” of yesterday, with estimates that more than 90 percent of today’s manufactured homes, never moving from their original site. Manufactured homes, like site-built homes, are now available in a variety of designs, floor plans and amenities. Today’s manufactured homes are indistinguishable from site-built homes, and are fully compatible with any neighborhood architectural style.
Can I Make Repairs/Renovations On A Manufactured Home The Same Way As With A Site-Built Home?
- While you should perform minor repairs and upkeep on the home, just as with any home, it is advisable to hire a professional for more extensive repairs and renovations. Your homeowner’s manual outlines maintenance requirements. Once your home has left the factory, the HUD Code does not include provisions for additions and alterations. Such modifications may jeopardize your home warranty. They may also create malfunctions or an unsafe home.
- An approved addition should be a free-standing structure which meets local building codes, and you may need a construction permit from local authorities. Failure to follow the manufacturer’s instructions on maintenance and renovations may void the manufacturer’s warranty, as well as lessen the value and life of your home.
Retailer Role
What Is The Role Of The Retailer In Purchasing A Manufactured Home?
...and can I buy a home directly from the manufacturer?
- Most manufactured homes are sold through retail sales centers, some of which are independently owned and operated. Others are owned and operated by a manufacturer. In some states, you may also buy from a manufactured home community owner, developer, or if you’re purchasing a previously owned home, a real estate agent.
- Retailers offer a variety of products and services, including helping you to customize the home to fit your needs and budget. Typically, the retailer is also responsible for coordinating the delivery and installation of your home. Furthermore, the retailer can assist by providing a list of finance companies that might interest you, as well as those companies who provide insurance coverage for the home. Once you’ve moved in, the retailer is often the contact for warranty service. Most states do not allow you to purchase a home directly from the manufacturer.
Quality
How Can I Be Sure That A Manufactured Home Is A Quality-Built Home?
Do Manufactured Homes Use The Same Building Materials and Processes?
- Today’s manufactured homes are built with the same building materials as site-built homes, but in a controlled factory environment where quality of construction is invariably superior to what can be done outdoors.
- The HUD Code regulates and monitors the manufactured home’s design and construction, strength and durability, transportability, fire resistance, energy efficiency and overall quality. It also sets standards for the heating, plumbing, air-conditioning, thermal and electrical systems. The HUD Code also ensures compliance with these standards with a thorough inspection system that takes place at each step as the home is being constructed in the factory.
There are major benefits to having your home built in a factory:
- All aspects of the construction process are quality controlled.
- The weather does not interfere with construction, cause costly delays or warp and damage building materials.
- All technicians, craftsmen and assemblers are on the same team, and professionally supervised.
- Inventory is better controlled, and materials are protected from theft and weather-related damage.
- All construction materials, as well as interior features and appliances, are purchased in volume for additional savings.
- All aspects of construction are continually inspected by not one, but several, inspectors.
HUD Code
Is The HUD-Code Less Stringent Than State Or Local Building Codes?
- No. While there are some differences between the codes, this difference has more to do with how the codes are intended to operate.
- While state or local building codes are basically prescriptive, meaning they prescribe what type of lumber or what type of electrical wire must be used in the construction of a home, the HUD-Code is more focused on performance, allowing the manufacturer to use products that are most compatible with the factory-building process, as long as these products perform according to the guidelines established in the HUD Code.
- Independent analyses comparing the state or local building codes with the HUD Code have found that “on balance, the codes are comparable” and “the net cumulative effect of the differences between the two codes is more likely on the order of hundreds of dollars, rather than thousands of dollars per unit.” In some cases, the local or state codes are more restrictive, while the HUD Code is the more restrictive in other situations such as ventilation, flame spread, and structural loads.
Customize!
Can I Customize A Manufactured Home To Meet My Particular Needs/Wants?
- Today’s manufactured homes come with the “standard” features you would find in a site-built home. Many floor plans are available which range from basic models to more elaborate designs which feature vaulted ceilings, drywall, fully equipped modern kitchens, comfortable bedrooms with walk-in closets, and bathrooms with recessed bathtubs and whirlpools. You may also select from a variety of exterior designs and siding materials, including wood, hardboard, or vinyl siding.
- With the vast majority of manufacturers now using the latest in computer-assisted design, you have the flexibility of customizing your home’s floor plan, interior finishes, and exterior design. Your lifestyle and your budget are the only limitations to the options available to you.
- Many manufacturers also provide homes that are “accessible” for those with special needs. If you are interested in such a home, work with your retailer to order a home with accessible features, such as extra-wide halls and doorways, accessible counters and appliances, and specially equipped bathrooms.
Zoning
Are There Limits On Where I Can Locate or Place A Manufactured Home?
- There are still some cities and towns relying on outdated perceptions and stereotypes of “mobile homes", and they continue to attempt placing zoning regulations which can limit where you place a manufactured home. However, more and more urban and suburban governments are recognizing that today’s manufactured homes are virtually indistinguishable from site-built homes, and are allowing manufactured homes to be placed in their communities.
- Before purchasing a manufactured home for an urban area, be sure to check the zoning regulations in the area where you want to live. Be aware of subdivision covenants and deed of restrictions.
- In Tennessee, state law prohibits local jurisdictions from discriminating against manufactured housing, solely because it is constructed in a factory. As well, state law prohibits local jurisdictions from oversight on the installation of the manufactured home. The Department of Commerce and Insurance, State Fire Marshal, Manufactured Home Division, is the local authority having jurisdiction on the 'installation' process, here in Tennessee.
Home Installation
Who Takes Care Of Installing A Manufactured Home? Can I Do It Myself?
- Most states have laws which govern the installation of a new manufactured home. Your retailer or the subcontractor installing the home is responsible for ensuring the home is installed in accordance with state regulations and the manufacturer’s installation instructions, or with an installation designed and approved by a licensed, registered engineer.
- The proper method of installing the home will depend on the design of the home and the conditions of the location, such as climate and soil type. Depending on the type of loan used to finance the home, the lender may have some specific requirements for the foundation and installation of the home as well. Again, in Tennessee, a consumer may not occupy a manufactured home which has not been installed by a person licensed by the State of Tennessee to perform such duties.
Warranty
Are Manufactured Homes Covered By A Warranty?
Who Do I Contact To Service Problems Covered By A Warranty?
- Most manufacturers offer warranties to guarantee the quality, workmanship, and major heating and cooling systems of the home for a specified time, usually ranging from one to four years. This warranty also tells the home buyer what to do if a problem arises. Makers of the appliances provided in the homes also provide either “full” or “limited” warranties. There are major differences among warranties and these warranties should be provided to you in writing.
- The retailer also has distinct responsibilities in the installation and servicing of the home. Be sure to have the retailer clearly state in writing, its responsibilities and warranty coverage for the home’s transportation and installation.
- Even if your home and some of its appliances do not have a written warranty, the buyer does have implied warranties under state laws which require a new home and new appliances to work normally and perform properly.
Finance, Insurance & Building Equity
What Kind Of Financing Options Are Available For Manufactured Homes?
- 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 of 15 to 30 years.
- If you are buying the home and land together, or plan to place the home on land you already own, some financial institutions offer traditional real estate mortgages with similar interest rates. Should you be purchasing the manufactured home separately from the land on which it will be located, the home will probably be financed as a personal property manufactured home loan, usually with a somewhat higher interest rate. FHA-insured and Department of Veterans Affairs-guaranteed (called FHA and VA) loans are available to manufactured home buyers. These types of loans may offer lower interest rates or lower down payment requirements, if available in your area. They require more paperwork during the credit application and approval process and, therefore, may take longer for approval than a conventional loan.
Will I Be Able To Insure My Manufactured Home?
- Yes. There are several insurance companies that specialize in offering insurance coverage for manufactured homes.
Will A Manufactured Home Appreciate In Value?
- Generally, a home is a great investment. Appreciation on any home, either site-built or manufactured, is affected by the same factors: the desirability and stability of the community, supply and demand for homes in the local market, and maintenance and upkeep of the home.
- When properly installed and maintained, today’s manufactured homes will appreciate the same as surrounding site-built homes.
Weather Related Questions
Fire and Storms
Are Manufactured Homes More Susceptible To Fire Than Site-Built Homes?
- Manufactured homes are no more prone to fire than homes built on-site. As a matter of fact, a national fire safety study by the Foremost Insurance Company showed site-built homes are more than twice as likely to experience a fire as manufactured homes, built to the HUD Code. Fire resistance provisions of the HUD Code include strict standards for fire retardation and smoke generation in materials, large windows in all bedrooms, smoke alarms, and at least two exterior doors which must be separate from each other and reachable, without having to pass through other doors which can be locked. Site-built homes are required to have only one exterior door and no “reachability” requirement.
Are Manufactured Homes More Vulnerable To Damage From Tornadoes And Hurricanes?
- While many like to joke that “mobile homes attract tornadoes,” there is no meteorological or scientific basis to thinking or repeating that theory. In fact, the explanation for the reports of damage to manufactured homes from tornadoes is quite simple: manufactured housing is largely found in rural and suburban areas where tornadoes are most likely to occur.
- As to hurricanes, valuable lessons were learned from the devastation of Hurricane Andrew in 1992, which destroyed or damaged thousands of site-built and manufactured homes. Now, in areas prone to hurricane-force winds, the standards for manufactured homes are equivalent to, or more stringent than, the current regional and national building codes for site-built homes in these high wind zones. Also, proper installation and anchoring of the home is a key element in how a manufactured home will perform in severe weather situations.
Special Considerations
Are There Any Other Special Considerations I Should Know About Before Purchasing and Living In A Manufactured Home?
- Like any home, while your mortgage payment may be your biggest expense, you will have other regular and periodic expenses, such as property taxes and service fees for water and utilities.
- While, theoretically, a manufactured home can be moved after its initial placement, it is neither common nor advisable to do so. If you relocate, make sure you use a professional transporter; never try to move the home yourself. Cost is another consideration in moving the home. Besides transport expenses, which include licensing fees to take your home through a state, you’ll have to pay for a new foundation, installation, and utility hook-ups.