What Makes A Manufactured Home Permanent

From mobile to manufactured homes.

Because of major design advances, many people now commonly refer to mobile homes as manufactured homes. Although the stereotypical single-wide is still available, manufactured homes come in a wide range of styles and sizes.

Definition

Manufactured homes are factory-built homes that builders place on site with the homes' steel frames attached. Homes come in sections and are pieced together on location. Manufactured homes differ from modular homes, which have room sections built in factories, but assembled on site.

Type of Ownership

The U.S. Department of Housing and Urban Development (HUD), which oversees the industry, classifies manufactured homes in two ways, either as personal property or real property.

Financing

Funding of the home is based on the designation of personal property or real property. Traditional lenders offer mortgages on permanently affixed homes, whereas funding is short-term on personal property, much like it would be for a car or boat.

The Difference

In its 2006 Manufactured Homes Foundation Guide, HUD says manufactured homes using piers and ground anchors are considered personal property. Real-property manufactured homes are anchored on slabs, crawl spaces and basements. Lenders fund the home and property as they would any other real estate, and real properties are also subject to their lending guidelines as well as local housing codes. Personal property homes are exempt from local codes and are only subject to HUD guidelines, but are funded using short-term loans.

Facts

Approximately 8.8 million people occupy manufactured homes, and the numbers continue to rise as the industry expands the options available to buyers. PATH (Partnership for the Advancing Technology in Housing) is a public/private group that combines the efforts of HUD, the EPA, FEMA and the Department of Energy to advance options in housing, with a focus on manufactured homes.

Advantages

Permanently placing a manufactured home on a foundation offers greater choices in funding and will allow for its value to increase as with traditional homes. HUD standards ensure the home will work well in areas subject to seismic activity, frost heave, snow load and other geographical hazards. As with any home construction, it is vital to research the options available as well as local and state regulations before purchasing a manufactured home.

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