Blog Entry

Reasons for Choice of New Housing

Information in this article was taken from an article prepared by NAHB for the U.S. Department of Housing & Urban Development.


The most important factor for moving in the past year was financial.  The square footage of the home and floor plan were also deciding factors.  Manufactured Home buyers cite financial reasons as the most important reason in the home they choose.  Mobile Home buyers are also eager to become home owners.  They also like the fact that the manufactured  home they are able to buy is considerably newer than the site built home in the same price range.  The manufactured home will also have less overall maintenance than an older home.  Compared to an older site built home the mobile home will have more amenities and newer floor plan trends due to the fact that it has been built more recently.

Will a Manufactured Home Appreciate in Value

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.
~Taken From Manufactured Housing Institute

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Today’s buyer of both new and existing manufactured homes may choose from a wide array of financing options.

Some financial institutions offer an entire menu of lending programs. The house can be financed as personal

property, on leased land, in a manufactured home community or on a privately owned site. Buyers who desire to

acquire land in conjunction with the home can finance the land and home together. Properly financed, the

purchase of a manufactured home should lead to equity building for the homeowner.

Most buyers arrange financing for manufactured homes through the retailer from whom they buy their home.

These retailers maintain business relationships with a number of lending institutions—large national lenders as

well as local institutions—and can assist in the preparation and submission of a credit application. Customers also

may shop independently for financing which a lender of their choice.

Manufactured homes can be financed as personal property. Even when the home and land are financed together,

the home is often secured as personal property and the land as real property. A growing number of buyers are

opting to put their homes on land they are purchasing or already own. Traditional manufactured home personal

property lenders have created land-and-home financing programs designed to accommodate this trend.

Homebuyers may also finance their home and land together as real property using conventional mortgage

financing obtained through a traditional mortgage lender. Fannie Mae and Freddie Mac, the primary secondary

market sources for mortgage loans in the U.S., encourage this with their guidelines for accepting real estate

mortgage loans for 20 and 30 year terms secured by manufactured homes. The federal government also

guarantees homes under the Veterans Administration’s (VA’s) Home Loan Guarantee program and the United

States Department of Agriculture’s (USDA’s) Rural Housing Programs. Qualified homebuyers may also obtain

loans insured by the United States Department of Housing and Urban Development’s (HUD’s)
, Federal Housing

Administration (FHA).


Typical Terms for

Manufactured Home Loans

New Homes

10% – 20% downpayment

Terms 15-30 years, depending on credit profile,

size of home, and type of loan

Existing Homes

10% – 20% downpayment

Terms up to 20 years

(actual terms will vary from lender to lender)

Terms and conditions on FHA an VA loans are similar to

those on conventional loans. Local HUD offices have

information on loan terms and conditions.

~Taken From the Manufactured Housing Institute

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Manufactured Housing - A Sound Financial Investment

Manufactured Housing - A Sound Financial Investment

In general, manufactured homes will appreciate at the same market rate as other homes in the same neighborhood, but, as with all housing, it is subject to the same market factors that affect appreciation, including:

· the housing market in which the home is located;
· the community in which the home is located;
· the initial price paid for the home;
· the age and maintenance of the home;
· the inflation rate;
· the availability and cost of community sites, which reflects the supply and demand influences on the home’s value; and
· the extent of a organized resale network, where an organized network will usually result in homes selling for a higher price than in markets without such an organized network.

Impact of Manufactured Housing on Property Values

For years many people have believed that manufactured homes, either on a scattered site or in communities, near or adjacent to site-built housing would depreciate the property values of the site-built housing. There is little evidence to support this notion, yet this belief has been used time and again to block manufactured home developments. In fact, all the recent studies on the subject have come to the conclusion that manufactured homes, either in communities or on individual lots, have no impact on the property values of adjacent site-built homes.

One of the first studies to tackle this issue was produced in 1986 by the Joint Center for Housing Studies of the Massachusetts Institute of Technology and Harvard University. In its analysis of a New Hampshire town without zoning restrictions for manufactured housing, the authors could find no statistically significant evidence that manufactured housing had any impact on adjacent site-built homes.

This conclusion was also supported by a 1993 study by the University of Michigan’s College of Architecture and Planning. In its examination of the impact of three Michigan manufactured home communities on adjacent residential property values, the authors stated: “…in all the cases we reviewed, the adjacent residential property values showed substantial rates of appreciation that were similar to the appreciation of comparable non-adjacent properties. We found that neither the private market nor local public officials differentiate between adjacent and non-adjacent properties when valuation levels are established.”

In 1997, the East Carolina University Department of Planning conducted the most extensive study to date on the topic. Using Geographical Information Systems (GIS) and spatial analysis, the authors analyzed the impact of both scattered manufactured housing and manufactured home communities on neighboring site-built homes in four North Carolina counties (Carteret, Henderson, Pitt and Wake). Even this extensive study came to the conclusion that the presence of manufactured home communities or individual manufactured homes had no impact on the property values of adjacent site-built residential properties.

© 2012  by Manufactured Housing Institute. All rights reserved.

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Facts About Modular, Manufactured & Site Built Homes

When you are buying a home, you might hear the terms modular homes, manufactured homes and site built homes. It's important to understand how they all differ, no matter whether you are purchasing an existing house or plan to build on land that is subject to restrictions. The differences can affect a home's price and its resale value, and even dictate whether or not it can be built on your land.

What Are Site Built Homes?

  • They are constructed entirely at the building site.
  • They conform to all state, local or regional codes where the house is located.
  • Often called 'stick-built' houses.
  • A well-built, cared for site-built home generally increases in value over time, although its location plays a key role in value.

What Are Modular Homes?

  • Modular homes are built in sections at a factory.
  • Modular homes are built to conform to all state, local or regional building codes at their destinations.
  • Sections are transported to the building site on truck beds, then joined together by local contractors.
  • Local building inspectors check to make sure a modular home's structure meets requirements and that all finish work is done properly.
  • Modular homes are sometimes less expensive per square foot than site built houses.
    A well-built modular home should have the same longevity as its site-built counterpart, increasing in value over time.
  • ~Taken from


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