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Manufactured Home Definition – Pros and Cons

by sambit
what is a manufactured home

Here, everyone wants to be a homeowner. If you’re also one of those, there are several choices from condo to a manufactured home in the home buying process. Finding the best deal is the main motive of every home dreamer.  If we talk about a manufactured house, manufactured homes pros and cons will put you in a confusion in making the right choice.

These houses are attractive to young families, and prices are much lower than the site-built houses. In this article, we’ll cover everything about manufactured homes pros and cons. But before we do that, we’ll show you what is a manufactured home, its history, present and how you can purchase it.

So, let’s get started.

What is a Manufactured Home?

Talking about the definition of a manufactured home, we can say that it is just a fancier term for a mobile house.

We can describe it as a much improved mobile home.

On the other hand, if we want to give a technical definition to a manufactured house, we can say that it is factory-built on a chassis with wheels.

These houses started building after 15 June 1976, on the day of federal standards regulating the construction of mobile homes.

However, the US Department of Housing and urban development set these standards.

So, we can say that if you’re buying a manufactured house before 15 June 1976, it means that you’re purchasing a mobile home.

But if you purchase a house after that date, it is a manufactured home.

History of a manufactured house

Here, we’ll talk about the history of the prefabricated house and the differences between earlier and modern mobile homes.

In the early 1900s, mobile homes came to the world. These houses were created for the people who have to move frequently in search of jobs. The structure for these houses was like a modern-day camper, built on steel I-beams. You can set up this house on concrete blocks, wooden blocks, metal stands or on a concrete foundation in your location. One big plus about this house is that it comes with wheels and a trailer coupler. So, you can move it from one place to another efficiently.

Manufactured house Present

Nowadays, mobile homes are a little similar to yesterday’s prefabricated houses. You will get choices in floor plans, interior designs in today’s manufactured houses. They come in different models featuring vaulted ceilings, comfortable bedrooms, drywall, modern kitchens and fully-equipped bathrooms with recessed bathtubs.

One thing more, we can say that these houses are not mobile because you can move them only once.

In this case, you have to decide where you want to place it before purchasing it.

If you’re deciding to leasing a lot in a manufactured home community, moving into an established one will give you full access to utilities and amenities of the community. But the negative part is that you will get bounded by the community’s rules and regulations. On the other hand, if you decide to set a house on your land, you will get more freedom and better yet, the value of your home will get increased.

Housing style of a Manufactured house

These houses are spacious and come up with a living space, kitchen and fully-equipped bathroom and bedroom.

In recent years, the housing styles of manufactured houses changed, including customizing the floor plans and increasing ceiling height. If you see it from the outside, you will get mesmerized by its rectangular constructions.

Nowadays, you will get a lot of features and a variety of looks in a prefabricated house. You will find manufactured houses in different models with features including modern kitchens, comfortable bedrooms, vaulted ceilings and a fully equipped bathroom.

What customizations can you do in a manufactured house?

Let us discuss some customizations you can enjoy in a manufactured house.

However, these homes come with many different features, as we discussed before in the article. But the best thing is that you can customize these houses according to your requirements. You can add hardwood flooring, upgraded cabinetry and lighting to make the space more comfortable and personalized. Some other customizations we can include are adding ceiling fans, up-flow ceiling vents and thermal pane windows.

However, these upgrades will improve the ventilation, airflow, lower utility bills and build a more comfortable living space.

How can you buy a manufactured house?

I know, after seeing all the features and customizations, you must be wondering how to buy a manufactured house. If you’re looking to purchase a prefabricated house, you can get it from retailers. On the other hand, you can also get a prefabricated house through real estate agents. There are many real estate listing websites and online home marketplaces where you can purchase them.

In most states, you can purchase these houses from a manufactured home development.

However, purchasing a manufactured house is not like getting a car. When you went to buy a prefabricated home, you will get different choices in it. For example, single, double or triple-section ranging one bedroom, bathroom less than 500 square feet. And four bedrooms, three bathrooms of more than 2500 square feet. You can make your upgrades, and you can select your floor plan. After completing all the customization, the deal will handle all the transportation and installation work.

As I mentioned earlier, you have two choices in purchasing a manufactured house. You can lease the house on an established community, or you can set it up on your land. If you decide to lease the house on an established, remember that you have to pay the rent. Moreover, you have to pay the charges for shared services, utilities and amenities.

On the other hand, if you decide to set up a house on your land, you need to check the local zoning restrictions with the government. Moreover, you have to check for septic, electrical and building permits. Compared to a site-built home, you will get more limited choices in financing a manufactured house.

If you own land, the house you will place on it will be your personal property. Otherwise, you have to take a chattel loan rather than a mortgage loan. You have to pay higher interests in a chattel loan. Moreover, these loans also come with shorter loan terms and fewer consumer protections.

How much does it cost?

The manufactured houses are cheaper than site-built homes. However, the cost to purchase a manufactured house will depend on the state you’re living. According to the US census bureau, a manufactured home with a double width in Connecticut cost about $138,800.

On the other hand, these prices drop to $71,700 in Indiana. Do not forget to factor in the land cost if you’re planning to buy a manufactured house. If you want to buy a manufactured home’s resting spot, you have to rent a space in a park.

Manufactured homes Pros and Cons

In this section, we’ll be covering the manufactured homes pros and cons. These points will help you make the right choice.

Let’s get started.

Manufactured Homes Pros And Cons

1. Affordability

A manufactured house is cheaper than a site-built home. The average cost for a site-built house per square foot is $107.

On the other hand, it is $49 per square foot for a manufactured home.

According to the Millennial Housing Commission report, manufactured houses considered one of the largest sources of non-subsidized housing in the world.

Nowadays, it has become a vital part of the solution to the growing housing shortage.

2. Structural strength

Do you know? Prefabricated homes built under the federally mandated HUD code.

However, the code ensures that the house meets all the standards for structural design, construction, fire safety and energy efficiency. In the United States, all the manufactured houses come with a red seal that ensures that the stringent certification process in the building industry has met.

3. Versatility

All the manufactured houses come with versatility. It can be affordable, comes with options of adding additional manufactured modules. You can also perform some customizations according to your requirements. If you’re planning to build a permanent structure in future, a manufactured home will work as a starter.

Although, the best thing about a manufactured house is that you can move it from one place to another.

4. Faster Installation

There is nothing more exciting in this world than watching your home taking shape. It’s quite a fantastic experience watching your house lifting with a crane. Utility hookups will be the final installation, and you’re ready to organize your new life. The bottom line is that a manufactured house comes with a faster installation process.

So, you can enjoy a new lifestyle in your new home.

5. Energy efficient and Eco-friendly

Prefabricated houses are eco-friendly and energy-efficient.

As I mentioned earlier, these houses built under the HUD code ensure the home meets all the standards for structural design and energy efficiency. So that is why these houses achieve a high degree of energy efficiency.

Nowadays, homes come with energy-efficient windows, insulated walls and an on-demand water heater. The kitchen and bathroom both also come with energy-efficient appliances and water-saving plumbing fixtures and faucets.

However, you can also opt for energy-efficient lighting in your house.

6. Low risk construction

As we all know, construction sites include many dangers like damage, delivery delays and theft. These problems will get reduced with a manufactured house. Moreover, misuse and disappearance of materials will also get decreased.

Now, you must be feeling that the cost will get increased. Do not worry. The cost of a prefabricated house will remain lower than a site-built house.

Cons of a Manufactured house

Now, let us discuss some disadvantages of a manufactured house.

1. Availability and cost of suitable land

There can be a shortage of lands with full access in the populated and Sunderban areas. Sometimes, the land will be deed-restricted to the site-built constructions. You will face difficulties in site preparation and the cost of access in the rural areas.

2. Lingering Stigma of Mobile homes

As we all know, modern designs altered the picture of a mobile house. But there is still a bias against them in some areas. The picture of communities that developed manufactured housing is getting changed. Nowadays, some communities that do not allow to permit the manufactured house starts sanctioning them.

3. Long-term value

As I mentioned earlier, the cost for a manufactured house is lower than a site-built home.

But we want to mention that it can be mixed blessings. The property tax and long-term appreciation are lower. But now, these values are getting affected by the market conditions. And it says that the appreciation value will be more in the future.

4. Lender Requirements

In some cases, manufacturing is a specific financing consideration, and in others, it is personal property.

But you need to understand that it is affecting your plans and financing options.

Moreover, the mortgage lender will not offer a mortgage for the manufactured house. The reason behind this is that they do not offer a mortgage for a house that is on a chassis. On the other hand, if you place a home on a concrete foundation, you will favour a loan request from the bank.

Remember that these options will increase your financing options.

So, instead of getting a mortgage, we will recommend you a personal home loan. This loan will involve less favourable loan terms, more stringent qualification requirements, additional cash investment.

So, here are the manufactured homes pros and cons. We hope these points will help you make the right decision.

Wrapping up

Hopefully, the information outlined above in the article will help you know what is a manufactured home. Moreover, we also showed you manufactured homes pros and cons. So, you can make the right decision of buying it or not.

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