3 myths about manufactured homes

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Yellow manufactured house with green roof and shutters on a residential street

09/15/2016 | Author: Courtney King, guest expert

Are your buyers interested in manufactured housing? There’s plenty of misinformation circulating about these types of homes—here are three of the most prevalent myths.

Myth 1: Financing a manufactured home is hard.

The truth: Of the 60,000-plus manufactured homes sold last year in the south, more than half were financed. Manufactured homes qualify for Federal Housing Administration loans in the same way that site-built homes do. Some lenders may not approve them or have higher requirements to qualify for the loan, but there are lenders that specialize in loans for manufactured homes. The article “Financing a manufactured home is possible” contains more information.

Myth 2: All manufactured homes depreciate in value.

The truth: The mobility of manufactured homes has contributed to this myth. When a house is relocated, it can appreciate by moving to a more lucrative area or depreciate by moving to a less expensive area. In addition, when selling a manufactured home, the owners must take into consideration the cost of transporting the home and reflect this in the price. The home itself is not actually losing value faster than a site-built home. A big factor in a house’s value is whether or not it’s tied to the land it sits on. All homes, regardless of their building type, maintain resale value based on where they’re located. Because modular homes are built to the exact same codes as site-built homes, they are appraised the same way. With manufactured homes often being less expensive than site-built homes, the buyer can invest money towards more land or better quality land, making them a great investment and a valid housing option.  

Myth 3: Manufactured homes are low quality.

The truth: Since June 1976, manufactured houses have been regulated by the FHA, and they’re built to U.S. Department of Housing and Urban Development code. The only difference between manufactured and site-built homes is that the manufactured home is built in a climate-controlled factory. Every house that leaves the factory is thoroughly inspected before receiving the HUD stamp of approval. Today, manufactured houses can be custom built with features such as second stories, tankless water heaters, walk-in showers, soaking tubs, electric fireplaces, and LED lighting.

Manufactured homes are a great option for certain buyers. Make sure you’re giving them the information they need to make to the right choices.

Courtney King is social media manager for Titan Factory Direct, a Texas manufactured homes dealership. You can contact her at ccking@titanfactorydirect.com.



Courtney King on 10/10/2016

Here is another good article on realtors and manufactured homes.

David on 09/16/2016

Hank, don’t worry that is a popular myth as well.  Here is a link to the #1 manufactured home lender in the US. They will be able to help you with any type of manufacture home loan. Home only, new home, used home, and even homes on land. Hope this helps you make a few more sales!


David on 09/16/2016

Bottom line is I believe realtors should not provide information to their customers that is not factual and is only based on their past experiences. This article is only covering 3 myths when in reality there are so many that make manufactured housing have a negative image. I would suggest to all realtors to learn the facts about manufactured homes and provide their customers with the knowledge to make an informative decision.  Manufactured homes in most cases are unique and out of the “norm” of what realtors do and that scares them.

I have a local realtor that has made over $130,000 this year just in manufactured home sales. She knows how to get them financed, she knows the facts and she is not scared to sell them.

For all of those hungry realtors…. Change your mindset, learn about manufactured homes and profit from what everyone else runs from.

Courtney King on 09/16/2016

Mike, you are correct they are not interchangeable. My apologies for the confusion. For anyone that is interested, here is a brief summary of the differences between modular and manufactured.

Cristine Doyle on 09/15/2016

I found this to be very helpful and informative! In my experiences as a realtor I have seen a lot of misinformation on the topic.

Mike McEwen on 09/15/2016

Manufactured homes in our neck of the woods (Cherokee County) do not typically have great resale value.  We just sold a nice 4/3 on two acres for $65k.

Gerald Waldon on 09/15/2016

My experience as a real estate broker and as one who provides broker’s opinion for local banks, I find manufactured housing value per square foot depreciates from new to a point 20 years later where the value is significantly less than a site built home.  Perhaps the ones being built today are better, but today in smaller towns and rural community they are still viewed as a trailer, not a home.

Hank Braunstein on 09/15/2016

What was left out of importance is that once a manufactured home is moved to a different location, the owner cannot sell it through normal financing.

Mike McEwen on 09/15/2016

The article throws in the word modular home in a couple of instances and fails to make the distinction between modular and manufactured homes, almost as if its using the words interchangeably.

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