3 myths about manufactured homes
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 email@example.com.