Definition:
Manufactured housing refers to homes that are built in a factory and then transported to a permanent location for installation. These homes are built according to federal HUD (U.S. Department of Housing and Urban Development) standards.
Example:
Karen buys a three-bedroom manufactured home that was built off-site and moved to her land. Once installed and connected to utilities, it looks and functions like a traditional home but is much more affordable.
Explanation:
Manufactured homes are often confused with mobile homes or modular homes. While mobile homes were built before 1976 (before HUD standards), manufactured homes follow strict federal building codes set after that year. They’re constructed in sections in a factory, then delivered and assembled on a permanent foundation, making them a cost-effective alternative to traditional site-built homes.
Manufactured housing can be placed in a manufactured home park (where land is leased) or on privately owned land. Financing may differ depending on whether the home is considered personal property (chattel) or real estate—typically based on whether it’s permanently affixed to land the buyer owns.
Buyers can often qualify for FHA, VA, or conventional loans if the home meets certain requirements, including foundation type and HUD certification.
Why is Manufactured Housing Important in Real Estate Transactions?
Manufactured housing is important because it offers an affordable path to homeownership, especially in areas where traditional housing is too expensive or limited. For buyers, understanding the difference between manufactured and other types of homes can affect financing, insurance, and resale value. For sellers and real estate professionals, accurately marketing manufactured homes helps reach the right buyers. This housing option plays a key role in expanding access to affordable, quality living spaces.