Manufactured Homes Get New Respect
By Teresa Ambord
The world is taking a different view these days of manufactured homes. Where they were once considered little more than glorified trailers, now many people are opting for these instead of site-built homes.
They cost up to 35 percent less per square foot to build. Before you jump to the conclusion that the cost to build is less because of poor construction, take a look at these factors.
Building manufactured homes is more economical because:
- there are no weather delays, thus the buildings can go up much faster.
- there is less chance of theft from a construction site.
- there are economies of scale because the builders can buy materials in bulk, including things like bathtubs, sinks, appliances.
In addition, manufactured homes must meet stronger standards. A site-built home is only required to be built to local standards. Manufactured homes must meet the requirements of the U.S. Housing and Urban Development (HUD). Not only are the houses picked up and moved by cranes, but since they must be suitable for transporting, HUD requires that they be built with a steel transport frame that allows them to be moved down the road at 60 miles per hour. That frame makes the house stronger.
When Hurricane Floyd hit North Carolina in 1999, residents found that many of those who owned manufactured homes fared better, perhaps attributable to upgraded standards for manufactured homes set in 1994. When the hurricane knocked houses off their foundations, in many cases the site-built homes fell apart. But the manufactured homes were fairly easy to reset on their foundations because the houses themselves were still intact. After-market additions such as porches and decks may peel away if a hurricane hits, but the home itself is generally fine.
Here are some commonly held, but incorrect beliefs about manufactured homes:
- Designs are limited. Newer manufactured homes can be customized just about any way you want. They can be Cape Cod style or two-story. You name it.
- They depreciate. This was true once, but in general, manufactured homes on permanent foundations now appreciate at the same rate as the homes around them. Steve Hullibarger of the Home Team consulting group, has been observing the manufactured home industry for 25 years. According to him, except for a dip in manufactured home values in the 1980s these homes have appreciated nicely during this quarter century.
- Financing is difficult. This is still somewhat true, though improving as the attitudes towards manufactured homes change. Generally, you must have really good credit, (a score of 660 or higher) to qualify for a manufactured home loan. Fannie Mae, the private organization which provides funds to the nation's lenders, has acted to make financing of a manufactured home easier, recognizing the importance of this type of home in some segments of the economy. Under the old rules, Fannie Mae viewed sales of manufactured homes that are on permanent foundations the same as those that are not attached to land. Historically, loans on homes that were not on permanent foundations were poor performers, which explains why lenders shied away from them. Would-be buyers had to have a real estate loan for the land (assuming they were buying land) and another loan for the manufactured home, which was considered personal property. Now that Fannie Mae is treating permanently attached manufactured homes as one loan for land and home, there has been a significant upgrade in the image of these homes in many areas (although some states, such as Michigan, still consider manufactured homes to be personal property).
Studies show that, outside of metro areas, roughly ten percent of today's homes are manufactured while in cities, the figure is about three percent. In the Northeast, they are particularly popular. The truth is, you may be living next door to a manufactured home and not know it. The well-built ones blend nicely with the site-built homes around them.
Still not convinced? In that case, consider this: Thomas Edison's winter estate in Fort Myers, Florida was built in sections in Maine way back in 1885. It was then shipped to Florida on four schooners.and it's still standing.