Pros And Cons Of Manufactured Homes: A Guide (2024)

FAQs

What is the downside of owning a manufactured home? ›

Cons: Well the price of the home is cheaper than a traditional home but it also is like a car where it decreases in value. Also, unlike buying a traditional home when you buy a mobile/manufactured home you will pay high rent for a very small piece of land you have to rent for as long as your home is parked there.

The Difference Between Mobile and Manufactured Homes

The only difference between the two types of homes is the date they were built. According to HUD, a factory-built home prior to June 15, 1976 is a mobile home and one built after June 15, 1976 is a manufactured home.

When it comes to financing a manufactured home, some lenders tend to shy away from these popular structures. This is due to the fact that some manufactured homes may age more quickly than their site-built counterparts.

Lightly and cheaply built, conforming only to a very weak HUD code, not considered real estate by the lenders, assumed to lose value over time like a car. Modular homes, on the other hand, were known to be very different, built to the same codes as site-built homes. They are usually well-crafted permanent buildings.

Modular homes are assembled on a site and anchored to a foundation, whereas a manufactured home is transported in one piece to a site and can be relocated. Because they can be moved, manufactured homes are considered chattel (personal property) — like a recreational vehicle.

All mobile homes have wall insulation, but it's typically thin material with a low R-value. All mobile homes have some sort of underbelly. At first, you may think crawlspaces don't need much if any insulation, but it actually is an area where insulation is necessary because of plumbing.

Manufactured homes are often considered more recession-resistant compared to traditional homes. This resilience is attributed to their lower cost and the growing interest in affordable housing solutions, especially in economically turbulent times.

Of course, modular houses have their downsides. These include less customization capabilities than stick-built homes. The cost of the land and construction of the home may be higher than some people can afford, land restrictions, and perceive quality issues. Modular homes may also have more a complicated loan process.

What are the walls in manufactured homes made of? ›

The most common type of wall used for a manufactured home is called Vinyl-Over-Gypsum or VOG for short. VOG is drywall that is coated in vinyl wrap. This is different way of treating drywall as compared it being taped, floated, textured & painted.

No matter what type of manufactured home you live in, it is not a safe place to take shelter during a severe weath- er event. MOVE TO A SAFER STRUCTURE. Single family homes are safer, but not completely safe.

A disadvantage of buying a mobile home is that its value will depreciate quickly. Like a new car, once a mobile home leaves the factory, it quickly drops in value. Stick-built homes, on the other hand, normally appreciate in value over time because the stick-built home owner almost always owns the underlying land.

According to the Department of Housing and Urban Development, permanent foundations for manufactured homes must be constructed of durable materials like concrete, mortared masonry or treated wood, and have attachment points that anchor and stabilize the home to the underlying soil or rock.

Do Manufactured Homes Hold Their Value? Current manufactured homes may depreciate less than older generations of manufactured or mobile homes, but they may not appreciate as much as traditional single-family homes. Their classification as “personal property” may impact their value.

Manufactured homes might not be a good idea for some home buyers for the following reasons: Must have a foundation: You can't just wheel your home wherever you feel like it, like a camper or RV. Manufactured homes require finding undeveloped land or space in a manufactured home community.

It's possible to secure a mobile home substantially cheaper than other pieces of property. This makes mobile home flipping a more financially attainable investment strategy. Additionally, investors face less risk because mobile homes are significantly less expensive to flip.

The common myth is that manufactured homes are weaker or flimsier than site-built homes, but the reality is just the opposite. The extra materials used in the construction of the structure provide additional support to the manufactured home, even in the strongest weather conditions.

Despite their affordability, mobile homes have historically been associated with depreciation, unlike traditional homes which typically appreciate over time. This has led to varied opinions on their investment potential. However, the landscape is changing, with many investors finding success in the mobile home market.