Manufactured homes are built off-site in a factory-controlled environment on a permanent steel chassis. Since 1976, all units must comply with the HUD Code, enforcing federal safety, structural and energy-efficiency standards. After assembly, each home bears a HUD certification label.
Once factory-built and inspected, homes are transported by truck to their final location. Certified installers set the unit on a foundation or piers, connect utilities, install skirting and anchoring, then conduct a final inspection to receive occupancy approval.
The term “mobile home” generally refers to pre-1976 models built before HUD standards took effect. “Modular homes” also originate in factories but lack a permanent chassis and must be assembled on-site to meet local building codes, unlike HUD-regulated manufactured homes.
Modern manufactured homes come in single-, double- and triple-wide floor plans, ranging from about 320 to several thousand square feet. Older mobile homes lack HUD Code construction and often feature narrower layouts and fewer safety upgrades.
Modular units are factory-built sections delivered to a property and assembled on a permanent foundation under local or state codes rather than the HUD Code chassis requirements.
Stick-built homes are constructed entirely on-site with traditional framing, trades and inspections. They typically cost more and take longer to build but offer greater customization and are always classified as real property.
If you own the land, the manufactured home can be titled as real estate under a deed. If the home sits on rented land or you finance it separately, it remains personal property (chattel) and uses a chattel title.
On private land you control zoning and can convert to real property. In manufactured-home communities you usually lease the lot, limiting title options and creating potential displacement if the park owner sells or redevelops.
Anchoring the home to a permanent foundation, applying for a certificate of occupancy and filing new title paperwork with your state registry can convert a chattel-titled home into real property.
These government-backed loans can finance manufactured homes set on permanent foundations and titled as real estate. Eligibility varies by program; FHA Title I covers chattel loans, while Title II covers homes on owned land.
Chattel loans apply to homes on leased land. They carry higher interest rates, shorter terms (10–20 years) and down payments often between 5 – 20 %, reflecting higher lender risk.
Lenders typically require a credit score above 620, stable income and a debt-to-income ratio under 43 %. Investors may face stricter requirements or higher rates on multi-unit manufactured properties.
The HUD Code sets national standards for construction, structural design, fire resistance, energy efficiency and wind resistance. All manufacturers must be federally certified and inspected regularly.
States and municipalities may impose additional requirements for foundation types, setback distances, tie-down systems and final inspections beyond HUD’s baseline standards.
Local zoning may restrict where manufactured homes can be placed. Parks often have age, size or design guidelines. Always verify land-use rules before purchase or delivery.
Besides the home’s purchase price (around $125,000 on average), expect delivery fees, crane and foundation costs, utility hookups and any lot rental fees in a community.
Manufactured homes on leased land often depreciate like vehicles, while homes on owned land may appreciate more slowly than stick-built homes but can still gain value if the land appreciates.
Factory construction often means lower maintenance and utility bills due to modern insulation and energy standards. Insurance premiums vary based on location, foundation type and title status.
Homes cost about half as much per square foot as site-built, are delivered and set up in weeks rather than months, and offer multiple floor plans and finishes to choose from.
Limited structural customization, lingering stereotypes and tougher appraisals can impact financing and resale compared with traditional homes.
Lower purchase price and energy savings can offset faster depreciation, but land costs, lot rent and insurance must be factored into the lifetime cost comparison.
Research zoning maps, utility access and park rules. Private land buyers should confirm water, sewer and electric hookups before purchase.
Check factory accreditation, dealer reviews and installer certifications. Compare loan offers from specialized lenders experienced with manufactured home financing.
Obtain building and installation permits, arrange foundation or pier work to local standards, then coordinate water, sewer and electrical connections before final inspection.
Lucy purchases a new single-wide for $80,000, installs it on her rural lot for $15,000 and finances through an FHA Title I chattel loan. Total monthly payment: $650 including lot rent.
Raj buys two double-wide units for $250,000 on owned land and secures a USDA rural development loan. His rental income covers the mortgage and yields a 7 % cap rate.
Understanding HUD Code standards, title options and loan types helps both buyers and investors navigate regulations, budget and installation smoothly.
Yes, if it’s affixed to owned land, on a permanent foundation and titled as real property. Otherwise it remains personal property (chattel).
Chattel loans for homes on leased land come with higher rates and shorter terms. Mortgages on land-owned homes often qualify for conventional or government-backed programs.
The HUD Code is a federal construction standard for safety, durability and energy efficiency. Compliance ensures consistent quality across all manufactured homes.
Yes, if they meet HUD Code requirements and are permanently affixed to foundations. FHA Title I and II and VA programs each have specific criteria.
Consult local zoning regulations, county planning offices or manufactured home park managers. Verify any size, age or design restrictions before purchase.
Manufactured homes are factory-built to HUD standards, offering an affordable path to homeownership with distinct title and financing options and a clear compliance roadmap.
Next, vet accredited manufacturers, confirm land-use rules on your lot or community and compare chattel vs. mortgage loan products to secure your ideal manufactured home.
