Kingsway Green

1.  Why should I consider a manufactured home?

If you are looking to get the most out of your housing dollar, consider a manufactured home.  Depending on the region of the country, construction costs per square foot for a new manufactured home average anywhere from 35 to 60 percent less than a comparable site-built home, excluding the cost of the land.  Today's manufactured homes offer the quality construction, modern amenities and livability you are seeking at a price that fits your lifestyle and budget.

 2.  Why are manufactured homes so affordable?

Thanks to Henry Ford, the founder of Ford Motor Company and the father of the modern assembly line, Mr. Ford's building techniques utilizing the production assembly line has led to the manufactured home being very affordable to the consumer.  There are only two profits built into the new modern manufactured home.  One profit from the manufacturer and one profit from the dealer.  A site-built home has at least a dozen profits built into its price  that the consumer must pay.  A site-built home is erected by a dozen different subcontractors; each making a payday plus a profit.  The manufactured home builder hires on his payroll all the different professionals it takes to build the home, thereby eliminating all of these individual profits.  Also, the manufactured home builder buys all the building products in bulk and passes the savings on to the consumer, thereby creating a quality and very affordable home.  The American Dream of homeownership is now within reach of every citizen through American ingenuity!

Mobile home typically refers to an older product built before the Housing and Urban Development Code (HUD) went into effect in July 1976.  To help clarify some of the terms associated with manufactured housing, please refer to the following definitions:

Factory Built Housing

General term referring to any structure designed and built in a factory.  These structures may be built to federal, state or local building codes and may be designed for commercial or residential use.  In any case, construction begins in a factory and is completed after the building has been transported to its installation site.

Manufactured Home

Refers to a home built in a factory to meet or exceed the federal code administered by HUD.  The Manufactured Home Safety and Construction Standard (HUD Code) was originally adopted by Congress on June 15, 1976.  Manufactured homes may be single or multi-section and are transported to the site and installed.  The federal standards regulate design and construction, strength and durability, transportability, fire resistance, energy efficiency and quality.  The HUD Code also sets performance standards for the heating, plumbing, air-conditioning, thermal and electrical systems.  It is the only national building code.

No.  While there are some differences between the codes, this difference has more to do with how the codes are intended to operate.  While state and local building codes are basically prescriptive, meaning they prescribe what type of lumber or what type of electrical wire must be used in the construction of the home, the HUD Code is more focused on performance, allowing the manufacturer to use products that are most compatible with the factory-building process as long as these products perform according to the guidelines established within the code.

Independent analysis comparing the state and local building codes with the HUD Code have found that "on balance, the codes are comparable" and "the net cumulative effect of the differences between the two codes is more likely on the order of hundreds of dollars, rather than thousands of dollars per unit."  The HUD Code is the more restrictive in situations such as ventilation, flame spread and structural loads.

Generally, a home is a great investment.  Appreciation on any home - either site-built or factor-built - is affected by the same factors: the desirability and stability of the community, supply and demand for homes in the local market, and the maintenance and upkeep of the home.  When properly installed and maintained, today's manufactured homes will appreciate the same as surrounding site-built homes.

Yes.  There are several insurance companies that specialize in offering insurance coverage for manufactured homes.

Just as there are choices when you buy a site-built home, there are a variety of financing options for manufactured home buyers.  Down payments and loan terms are similar - 5 to 10 percent of the manufactured home's sale price for a down payment and loan terms of 15-30 years.

While some joke that "mobile homes attract tornadoes", there is no meteorological or scientific basis for this theory.  In fact, the explanation for the reports of damage to manufactured homes from tornadoes is quite simple: manufactured housing is largely found in rural and suburban areas where tornadoes are most likely to occur.

As for hurricanes, valuable lessons were learned from the devastation of Hurricane Andrew in 1992, which destroyed or damaged thousands of site-built and manufactured homes.  Now, in areas prone to hurricane-force winds, the standards for manufactured homes are equivalent to or more stringent than the current regional and/or building codes for site-built homes in these high wind zones.

Manufactured homes are no more prone to fire than homes built on-site.  As a matter of fact, a national fire safety study by the Foremost Insurance Company showed that site-built homes are more than twice as likely to experience a fire as manufactured homes.

Fire resistance provisions of the HUD Code includes strict standards for fire retardation and smoke generation in materials, large windows in bedrooms, smoke alarms and at least two exterior doors which must be separate from each other and reachable without having to pass through other doors that can be locked.  Site-built homes are required to have only one exterior door and no "reachability" requirement.

While you should perform repairs and upkeep on the home, as with any home, it is advisable to hire a professional for more extensive repairs and renovations.  Your homeowner's manual outlines maintenance requirements.

Once your home has left the factory, the HUD Code does not include provisions for additions and alterations.  Such modifications may jeopardize your home warranty.  They may also create malfunctions or an unsafe home.

An approved addition should be a free-standing structure that meets local building codes, and you may need a construction permit from local authorities.

Failure to follow the manufacturer's instructions on maintenance and renovations can void the manufacturer's warranty, as well as lessen the value and life of your home.

Like any home, while your mortgage payment may be your biggest expense, you will have other regular and periodic expenses, such as property taxes and service fees for water and utilities.

While theoretically a manufactured home can be moved after its initial placement, it is neither common nor advisable to do so.  If you relocate, make sure you use a professional transporter; NEVER try to move the home yourself.  Cost is another consideration in moving the home.  Besides transport expenses, which include licensing fees to take your home through a state, you'll have to pay for a new foundation, installation and utility hook-ups.