Manufactured Housing makes up 37% of all new housing in the United States. That is 1 out of 4 homes.
Sales of manufactured homes has grown 400% in the last ten years.What is a Mobile (Manufactured) Home
The home has a structural frame or chassis that supports the complete unit of walls, floor, and roof. Underneath is a running gear consisting of wheels, axles, and brakes for transportation to the home site.
A manufactured home is different from a travel trailer, in that a trailer can be towed behind the family car. Manufactured homes are not built for traveling and cannot be towed by the family car. They are built to be a permanent residence, although they can be transported to different sites by professional movers.
Mobile homes originally were 8 feet wide, then 10, later 12. Now 14, 16, and 18-foot-wide models and multi-sections (20-28 feet) are available in most areas.
Local conditions and regulations have a great deal to do with the types and sizes of homes available in any specific place. All 50 states now permit 14-foot-wide homes to be moved over highways. In every area, the home retailer should know the local regulations and the necessary procedures for moving a home. Check with the retailer before you buy.
Choosing A Retailer
You should choose a retailer as carefully as you choose your manufactured home. Ask the retailer for names and addresses of former customers you may contact. Contact these customers and ask if their homes are as good as they were represented to be, and determine whether after-sale service, if needed, was readily provided.
Avoid a retailer who will not quote the overall cost of the home, but instead says you can buy a home for so many dollars per month. Also avoid a retailer who uses high pressure sales tactics. If you have doubts about a retailer, contact the local Better Business Bureau to find out if there have been any complaints lodged against the firm.
Typically, a manufactured home includes: a living room; a kitchen with range and refrigerator; dining area or separate dining room; one or two bathrooms; two or more bedrooms; cabinets and closets; an automatic heating system; a water heater; built-in furniture; carpeting and other floor coverings; and curtains or draperies.
When considering the price of a home, you should take into account items, like those above, that will not have to be purchased separately at retail prices.
Optional items that can be purchased as part of the home include: central air conditioning (a unit can be added, at any time); laundry equipment (washer and dryer); dishwasher; garbage disposal; central vacuum cleaning system; and stereo equipment.
Generally, the basic purchase price will include transporting the home to the site of your choice within a prescribed area and setting it up for initial operation. However, it is always wise to ask whether this is included in the price, and to have it written into the sales contract.
Appliances
Most homes are supplied with a combination of electrical and gas (or oil) appliances. The furnace usually is a warm-air system that burns oil or gas. The cooking range and water heater may use either gas or electricity. The refrigerator and dishwasher (if there is one) are electric.
Some modern communities have central systems for distributing heating oil or gas to individual homes. The type of gas appliances in the home must be matched to the type of gas available in the community where you move. Your retailer must take this into consideration when ordering any home from the manufacturer, so you should be prepared to tell him where you plan to place the home.
Manufactured homes are also available in total electric models; which can be an advantage in areas where electric rates are low. Very often the choice of a gas, oil combination, or all electric, depends on the availability, and relative costs of these services in a specific area.
Extras and Options
In addition to the price of the home, there are some extras that must be included in your budget. Some are required by most communities and will probably add a minimum of 15 percent to the cost of your home. Most extras can be decided on at the time of purchase, and included in the financing. The following extras should be budgeted for:
If your home is not going to be located in a land-lease community, you should make certain that the home and the anchoring system, including foundations, are installed in accordance with the manufacturer's instructions and local building codes.
Similarly, if the community where you locate does not require anchors, it is still important to arrange with the manager to see that they are installed. Home anchoring systems, like seat belts in cars, are of no value if they are not fastened. Some lending institutions may require this as a condition of financing. You may also benefit from a lower insurance premium if the home is properly secured. Check with your insurance company.
Additional options that are available include: garages, outdoor storage cabinets, cabanas, patios, awnings, porches, and screened rooms. These are available from the retailer, or a manufactured home supply office.
While considering financing arrangements available through retailers, a home buyer, also, should shop around for other loan sources. Investigate the financial arrangements that can be made through other sources, including commercial finance companies, banks, credit unions, and savings and loan associations. Many of these organizations have home loan programs.
The federal Truth-in-Lending Law requires that lenders disclose the annual percentage rate being applied on loans.
The lender must tell you the annual percentage rate you are being charged in simple interest terms.
Be sure to check all financing arrangements available. Make certain the finance costs are clear. Do not sign any contract until you understand exactly what you will receive and what it will cost. Do not sign any contract with blank spaces. Do not rely on any oral agreement. Have all terms put in writing and save a completed copy for your records.
Ordinarily, there will be no closing costs or attorney's fees to pay in financing and insuring a home. Title searches are not required. However, if you are purchasing your own property on which to place your home, there may be closing costs. Also, you should have a title search performed to be certain the ownership of the land is clearly defined and there are no prior liens, or claims on it. Title insurance offers additional protection against unexpected claims.
Insurance (fire, theft and physical damage) is required by lending institutions and, usually, is included in the financing package. The cost of the insurance premium for the entire period of the loan can be computed in advance, along with the interest on the loan. Thus, the total insurance premium for a certain number of years will be included in the face amount of the loan before dividing the number of months to determine the monthly payments. This method of handling the insurance makes payment of the premiums automatic, and protects you against any increase in rates which might otherwise apply during this period.
Do not assume, however, that the insurance required by the lending institution is all that you need for your own protection. The required insurance may be just enough to protect the lender's interest in your property; you may want to add extra protection to cover its full value.
If you pay cash for the full purchase price of your home, and do not have a lender requiring insurance, you still should obtain a policy for your own protection. In addition to fire, theft and physical damage insurance on the home itself, you may want a personal effects policy for your belongings. Also, credit life insurance will pay the remaining balance on the home in the event of the purchaser's death, thereby assuring survivors a debt-free home.
Selling Your Manufactured Home
When you want a larger, or more luxurious home you can sell your present home through a broker just like a site-built house. However, you may run into some problems. Used manufactured homes, in good condition, frequently are sold in place, through the cooperation of the community owner; but some community owners may try to charge you an exit fee for leaving your home behind. Although entrance and exit fees are illegal in many states, they still can occur in some areas. Beware. Find out before you move into a community if you will be charged these fees. If the answer is yes, you may want to look for another community.
Manufactured Home Standards
All homes built for sale in the United States after June 15, 1976, must conform to the Federal Manufactured Home Construction and Safety Standards established by HUD.
However, prior to 1976, forty-six states required that homes comply with similar requirements of the Mobile Home Standard established by the National Fire Protection Association (NFPA), and adopted by the American National Standards Institute (ANSI).
Homes built prior to June 15, 1976, in accordance with the Mobile Home Standard, do not have to be modified to meet HUD requirements.
The federal standard covers the following basic parts of the home's construction: planning considerations (including ceiling heights, light, ventilation, and exit facilities); fire safety (for example, smoke detection systems, pop-out egress windows and flame spread limitations); body and frame testing (such as structural load tests and test procedures for roof trusses); thermal protection; plumbing systems; electrical systems; and transportation (covering such things as design of the house to withstand rigors of highway movement).
If the home is built according to the federal standard, the following items must be displayed to assure the buyer that the structure is built as specified:
The manufacturer, or seller, of a home will usually provide a warranty which guarantees the quality and workmanship of the home for a specified time. This warranty, also, tells the buyer what to do if a problem arises. Under the federal warranty law, warranties must be designated by the manufacturer as a "full (duration) warranty" or as a "limited" one. Home manufacturers and the makers of appliances for homes provide either "full" or "limited" warranties. The careful buyer will compare the terms of each. Especially important are the service provisions of a warranty which should be compared in terms of whether you plan a second move.
Be sure you recognize the difference between the manufacturer's, and the retailer's, responsibilities in setting up and servicing your home. You may be headed for trouble unless these are defined at the time of the sale, and put in writing.
Any warranties provided should be kept in one place, or they may be affixed to the covered products.
Even if your home and some of its appliances do not have a written warranty, the buyer does have implied warranties under state laws which require a home, and its appliances to work normally and perform properly.
Some states have special laws to protect the owners of manufactured homes. Also, the Federal Trade Commission has authority to issue additional requirements under the federal warranty law. Thus, the buyer of a home should keep up-to-date on the rights afforded under this law.
When you start thinking about living in a manufactured home, you also should begin to think about where the home will be located. Shopping for a location goes hand-in-hand with shopping for your home. This may turn out to be a simple task, or it may bring up questions that will strongly influence your choice of the home itself.
The retailer may be operating his own rental community. If you like the community, and he will place your home in an acceptable location, you can make arrangements directly with him.
On the other hand, the retailer may not operate a community, or it may be full. However, he may recommend another community that accepts your type of home. If you like that community, you should make arrangements to rent your space in that location, before signing papers to buy the home.
You may prefer to locate your home on your own private property. Whether or not you can do this may depend on the zoning regulations in your area. Check before you buy.
No matter where you locate your home, some other factors to consider are: public transportation, utilities, stores, places of worship and recreational facilities.
There are thousands of manufactured home communities in the U.S. Check your own locality. Housing developments are listed in the yellow pages. Be sure to see all the home communities available before making your decision. Rents vary from $50 monthly to $300 or more, depending on the age of the community, conveniences, and services offered.
When choosing a community, look beyond such obvious factors as appearance, size of lots, and landscaping. Find out in advance who is responsible for yard maintenance, garbage removal, and whether this is covered in your rent. Inquire about laundry facilities, if you will need them. Decide if you want to pay for the use of luxury facilities, such as a sauna, swimming pool, tennis court and clubhouse.
Find out about rules and regulations of the community. Ask, for example, if children are allowed; whether you can have pets; if and when homes must be skirted; and what are the parking regulations? Be suspicious of questionable practices, such as regulations requiring you to use the services of a particular vendor.
Sometimes when a new community is filled, often with the help of attractively low rental fees, the owner will sell it to a management company, when may then substantially increase the rent for sites. If you do not have a lease, there may be nothing you can do.
To avoid this situation, look for an established community or one being developed by a company for a long-term investment purposes. Try to obtain a long-term lease, although this may be difficult.
A few states require written leases for tenants, but most do not. You might be able to find a cooperative community where the residents are the owners, and hence make their own decisions.
Do not accept a community owner's oral promises of future facilities such as a recreation house, or pool. If such promises are made, get them in writing in your contract, and find out if your rent will cover the cost of using these facilities.
Do not be in a hurry to select a community. Visit it on several occasions, at different times of the day, and in bad weather, as well as good.
Talk to residents for their opinions about the community. Talk to the manager. Ask yourself if you are prepared to live up to the rules, and also find out if the rules are lived up to by other tenants. Find out exactly what is included in your rent and what is not.
Locating On Private Property
Perhaps you want to place your home on your own lot. This depends entirely on the regulations, and restrictions, of the county and township where you want to locate. Check into this thoroughly before taking other preliminary steps. In some locations permission can be obtained without too much difficulty; but in others it may be impossible. As a first step, go to the court house, or city hall, and obtain a copy of the zoning ordinances that apply to the area in which you are interested. Ask about obtaining a variance in the zoning, if one will be needed. Seek the advice of a local attorney, if you are confused about the regulations. In any event, do not buy a manufactured home until you know you can satisfy the local restrictions.
If you have been looking at homes, remember that the retailer may be able to give you valuable guidance about locating on private property, especially if he is not trying to get tenants for a community of his own.
After you find a private site that suits you, and know you can obtain any necessary approval, there are some other considerations:
In some areas the utility companies require that connections be made by their own technicians. In any case, be sure that the connecting is done by a qualified professional. If water and/or sewer hook-ups are not available, then you may have to dig your own well and install your own septic system. Check local regulations concerning these points.
RelocatingIf you later want to relocate your home, you will need to find a moving company. Firms specializing in the moving of manufactured homes have offices in major cities, and are listed in the yellow pages. Their rates and practices are regulated by state agencies, or by the Interstate Commerce Commission (ICC), depending on whether the move will cross state lines. Your cost will include permits and tolls, and the cost of any required flag cars.
After the move, spot-check the home to see if any damage has occurred, including such hidden damage as the selling of insulation material behind wall panels. It is a good idea to carefully examine the home for damage after every move, including the one to your initial site.
Tips To Remember
