Understanding The Differences: Manufactured Homes VS. Mobile Homes

We often get questions from homeowners and potential buyers about the differences between manufactured homes and mobile homes. The distinctions between these two types of homes are not only technical but also involve regulatory, construction, and classification differences that can affect homeownership in various ways. Today we will help clarify these differences, helping you make informed decisions whether you’re buying, selling, or insuring your home and how an inspection can give you a good idea of where things are with the maintenance and upkeep of these types of homes.

Historical Context And Understanding Terminology

Mobile Homes: The term “mobile home” refers to factory-built homes that were constructed before June 15, 1976. Before this date, there were no federal building standards in place for mobile homes, and they were primarily designed for temporary or seasonal accommodation, with mobility being a key feature.

Manufactured Homes: Post-June 15, 1076, the U.S. Department of Housing and Urban Development (HUD) implemented the Manufactured Home Construction and Safety Standards (HUD Code). This code significantly elevated the construction, durability, and safety standards of factory-built homes. Homes built according to these standards are referred to as “manufactured homes.” Unlike their predecessors, manufactured homes are designed with the intention of being a more permanent residence, although they can retain the ability to be moved.

Construction And Safety Standards

Manufactured Homes: Manufactured homes are built entirely in a factory setting and then transported to the home site. They must comply with the HUD Code, which regulates design, construction, strength, durability, transportability, fire resistance, and energy efficiency. The HUD Code also requires manufactured homes to have a permanent chassis, a feature that distinguishes them from other types of prefabricated housing.

Mobile Homes: Since mobile homes were built before the HUD Code was established, they do not adhere to these stringent standards. As a result, older mobile homes may not provide the same level of safety, durability, or energy efficiency as manufactured homes.

Classification And Financing

Manufactured Homes: Manufactured homes may be classified as real property or personal property, depending on how the home is sited and the owner’s land ownership. When a manufactured home is permanently affixed to a piece of land owned by the homeowner, it may be classified as real property, possibly  making it eligible for traditional mortgage financing options.

Mobile Homes: Mobile homes are typically classified as personal property, particularly if they remain movable or are located in a mobile home park. Financing for mobile homes may be more challenging to secure, with personal property loans being a common financing method, which may  have higher interest rates and shorter terms compared to mortgage loans for real property.

Resale Value And Depreciation

Manufactured Homes: Manufactured homes, particularly those classified as real property, can appreciate in value over time similar to traditional stick-built homes. Factors influencing appreciation include the home’s condition, location, and how well it has been maintained.

Mobile Homes: Older mobile homes, especially those not fixed to a permanent foundation or not properly maintained, tend to depreciate over time. However, like manufactured homes, location and upkeep can impact their value.

Bottom Line

Understanding the differences between manufactured and mobile homes is crucial for homeowners, buyers, and sellers. Manufactured homes offer modern safety and construction standards, potentially appreciate in value, and can be financed more similarly to traditional homes when permanently affixed to land. Mobile homes, while offering affordability and flexibility, come with their own set of challenges, including financing and depreciation. 

Regardless of whether you need a mobile home or a manufactured home, you need to have a good idea of what it is you are purchasing. Having a good idea of what the maintenance and upkeep have been like can make a big difference for you in insuring this property and in your health and safety for the future.

We’re Here To Help

Feel free to call us if you have questions at 407-319-4608. You may alsoschedule your inspection or find additional information on ourwebsite.