Debunking Myths About Manufactured Housing
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The author, John McMullen, AMP, is Senior Policy Specialist, Residential Policy at the Mortgage Bankers Association.
Manufactured housing offers an affordable, high-quality, and scalable solution to address the nation’s housing shortage. Built efficiently in off-site facilities and regulated by federal construction standards that supersede state and local codes, modern manufactured homes are cost-effective, energy efficient and quicker to build than traditional site-built housing. Despite these advantages, misconceptions about manufactured housing persist. This guide corrects common misconceptions with facts, providing a clearer understanding of manufactured housing’s benefits.
Myth #1: Manufactured Homes Are Poor Quality
Fact: The manufactured homes of today are a far cry from what existed prior to Congress implementing the National Manufactured Housing Construction and Safety Standards Act (MHCSS) of 1974. The MHCSS gave rise to the Department of Housing and Urban Development (HUD) Code that includes standards for health, safety, energy efficiency and durability.
The HUD Code distinguishes manufactured homes—built to federal standards after June 1976—from mobile homes, a term commonly used for pre-HUD Code homes. It also mandates compliance with wind, thermal and roof load zone requirements. Modern manufactured home builders meet and exceed this HUD Code to deliver innovative and quality homes at attainable prices. Many manufactured homes are built to the Department of Energy “Energy Star” or “Zero Energy Ready Home” specifications, and include smart thermostats, low-E windows, LED lighting and other features that are designed to make your home more efficient and help borrowers save money on their annual energy bills and lower the ongoing costs of homeownership In the face of rising housing prices and an inventory shortage, manufactured housing offers quality homeownership without compromise.
Myth #2: Manufactured Homes Do Not Appreciate in Value
Fact: A common misconception is that manufactured homes do not appreciate as much as site-built homes. However, data shows that modern manufactured homes—especially those permanently affixed to land—appreciate at a rate comparable to site-built homes.
According to the American Community Survey, from 2018 to 2022, manufactured housing appreciated 36% compared to 40% for site-built homes. A Lending Tree study also found manufactured housing appreciated similarly to site-built homes over a five-year period.
In October 2024, the Federal Housing Finance Agency (FHFA) began including manufactured homes prices in its Quarterly Housing Price Index (HPI) along site-built home prices to track appreciation and median home prices. The FHFA reported that between Q2 2023 and Q2 2024, the house price index for manufactured homes rose 7.9%. Over the long term, from Q1 2000 to Q2 2024, index values increased 212% for manufactured homes, nearly identical to the 213% increase for site-built homes.
Like site-built homes, the value of a manufactured home depends on factors such as location, upkeep, and market conditions. Since 2000, the value of the land has, on average, appreciated 2.35 times the rate of the structures.
Myth #3: Manufactured Homes Look Cheap and Unattractive
Fact: Modern manufactured homes are built with a variety of styles, floor plans and finishes, offering options comparable to traditional site-built homes. Many feature durable flooring, energy-efficient appliances, and open-concept layouts.
Manufactured homes range in size from compact models under 1,000 square feet to larger designs exceeding 2,000 square feet. Buyers can choose from flexible layouts, such as converting an extra bedroom into a den, creating a primary bedroom suite, or incorporating multiple living areas. Standard design elements include kitchen islands, standalone bathtubs, and built-in storage.
Exterior designs have also evolved, with many manufactured homes now including porches, attached garages, and contemporary architectural styles. These options allow for a level of customization that meets a variety of homeowner preferences.
Myth #4: Financing a Manufactured Home Is Difficult
Fact: While financing terms depend on whether the home is titled as real or personal property, homebuyers have access to multiple financing options, including FHA, VA and conventional loans. Manufactured home financing is more accessible than many people realize. The key factor is how the home is titled:
• Real Property: If the home is permanently affixed to land owned by the borrower, it can be titled as real property and qualify for traditional mortgage financing. Buyers may be eligible for FHA Title II loans, VA loans (for qualified veterans), or conventional financing through programs like Fannie Mae’s MH Advantage or Freddie Mac’s CHOICEHome. These loans often offer competitive rates and terms similar to site-built home mortgages.
• Personal Property (Chattel) Loans: If the home is not permanently affixed to land or is placed in a leased-land community, buyers may need a personal property loan (also known as a chattel loan). While these loans typically have shorter terms and slightly higher interest rates, they provide a viable path to homeownership for many buyers.
MBA actively advocates for expanded financing options and increased lending limits, ensuring greater accessibility for both lenders and borrowers.
Conclusion
Manufactured homes offer an affordable, high-quality alternative to traditional site-built housing. Dispelling outdated myths allows us to recognize manufactured housing as a practical and attainable homeownership solution.
For more information, visit mba.org or contact John McMullen, AMP at 202-557-2706.
