---
title: "What Is a Manufactured Home? The Pros and Cons"
description: "Manufactured homes offer an affordable homeownership option for some families, but consider the pros and cons before making a purchase."
publishDate: 2020-11-16
author: "K Hovnanian Homes"
category: research
tags: ["building", "manufactured home", "new construction home"]
canonical: https://www.khov.com/blog/what-is-a-manufactured-home-pros-and-cons/
markdownUrl: https://www.khov.com/blog/what-is-a-manufactured-home-pros-and-cons.md
---

Homeownership has always been part of the
American dream. Today, we have numerous choices when it comes to home buying.
From a modest condo to an imposing mansion, there is [a type of home for
everyone](https://www.khov.com/blog/types-of-residential-homes/). One of the choices available to U.S. home buyers is manufactured
homes. Typically priced much lower than traditional site-built homes,
manufactured homes are particularly attractive to young families just starting
out or retirees looking to downsize.

## **What Is a Manufactured Home?**

So, what is a manufactured home? Is it
just a fancier term for a mobile home? Not quite. A manufactured home can be
described as a home formerly known as a mobile home, much improved. For a more
technical definition, [a
manufactured home is a factory-built home built after June 15, 1976](https://mobilehomeliving.org/faqs-about-manufactured-homes/). It is on that date that the federal standards
regulating the construction of mobile homes, set by the U.S. Department
of Housing and Urban Development (HUD), went into
effect. So if you are buying a prefabricated home built before 6/15/76, you are
buying a mobile home, but if your choice is a new prefabricated home or one
built after that date, it’s a manufactured home.

![](https://www.khov.com/api/image/transform/?src=https%3A%2F%2Fauthoring.khov.com%2Fglobalassets%2Fimported-wordpress-blog-images%2Fmanufactured-home-2-1024x655_7edb8247.jpg&width=900&modern=true&maxAge=2592000)

Let’s take a brief look at
the history of prefabricated homes and the fundamental differences between earlier
mobile homes and modern manufactured homes.

Mobile homes appeared on the
scene in the early 1900s, when, in order to find jobs, people had to move
frequently to wherever they could find employment. The
structural designs of these mobile homes resembled what we might think of as a
modern-day camper. The home itself was generally built on steel I-beams which
ran from end-to-end and could be set up on concrete blocks, wooden blocks,
metal stands or a concrete foundation at the desired location. The home came
with an exposed trailer coupler and wheels, making it easily movable. These
homes were mass produced to satisfy the demand, with no uniform quality or
safety standards.

## **Today’s Manufactured Homes**

Today’s manufactured
homes bear little resemblance to the mobile homes of yesterday. They usually
offer a choice of floor plans and interior options and can range from basic
models to elaborate designs featuring vaulted ceilings, drywall, fully equipped
modern kitchens, comfortable bedrooms with walk-in closets, and bathrooms with
recessed bathtubs and whirlpools.

Another fact to
consider about today’s manufactured homes is that they’re not really mobile.
They are meant to be moved only once. So when purchasing a manufactured home,
it’s important to decide where you are going to put it. Your choices are buying
or leasing a plot of land or leasing a lot in a manufactured home community.

![](https://www.khov.com/api/image/transform/?src=https%3A%2F%2Fauthoring.khov.com%2Fglobalassets%2Fimported-wordpress-blog-images%2Fmanufactured-homes-1-1024x655_b86ee26a.jpg&width=900&modern=true&maxAge=2592000)

Moving into an
established community will give you access to the utilities and amenities of
the community, at an extra cost, and you will be bound by the community’s rules
and regulations. Setting your house on your own land, on the other hand, will
give you more freedom and help maintain, and potentially increase, the value of
your home.

## **How to Buy a
Manufactured Home**

Most manufactured homes [are sold through retailers](https://www.nerdwallet.com/article/mortgages/buying-a-manufactured-home),
who offer new and pre-owned options. You may also find existing manufactured
homes through real estate agents, on some general real estate listing websites
and through online manufactured home marketplaces. And in some states, you can
buy from the owner of a manufactured home development.

Purchasing a manufactured home from
a retailer is not unlike buying a car. The dealer will have model homes to view
at its sales center. You are likely to have a choice of a single-, double- or
triple-section floor plan ranging from one-bedroom, one-bath homes of less than
500 square feet to four-bedroom, three-bath homes of more than 2,500 square
feet. You can select your floor plan, choose the customized features you want
and apply for manufactured home financing all on the same day. The dealer will
usually arrange the transport and installation.

If you decide to live in
manufactured home community, you’ll have to pay rent for the use of the land as
well as fees for shared amenities, services and utilities. Factor in those
costs when determining what home you can afford. If you want to place your
manufactured home on your own land, be sure to check with the local government
about zoning restrictions for manufactured homes. You will also have to check
on the local requirements for septic, electrical and building permits.

When financing a manufactured home,
you may have more limited choices than financing a site-built home. Unless you
own the land on which your home will sit, your purchase will be considered
personal property rather than real estate and you will have to take what’s called
a chattel loan rather than a mortgage loan. Chattel loans typically come with
higher interest rates, shorter loan terms and fewer consumer protections.

## **The Pros and Cons of Manufactured Homes**

So you think
that a manufactured home may be the right choice for you. Before you make your
final decision, be sure to consider the pros and cons of manufactured homes.

### **Pros:**

- Construction delays minimized - built at one facility, in
controlled environment, unaffected by weather
- Shorter completion time - streamlined construction processes and
stockpiled materials
- Select your features and finishes - some
level of personalization is usually available
- Peace of mind - reliable
quality and safety standards, built to the HUD Code
- Within your budget - more
affordable than stick-built homes

### **Cons:**

- Availability and cost of suitable land
- Extra costs imposed by manufactured home community
- Fewer choices and higher costs of financing
- Fewer personalization options and amenities
- Lingering stigma of mobile homes
- Questionable long-term value;
slower, if any, appreciation

Manufactured
homes offer an affordable homeownership option for some families, and the
improvements in their quality and safety have made them a more desirable option
in recent decades.

At K. Hovnanian Homes, however, we believe that site-built homes offer the best quality, choices and value. We build new home communities across the U.S. and take pride in the quality of our homes, meticulous attention to detail and excellent customer service. To customers desiring shorter build times, we offer our Quick Move-in homes — site-built homes with carefully selected options and upgrades — typically available for thirty-to-ninety-day delivery.

### [**Find our communities in your state**](https://www.khov.com/)** and contact us to help you start your home buying journey.**