Why Manufactured Homes Deserve a Second Look

Manufactured homes might be among the most misunderstood housing types in real estate, so I was thrilled to discuss this topic on Real Estate on the Up with my guest, Josh Duclos.

Josh, a real estate professional specializing in manufactured homes, brings decades of experience in sales and real estate. He shared invaluable insights about manufactured homes, especially their affordability, durability, and unique requirements in places like Florida.

If you’re curious about what makes manufactured homes a great option or want to know more about financing, insurance, and ownership considerations, you’re in the right place.

Here’s a breakdown of our conversation and why manufactured homes might be just what you’re looking for.

Tune in to our full conversation: 

Clearing Up the “Mobile Home” Confusion Clearing Up the “Mobile Home” Confusion

First, Josh helped us clear up a common misconception: the difference between mobile homes and manufactured homes. Here’s the scoop:

• Homes built before 1976 are typically known as mobile homes.
• Homes built after 1976 are classified as manufactured homes and are constructed according to HUD (Housing and Urban Development) standards.

The distinction matters, especially regarding durability and safety. Manufactured homes are placed on blocks and secured with close-set tie-downs, making them resilient even in challenging weather. In fact, since 1996, HUD has required stronger, closely spaced tie-downs, a necessary upgrade that adds stability and durability, especially in hurricane-prone areas like Florida.

Stability and Strength: Built to Weather the Storm

One of the highlights of our talk was the surprising durability of manufactured homes. Josh explained that manufactured homes have gotten a bad reputation over the years, largely because people don’t realize how much their construction has improved.

Today's manufactured homes can withstand rough weather conditions with reinforced tie-downs and metal or shingle roofing options. Josh shared that even a 1960 mobile home he sold recently has withstood multiple Florida hurricanes without major damage. For those concerned about safety, manufactured homes are a lot more solid than most would expect, thanks to:

• Heavy-duty tie-down systems: Strong straps secure manufactured homes, making them resistant to high winds.
• Metal roofing options: Metal roofs are popular for their 50-year lifespan, something that insurance companies highly value.

Financing Your Manufactured Home

Josh also shed light on financing options for manufactured homes, which can differ from traditional single-family homes. Here are a few key takeaways:

• Newer Homes (post-1976): These typically qualify for 30-year financing.
• Older Homes (pre-1976): These may qualify for shorter-term financing, around 15 years, but only if they pass a four-point inspection.
• Rented Lots: Financing can be trickier if the manufactured home is on leased land. The options can be limited since the house is technically depreciating, but some lenders will still finance homes on rented lots.

A knowledgeable mortgage broker makes a big difference in finding suitable options here. Working with a broker who understands manufactured home financing can help secure better terms, mainly if you’re dealing with an older home or a rental lot scenario.

Choose Wisely: Owned Land vs. Rented Lots

One of the most critical decisions you’ll make with a manufactured home is placing it on rented or owned land. The choice can affect everything from financing to long-term value. Here’s what Josh had to say:

• Rented Lots: Homes on rented lots are typically cheaper in the short term but lose value over time. Similar to a vehicle, their titles are transferred through the DMV.
• Owned Land: Manufactured homes on owned land retain more value, similar to traditional houses, making them a smarter investment if you plan to stay long-term.

If you’re looking for a forever home, Josh advises going for owned land, even if the up-front cost is higher. Rented lots may seem affordable, but rent hikes can add up quickly, especially in popular retirement communities.

A Few Things to Watch For

Not all manufactured homes are crafted equal, and Josh pointed out some red flags to be mindful of when buying. If you’re shopping for a manufactured home, here are a few inspection tips he mentioned:

• Check Leveling: Look for separation or unevenness in joints. A shifted foundation could mean more significant leveling issues.
• Inspect for Water Damage: Stains on ceilings or soft spots around windows can signal leaks.
• Old Plumbing: Polybutylene pipes, which were standard in the 1980s and early 1990s, can be a problem for insurers and often need replacing.

For more insights, you can also learn from real estate podcasts that discuss these issues in depth. Josh recommends having a professional inspector evaluate any potential home to avoid hidden problems and ensure the property meets lender and insurance requirements.

The Financial Benefits of Choosing Manufactured Homes

Let’s face it: affordability is a huge selling point for manufactured homes. Josh highlighted how manufactured homes provide a comfortable, budget-friendly option for retirees and budget-conscious buyers. With the average cost of a traditional single-family home on a lake now reaching around half a million dollars, manufactured homes offer a much more manageable alternative, often costing between $250,000 and $300,000.

Manufactured homes are brilliant for those looking to save or stretch their retirement funds. They allow you to avoid the burden of a large mortgage and give you more freedom to enjoy life without significant debt.

Community and Lifestyle Benefits

Manufactured home communities in Florida are especially popular for retirees who want to stay active without breaking the bank. Josh recommended two sought-after communities in Lake County: Lake Francis and Fox Run. Both are ideal for residents 55 and older and offer a variety of amenities that make them appealing places to call home. With access to lakes and boating facilities, communities like Fox Run can provide perks many traditional homes don’t offer.

Your Key to Smart, Affordable Living

My conversation with Josh Duclos shed light on the value and versatility of manufactured homes in today’s market. With affordability, durability, and unique community options, manufactured homes can be a wise choice for those seeking a budget-friendly lifestyle without sacrificing comfort.

By understanding the differences between mobile and manufactured homes, navigating financing options, and choosing the proper setup—whether on rented or owned land—you’re setting yourself up for a secure and enjoyable homeownership experience.

Ready to explore affordable homeownership options?

Tune in to the Real Estate On the Up Podcast.

We feature expert insights, practical advice, and real stories that shed light on unique property options and the complexities of financing and finding your ideal community.

Whether you're new to buying, an experienced investor, or simply interested in the market, there’s something beneficial for all.

Join us to gain the knowledge necessary to make smarter real estate decisions and simplify your journey.