03/30/2024
Manufactured Homes versus Modular Homes. Do you know the difference? 
Manufactured Homes, (Are one unit assembled in a factory and shipped in one piece to be placed on a property).
These homes are NOT the same as a Modular Home, (built in a factory in sections and delivered in sections to a property to be assembled together on a fixed foundation)
A Modular Home built in a factory in sections, shipped to and assembled in sections, to be assembled and affixed to a permanent foundation, is more comparable to a stick built home. Per Appraisal Criteria it can be appraised similar to a stick built home.
A Manufactured Home (Double Wide) is NOT considered a permanent fixture on Land. They are not considered affixed to land and considered to be removable from the location.
Over improving the interior of a manufactured home, might improve “buyer demand” for the home, but doesn’t improve the appraisals valuation of the home by very much, if at all.
If a manufactured home sits on land with ownership rights to the land, it’s usually the land that holds more value than the manufactured home.
If the manufactured home is sitting on a Leased Lot without ownership rights, the manufactured homes weight in valuation is according to its condition, location, demand for the location, and demand for the amenities of the community it resides in.
In 1974 the National Mobile Home Construction and Safety Act was created and followed in 1976 by a HUD code which set federal construction standards for manufactured homes for:
* Frame requirements
* Thermal protection
* Plumbing / electrical
* Fire safety
* Energy efficiency
In order to get a loan for a manufactured home. It requires being mounted properly on parged cinderblock peers, or on a foundation or slab.
The loan usually requires a structural engineer to inspect the type of foundation or peers the Home is set on.
The appraisal criteria requires the home to use, relevant comparable properties of other similar manufactured homes.
Any home manufactured in a factory will have a HUD Certification Tag usually located on the outside end of the home or in a closet or utility closet. Occasionally, you will find the tag in a kitchen cabinet.
A Modular home typically carries a Higher Valuation on an Appraisal than a Manufactured home.
Manufactured homes built before 1974 are considered per home Lending and Appraisal standards, as more of a depreciating item, not affixed to land.
