What is a manufactured home?
The terms ‘manufactured home’ and ‘mobile home’ are often used interchangeably, but there are a few differences. Manufactured homes are technically only those built after July 15, 1976, because that is when stricter standards were set for mobile homes. These standards applied to design and construction, strength and durability, transportability, fire resistance, energy efficiency, overall quality, and performance of house systems (electrical, plumbing, heating and air conditioning). Manufactured homes are built and assembled primarily in factories. They are then transported to a site for use.
Mobile vs. Manufactured vs. Modular
- Mobile homes were those built prior to the 1976 Mobile Home Construction and Safety Act. These homes were easy to move and built with few production standards.
- Manufactured homes are those built after July 15, 1976. They are built in one piece. Once manufactured homes are transferred to their site, they are placed on wooden pillars, metal piers, a solid foundation or basement. These homes must adhere to federal regulations. Manufactured homes come in many styles and are usually fit with comfortable amenities.
- Modular homes are built in multiple pieces at factory facilities. The pieces are joined when they arrive on the site and are joined on solid foundation. Modular homes look more like a traditional home than other factory-built options.
Mobile and manufactured homes are popular in the United States today. The once negative stereotype of low value mobile homes is less applicable to modern manufactured homes. It is estimated that 17.7 million Americans live in manufactured homes. These are typically young adults and retirees. They are homeowners as well as renters. The affordability and value of a manufactured home is what draws people to this type of living solution.
Benefits of Choosing a Manufactured Home
- Manufactured homes are built at a fixed price in a factory setting. You are unlikely to run into the costs that arise when building a traditional home, like weather setbacks or subcontractors.
- The base cost of a manufactured home is much lower than a traditional house. A new manufactured house can cost half as much, per square foot, as a house.
- Manufactured homes are built to high safety standards. Federal laws require smoke detectors, escape windows, and limits on combustible materials around heating sources. You can be sure your manufactured home is safe.
- There are many floor plans to choose from and your manufactured home can have all the amenities you desire. Many have walk-in closets, bay windows and fully-equipped kitchens.
- Mobile home loans are available to make manufactured houses available to individuals wanting to own one.
Tyrone Woods Manufactured Homes Community offers mobile homes for lease and for sale. Purchasing a manufactured home is much more affordable than a traditional home. Homes for sale at Tyrone Woods range from $30,000 to $50,000. Although this is much more affordable than a house, it is still more than most people are able to pay up front. Because of this, partnered lenders are available to work with individuals of all financial backgrounds and are incredibly understanding of past financial hardship. Almost anyone can own their home with these manufactured options. If you do not qualify currently, lenders will also work with you to make future plans. Consider all the ways you could finance a mobile home.
Ways to Finance a Mobile Home
- FHA loans: You can get an FHA loan for a mobile home if the borrower does not own the land. The borrower must provide a signed lease for a mobile home plot. There are other requirements relating to maximum loan amounts and terms.
- Fannie Mae: The borrower has to own the land they intend to place their mobile home on to qualify for this type of loan. The land also must be titled to secure collateral for financing.
- Freddie Mac: To get this type of loan, a manufactured home must be permanently affixed to the land it sits on. The loan is attached to the home and the land.
- Chattel loans: These loans are personal property loans instead of real estate loans, which means the mobile home does not need to be affixed to land. For this reason, chattel loans are popular for manufactured home communities.
Chattel loans are a common way to finance manufactured and mobile homes. While traditional mortgages typically disqualify mobile homes, chattel loans are a great option. Chattel loans are technically personal property loans instead of real estate loans. These loans are designed specifically for movable property and are also applicable to vehicles, airplanes, boats and farm equipment. Chattel loans are popular for homes in manufactured home communities because they can be used when land is not owned by the owner of the manufactured home. A chattel loan is completely separate to the land that the manufactured home sits on.
Compared to a traditional mortgage, chattel loans typically have a higher interest rate and come with shorter terms. Buyers can own their mobile home quickly and easily using a chattel loan. Manufactured homes often allow for individuals to purchase a home more conveniently than a traditional house. Chattel loans have lower down payment requirements than a traditional mortgage, which may allow borrowers to get started paying for their home faster.
How can I get a chattel loan?
An individual with a stable job and fair to poor credit is typically able to get a chattel loan. Lenders associated with Tyrone Woods Manufactured Home Community work with all credit scores and income levels. If applicants have experienced a hardship in their past, they will not be dismissed. Even if you cannot get approved currently, they also can help plan for the future. This level of service and financial assistance makes it one of the best ways to finance a mobile home.
Tyrone Woods Manufactured Home Community
Located right outside Fenton, Michigan is Tyrone Woods Manufactured Home Community. This pet friendly living community is strategically located 30 minutes from Ann Arbor and Flint. It is also about an hour from Lansing and Detroit. Fenton offers plenty of its own amenities, like shopping, a historical downtown, dining, entertainment and education.
Tyrone Woods provides financing for individuals with various backgrounds. The average purchase payment is often $200 to $300 less per month than lease options. Minimum down payment typically matches a lease security deposit.
If you are looking to buy a home in Fenton, Tyrone Woods Manufactured Home Community is the place to look. Fully renovated manufactured homes are complete with spacious kitchens and master suites. Upgrades, like new appliances, new flooring, new utilities, metal roofing, sheds, central air conditioning and more are also available. There are down payment assistance and referral programs for extra financial support as well.
Purchasing a manufactured home is a great way to get all the amenities of a traditional house for a much lower cost. The value of manufactured homes is unmatched. This is a great way to achieve home ownership for millions of Americans.
Overall, manufactured homes offer the best of both worlds if you want to own your own home without the commitment of a traditional house. With a chattel loan, you can quickly and easily work towards this goal. Instead of constantly renting and moving, start owning your home today. Average closing time is just three weeks.
Tyrone Woods Manufactured Homes Community offers affordable purchasing and leasing options. Get started on your pre-qualification form or apply now to become a resident of the Tyrone Woods Manufactured Homes Community.