Frequently Asked Questions about Manufactured Homes
Frequently Asked Questions about Manufactured Homes
If you have decided that a manufactured home may be the home choice for you, but you still want to know more about the purchase and move-in process, read on to find the answers to the most frequently asked questions.
What can I afford?
Your consultant will meet with you to “pre-qualify” you for your mortgage (if you’re placing your home on private property) or for your consumer installment loan (if you’re placing your home in a land-lease community). He or she will work with you to determine your budget, give you an idea of your borrowing capacity and down payment requirements, and determine the monthly payment you feel comfortable with. That monthly cost will then be translated into the price of a home.
How do I get financing?
Your consultant can arrange financing. However, if you prefer, you may choose to finance your home through an outside lender, bank or credit union.
Will the financing be in the form of a mortgage?
Your loan will be a mortgage only if land is part of the purchase, or if you already own the land and can use it as security for the loan. If so, the mortgage works very similar to a loan for a site-built home, with the same closing costs and fees.
What if I don’t own land and wish to move into a land-lease community?
If you place your home in a community, then the loan is for the home itself and is called a consumer installment loan. It takes less time to process and does not have the “up front” costs associated with a mortgage, although a down payment (usually between 5 and 10 percent) is required. Your consultant will assist you in finding a community in your area that meets your needs.
What other costs can I expect to pay?
While your home loan payment may be your biggest expense, you’ll have other regular payments. They may include utilities, property taxes, land-lease fees, insurance, routine maintenance and other service fees such as water and sewer. Today’s manufactured homes are built to meet new national energy standards set by the Department of Housing and Urban Development. These standards ensure that your home is well insulated and help reduce your monthly energy costs.
Will buying a manufactured home offer tax benefits?
Manufactured homes are not only affordable, they also represent a good investment. Financing your manufactured home will allow you to take a tax deduction for your interest cost. You may wish to consult an accountant to determine your approximate tax savings.
What warranty coverage is offered on the home, its transportation and installation?
All manufacturers offer a written warranty that should cover structural workmanship, factory-installed plumbing, heating and electrical systems, and factory-installed appliances, which also may be covered by separate appliance manufacturer warranties. However, there are important differences among warranties. For example, manufacturer warranties usually do not cover installation and transportation of the home, but you may be able to get this coverage through your retailer or contractor. Be sure to check coverage before you buy.
Are manufactured homes built to the same codes as site-built homes?
Manufactured homes are built to a set of standards as tough as those facing the site-built home builder, The Federal Manufactured Home Construction and Safety Standards. The Department of Housing and Urban Development enforces these standards through the National Conference of States on Building Codes and Standards. The code covers design, construction, durability, strength, fire resistance, energy efficiency and more.
How will I know what to order?
Your retailer’s professional home consultants are a vast resource of information about options available both in construction and interior amenities. They will help you to decide on floor plans (or help you to custom design a plan) and the various options and added features that are available.
How long will it take to get my home?
Construction schedules vary by type of home and location. Generally, a home placed in a manufactured home community may take as little as 30 days. A custom-designed manufactured home placed on private property may require 90-120 days from excavation to move-in. Your consultant will give you an estimated schedule once your home and location have been selected, and financing has been approved.
Do I arrange for site improvement/basement building if my home is going to be on a private lot?
A professional, licensed building contractor should arrange for site improvements and a basement or crawlspace. Your consultant may have a contractor on staff or can recommend a general contractor to meet your needs. At no time is it recommended that a non-licensed person be responsible for the site improvements or set-up of your home.
How does everything get connected—do I have to get any permits?
As in any home-building project, local permits are needed. Your consultant and/or general contractor can assist you in the steps necessary to obtain the proper permits.
Still have questions? For more information about manufactured homes, visit www.welcomehomeohio.com or contact the Ohio Manufactured Homes Association, 244 Bradenton Avenue, Dublin, Ohio, 43017-3540; 614.799.2340.