Definition
A manufactured home is a type of housing built in a factory to federal standards and then transported to a home site. These homes are sometimes called mobile homes or prefabricated homes.
Understanding Manufactured Homes in Mortgages
In the mortgage process, manufactured homes often require specific loan types. These homes are built off-site and transported to their location. Loans for manufactured homes may differ from traditional home loans in terms and conditions. Example: If a manufactured home costs $60,000, a lender might require a down payment of 5%, which would be $3,000. It's not the same as a mobile home; manufactured homes are built to HUD standards, ensuring quality and durability. They offer an affordable housing option with modern amenities, often challenging the outdated perception of what a manufactured home is.
