What Is a Manufactured Home? A Fresh Look On Prefab Housing

With interest rates shifting and the price of houses for sale often feeling out of reach, many buyers are searching for creative avenues into home ownership. One option that’s getting renewed attention? Manufactured housing.

Whether you’re looking to buy an affordable house in Los Angeles or on the opposite coast in Charleston, SC, the flimsy mobile home stereotype of the past is fading fast. Today’s manufactured homes are engineered in high-tech facilities, designed for energy efficiency, and offer a path to homeownership that is both functional and affordable. 

From the HUD code to the way you’ll finance your purchase, here is everything you need to know about today’s manufactured homes.

In this article:
What is a manufactured home?
Manufactured home vs mobile home
Manufactured home vs modular home
The build process
Manufactured home cost
Where you can put mobile homes
Financing a manufactured or mobile home
Manufactured home long-term value
Mobile home pros and cons
Is a manufactured home right for you?

What is a manufactured home?

A manufactured home is a prefabricated house built using standardized parts in a controlled factory environment, then transported to its final destination. In contrast, traditional homes are built on-site on a permanent foundation, with materials delivered to the property.

Manufactured homes are built on a steel chassis, which allows them to be moved by trailer. Once they arrive at their site, they are “set,” meaning they are anchored to the ground—either on a permanent foundation or using concrete blocks, piers, or tie-downs. While they can technically be moved again, the majority of manufactured homes never leave their first location. However, the ability to transport the home often means manufactured housing is considered a vehicle, and must comply with related tax and zoning laws.

The HUD code

By law, a manufactured home is defined as a dwelling built after June 15, 1976, and regulated by the Federal Manufactured Home Construction and Safety Standards, more commonly known as the HUD code. Unlike stick-built homes, which follow local or state building codes that vary based on location, every manufactured home in the U.S. follows the same federal standard.

This code dictates everything from the strength of the roof to the efficiency of the insulation and the safety of the electrical system. Like site-built homes, manufactured housing utilizes familiar building materials like drywall and lumber, and buyers can often choose from a range of layouts, finishes, and upgrades.

Manufactured homes vs. mobile homes

You’ll still hear people use “manufactured home” and “mobile home” interchangeably, because in a lot of ways, they’re the same thing: standardized, factory-built homes that are “mobile,” or transported to their final site. The main differences between the two lies in the build date and quality.

• Mobile homes: Constructed before June 15, 1976. These were built before the HUD Code existed. They often had lower safety and quality standards and are much harder to finance or insure today, but are often re-sold in parks at an approachable price point.
• Manufactured homes: Constructed after June 15, 1976. These are the modern, safe, and regulated versions we see today. The build quality is usually more solid and sophisticated, can be larger in size, and might even be affixed to a permanent foundation.

Why the distinction matters: If you are shopping for a manufactured home, checking the build date is key. Most lenders will only provide financing for prefab housing built after the 1976 cutoff—and some require the build to be even more recent, if they’ll finance the purchase at all. If you buy a pre-1976 mobile home, you’re likely looking at a cash-only purchase.

Manufactured homes vs. modular homes

On the other end of prefab homes is the modular house, which is sometimes confused with manufactured housing. While both manufactured and modular homes start off in a factory, that’s about where their similarities end. 

Modular homes are more like customizable flat-pack furniture—most of the home is built in finely tuned, fittable parts in a factory setting, then transported to the build site for the final assembly. Unlike a lot of manufactured homes, modular homes are removed from the trailer and then built on permanent foundations, maybe even with a basement or crawl space. They also need to follow local building laws and regulations—meaning they are treated like a traditional home by banks and insurance companies from day one.

The ability to prep the home site while the structure is factory-assembled means modular homes are quicker to build and are less expensive than traditional homes (with a base price of about $50–$100 per square foot), but in the end still require more labor, materials, and permitting than manufactured housing.

How manufactured homes are built

Manufactured homes are built in a controlled factory environment rather than on a traditional construction site. This approach allows builders to streamline production, limit weather-related delays, and maintain consistent quality throughout the build process.

1. Indoor construction: The entire home is built indoors. This means lumber stays dry, the drywall never sees a drop of rain, and adhesives are in prime conditions to cure, reducing the risk of warped materials.
2. Efficiency: Because factories build manufactured homes in bulk using standardized plans, they can order materials at a discount and use them with extreme efficiency, passing those savings down to the buyer.
3. Built-in inspections: In a factory, inspectors are present at every stage of the assembly line. Every joint, wire, and pipe is checked before a section of the home is sealed up and ready for transport.
4. Delivery to site: Once the structure is complete, it’s transferred via single, double, or even triple-wide trailers to its location to be installed, or “set.” This involves connecting any sections, hooking up utilities, and securing the unit in place via the chassis before the final walkthrough.

How much do manufactured homes cost?

The median price of a home in the U.S. currently sits at almost $430,000, according to Redfin data. Manufactured homes are significantly more affordable by comparison, with U.S. Census Bureau data showing average prices around $83,000 for a single-wide and $158,000 for a double-wide, not including upgrades.

While the home itself is more affordable, don’t forget to budget for:

• Land or site fee: Where you place your home will be, so have the site sorted ahead of time.
• Site preparation: Clearing trees, leveling the ground, pouring a concrete pad, and maybe even preparing a permanent foundation.
• Utility hookups: Connecting to water, septic, and electricity.
• Delivery fees: Depending on the build company and distance from the factory.
• Customization and finishes: Whether you opt for base-model options or higher-end materials and finishes can greatly affect your final total.

Where can manufactured homes be placed?

While manufactured homes can be a more affordable housing option, where the home is placed can play a big role in the overall cost. 

1. Private land

You buy a plot of land and place your home on it. This is often the gold standard for long-term value. When the home is permanently attached to a foundation on land you own, it is more likely to be taxed as “real property”—the same as a traditional house. This makes it easier to sell later and allows it to appreciate in value. However, land costs, local zoning, site and utility prep, and property access need to be taken into consideration before a manufactured home is purchased. 

2. Manufactured home communities (parks)

In this scenario, you own the home but (usually) lease the land from a community owner. You’ll pay a “lot rent” every month, which usually covers things like water, trash, and community maintenance.

• The upside: It’s a lower barrier to entry. You don’t have to spend thousands on property or prepping the land, and the setup is simple.
• The downside: You don’t own the land, even if you own the home. If the park owner raises the rent, your monthly costs go up—and there might not be a rent cap.

Can you finance a manufactured home?

Options for financing a manufactured home depend on how the home is installed, titled, and whether the land is owned or leased.

1. Construction-to-permanent loans
If you’re buying a brand-new manufactured home and already own—or are purchasing—land, a construction-to-permanent loan (often called a “one-time close” loan) can bundle the entire process into a single mortgage.

With this loan, one financing package covers the land purchase, site preparation (such as clearing, grading, or septic installation), the home itself, and final installation. During the construction phase, buyers typically make interest-only payments, which helps keep monthly costs lower until the home is complete. Once the home is installed and passes final inspection, the loan automatically converts into a standard 15- or 30-year mortgage.

To qualify, the home must be new and purchased directly from the manufacturer, placed on a permanent foundation, removed from the chassis, and meet HUD standards as well as local building requirements. The home must also be legally classified as real property.

2. Conventional and government loans
Some manufactured homes can still qualify for traditional mortgage financing if they meet certain requirements:

• The home was built after June 15, 1976 and complies with the HUD Code.
• The home is permanently fixed to a foundation that meets local and lender standards.
• The borrower is also buying the land the home sits on.
• The home is titled as real property, not personal property.
• The home is at least double-wide in size and will be a primary residence.

Fewer lenders offer loans for mobile or manufactured homes, but whether supported by Freddie Mac/Fannie Mae or FHA or VA, if the property meets the above criteria, you’re more likely to qualify for financing (granted you also meet the personal requirements for the loan type, such as credit score).

3. Chattel loans
If you are moving into a community or “park” where you lease the land, you won’t qualify for a traditional mortgage. Instead, you will use a chattel, or personal property, loan.

Banks see manufactured homes as personal, movable property, so a chattel loan acts similarly to an auto loan. The bank is financing the structure, not the land, which can be perceived as higher risk. Interest rates will likely be higher than a mortgage, you might qualify for a lower amount, and loan terms are usually shorter—but, approval can be quick and easy compared to conventional financing.

4. Dealer financing
A final financing option is by getting a loan directly through the manufactured home provider. Just like a car dealership, manufactured home retail dealers work with a network of lenders that provide financing at the point of sale—handling purchasing paperwork, factory coordination, and delivery timing all at once.

While it’s convenient and can be an option for buyers with unique credit situations, dealer financing might not come with the most competitive interest rates or loan terms.

Do manufactured homes appreciate in value?

The long-held belief in real estate is that a manufactured home depreciates like a car. The reality is that manufactured homes can—and do—appreciate. According to data from the Urban Institute, manufactured homes that are titled as real property have appreciated at rates nearly identical to traditional, site-built homes, growing over 200% since 2000. 

The catch is that appreciation isn’t guaranteed by the house alone: when you own the land and the home together, the home becomes a fixed part of a larger real estate investment. As the neighborhood improves and land values rise, your home’s value rises right along with it.

However, if the home is on leased land in a park, the value may stay flat or even decrease because the primary asset (the land) belongs to someone else.

Title elimination

Most manufactured homes come with a vehicle title from the DMV. Title elimination, or de-titling, is the legal process of surrendering that vehicle title and recording the home as a permanent improvement to your land.

This shift makes it easier for future buyers to qualify for traditional mortgage financing, which can improve resale value. Lenders and appraisers also tend to view de-titled homes as more permanent, helping support long-term equity.

Pros and cons of manufactured homes

Pros

• Affordability: You can often get twice the square footage for the same price, or less, as a traditional home.
• Speed: You can move into a brand-new home in months, rather than the year or more it takes to build on-site.
• Consistency: Factory builds mean no weather damage during construction and standard multi-point inspections.

Cons

• Financing: Unless you own the land and eliminate the title, your loan options may be more limited and carry higher interest rates.
• Zoning: Not every neighborhood or county allows manufactured homes, or they need to meet specific criteria, so you’ll need to check local laws carefully.
• Resale: The value depends heavily on land ownership, the age and condition of the structure, and if the home is set on a permanent foundation. Stigma might also affect the buyer pool, even as manufactured housing increases in quality and design.

Is a manufactured home right for you?

At the end of the day, a manufactured home can be a faster, more affordable path to homeownership—and manufactured housing is only getting better and more attractive as time goes on. 

A manufactured home might be a good fit if:

• You’re a first-time buyer looking to own a house at a more approachable price point. Even if on leased land, the monthly payments might be lower than renting in your area, allowing you to save at a greater rate.
• You’re a landowner who wants a quality, modern home without the stress and scope creep of a traditional construction project.
• You’re retiring and want to trade a high-maintenance family home for a brand-new, energy-efficient space—or live in a low-maintenance park community with others.

The mobile home image of the 1970s is fading fast, and today’s manufactured houses offer a homeownership solution that doesn’t require a lottery win—just a little bit of research and the perfect place to put it.