How to Buy a Manufactured Home
Buying a new home may be the most important purchase you will ever make. These homes come in a variety of sizes, styles, floor plans and prices. Manufactured homes can be installed on your own land, in a rental community or in a planned subdivision.
Manufactured homes are factory built to meet the Federal Manufactured Home Construction and Safety Standards, also known as the HUD Code. The Code, which is administered by the U.S. Department of housing and Urban Development (HUD), regulates the home's design and construction, strength and durability, transportability, fire resistance and energy efficiency. It also sets performance standards for the heating, air conditioning, plumbing, thermal and electrical systems.

Choosing a Home If you have decided that a manufactured home is right for you, consider the following issues. What Size Home And Floor Plan Do I Want? Manufactured homes come in a variety of sizes and floor plans that include spacious living rooms, dining rooms, fully equipped kitchens, bedrooms, family rooms and utility areas. Depending on the size of your home site, you can choose a single section or larger multi-section design. Homes range in size from 900 to 2,500 square feet and can be customized to meet your needs and preferences.   What Features Are Available? The interior design of your home can include custom cabinets, walk-in closets, bathrooms with recessed tubs and whirlpools and wood burning fireplaces. Because most manufacturers use computer aided designs, you'll have flexibility in choosing variations to floor plans and decor. You can choose from a variety of exterior design, depending on your taste and budget. Exterior siding comes in an array of colors, and materials including metal, vinyl, wood and hardboard. Awnings, enclosures around the crawl space, patio covers, decks and steps also are available. How Much Can I Expect To pay For A Home? Depending on the size, floor plans and features a new home can cost anywhere from $15,000 to $100,000. This doesn't include the land. What Financing Options Are Available? Your retailer usually can provide information about financing. You can also check with lenders in your area. just as there are choices when you buy a site-built home, there are a variety of financing options when you buy a manufactured home. Down payments and loans are similar - 5 to 10 percent of the manufactured home's sales price for the down payment; and loan terms from 15 to 30 years. Most lenders offer fixed and variable rate loans and most have programs that allow you to "buy the rate down." If you own or plan to purchase the land where you will place your home, traditional mortgage financing can usually be arranged. What Other Costs Can I Expect To Pay? While your mortgage payments may be your biggest expense, you'll have other regular and periodic payments. They may include utilities, property taxes, land rental 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 HUD. The energy conserving features found in manufactured homes help reduce your monthly energy costs. How Much Maintenance Will My Home Need? Your homeowner's manual outlines maintenance requirements. It's important that they're followed. Failure to do so could void the warranty, as well as lessen the value and life of your home. What Warranty Coverage Is Offered On The Home, It's Transportation, And Installation? All manufacturers offer a written warranty that should cover: Structural workmanship Factory-installed plumbing, heating and electrical systems. Factory-installed appliances, which also may be covered by separate appliance manufacturer warranties. Manufacturer warranties DO NOT cover: Improper installation and maintenance Accidents Owner negligence Unauthorized repair Normal wear and aging There are important differences among warranties. For example, manufacturer warranties usually do not cover installation (also called "set-up") and transportation of the home, but you may be able to get this coverage through the retailer or installation contractor. Although you may never need such warranty services, it's a good idea to check the coverage on any warranties offered before you buy. Where Can I Locate My Home? Many homes are placed on privately owned property. If this option appeals to you, find out about zoning laws, restrictive covenants and utility connections. Your retailer can give you more information. Another option is to place your home in a land-lease community specifically designed for manufactured homes. Here, you own the home but lease the land. Placing your home in a land lease community involves fewer sitting considerations such as utility connections. A third option is buying the home and the land together in a planned subdivision where sitting issues are handled by the developer.

Buying the Right Home Most manufactured homes are sold through retail sales centers, many of which are independently owned and operated. Others are owned and operated by a manufacturer. In some states, you may also buy from a manufactured home community, home owner, developer, or if you're purchasing a previously owned home, a real estate agent. Retailers offer a variety of products and services. Many will help you choose your home and its features and, if you want, place a custom order with the factory. Typically the retailer is also responsible for coordinating the delivery and installation of your home. Ask what warranty coverage the retailer provides on transportation and installation and get it in writing. The retailer may arrange for financing and insurance. And once you've moved in, the retailer is often the contact for warranty service. Contact the Tennessee Manufactured Housing Association for the names and addresses of manufacturers and retailers in your area.

Placement of Your Home Before you buy a home, you'll need to decide where you want to live. You have several options. You can place your home on land you own or intend to purchase, in a rental community, or in a subdivision. ZONING. In cities and suburban areas, and in some semi-rural areas, you may face zoning requirements or restrictions. Some areas may prohibit manufactured homes. Others may have requirements regarding their size and appearance. Contact your retailer and your planning and zoning office for more information. RESTRICTIVE COVENANTS. These are limitations in property deeds that control how the land can be used. Covenants may mandate that homes be a certain size or that land be used for certain purposes. The title search, conducted when you buy the land, may outline these limitations. However, sometimes, the restrictions are described in ways that are difficult to understand. You may want to seek the advice of an experienced real estate attorney to avoid problems. UTILITIES. Although a manufactured home comes with plumbing, electrical and heating systems, it must be connected to utilities. Contact your local public utility companies for connections and cost information. WATER. Not all areas have local water lines and you may have to drill a well. Check with a local well-drilling company about costs and whether success is guaranteed, as success rates are less than perfect. Also, check with local health officials about water quality. SEWAGE. Some areas rely on septic systems rather than city or county sanitary sewage systems. If you can't connect your home to a municipal or county system, you must check with local authorities about installing a septic tank. While properly installed septic systems can work quite well, in some cases environmental conditions may prevent their use. For more information contact your local health department or the office responsible for issuing building permits. The Right Rental Community Perhaps a rental community specifically planned for manufactured housing appeals to you. Placing your home in such a community involves fewer practical concerns than sitting the home on your own land since most services are included in your lease payments. If the idea of a rental community interests you, visit several. Today's manufactured home communities offer many of the same conveniences and services found in other planned residential developments. Retailers will have information about rental communities and, in some cases, operate such communities themselves. Compare services, amenities, and the cost of each, including the rent, installation fees, and other miscellaneous service charges. Ask the following questions before deciding on a community: Is a written lease required? If so, for how long? What are the charges for utility connections and other services? Can my home be installed by my retailer or other professional, or does the community require that it handle installation? What will I be charged for installation? Who is responsible for ground maintenance, snow removal, garbage collection, street maintenance and mail delivery? What are the community's rules and regulations? Can I live with them? For example, are pets allowed? Are there any special requirements or restrictions if I sell my home? How are rent increases handled? Is there a homeowner's association? Are there restrictive covenants? Buying A Home On Site Another option that's gaining popularity is a planned subdivision where the developer is responsible for installation. Be sure to ask about costs, services and covenants before you buy.

Site Preparation If you're having the home installed on your own land, you may be responsible for site preparation. But its also a good idea to have your retailer or installer inspect the site. Here's a site preparation checklist: The delivery truck must be able to reach the site. The site must be as level as possible. The area where the home will sit must be clear of trees, rocks and other debris. The soil must be graded and sloped away from the home for water runoff. Fill soil must be compacted to prevent the foundation from sinking or shifting. While you may be able to do some of the site preparation, most tasks, such as grading and compacting soil require professional expertise. Otherwise, you could do damage to your home that is not covered by the warranty.

Installation In most instances, your home will be transported from the factory to the retail sales center. Installation Manufacturers must provide detailed instructions for proper home installation. Usually the retailer will install your home or use a contractor. Typically the price of your home includes installation. You should get a written explanation of the installation services from your retailer. If installation isn't included, you may have to hire a professional. Ask your retailer for recommendations. Step 1. Transporting Your Home -- The retailer or the transporter is usually responsible for delivering the home to your site. Step 2. Building A Foundation -- Your home must have a foundation. In addition to following the manufacturer's instructions and complying with local codes, ask the institution financing your home or your rental community if they have special requirements. The Federal Housing Administration (FHA), Veterans Administration (VA), and the Rural Housing Service (RHS) also have special foundation requirements for homes they finance. Remind your retailer of the kind of financing you're using so that all applicable requirements will be met. If you place your home on your own property, you can choose from a number of foundation types: concrete block, metal or treated wood piers, a concrete slab or a full basement. A professional installer will know which local building codes apply. Ask the installer to obtain the required building permits and inspections. Step 3. Leveling Your Home -- It's critical that your home be leveled to meet the manufacturer's installation instructions. Otherwise your home's weight will be unevenly distributed. This can cause floors and walls to buckle and prevent doors and windows from opening and closing smoothly. While the manufacturer's warranty won't cover repairs resulting form improper leveling, a written warranty from the installer may. Insist on a walk-through before the installer leaves. Check for signs that your home may not be level. Because some foundation supports may settle unevenly, it's importantly to periodically check that your home stays level. The first check should be done 60 to 90 days after installation and then once every year. Step 4. Securing Your Home To The Foundation -- Your home should be anchored to the ground or concrete footers. Anchoring must comply with the manufacturer's instructions or as required by local codes. This is not a "do-it-yourself" project. Ask your retailer for more information. Step 5. Finishing Your Home -- Your home may need finishing work, such as an enclosure around the crawl space. The enclosure must provide adequate ventilation openings at all four corners of the home. If you have a multi-section home, finishing work may include molding and joining carpet on the interior, and siding and roofing work on the exterior. Step 6. Connecting Utilities -- Installation should include connections to water, electricity, gas and sewer. If connections aren't included in the installation price, you'll have to contract for them separately. your retailer can help you with the arrangements, or you can contact local authorities for more information. Additions And Alterations To Your Home Once your home has left the factory, the HUD code does not provide provisions for additions and alterations. Such modifications may jeopardize your home warranty. They may also create malfunctions or an unsafe home. An approved addition should be a free-standing structure that meets local building codes; you may need a permit. Contact your manufacturer, the department of Commerce and Insurance, the US Department of Housing and Urban Development or local building officials for more information.

Home Inspection Conduct an organized inspection before you move in. Move from the exterior to the interior, carefully checking each room. Many manufacturer's provide a checklist in the owners manual. Fill it out, date it, include additional items that need servicing and promptly return it to the manufacturer. Keep copies for yourself. A delay could jeopardize your warranty.