Snapshot Manufactured Homes: An Underutilized Source of Affordable Housing?

Manufactured homes are economical to build and significantly more affordable than site-built homes. On average, a manufactured home costs approximately $127,000 ($85 per square foot), while a site-built home costs over $413,000 ($168 per square foot). 

Titling laws for manufactured homes are a common barrier to ownership and access to mortgages. Nearly two-thirds of manufactured homeowners own the land beneath their homes, but titling laws vary throughout the states. Each state has a unique approach, with some requiring specific documentation and applications, and others requiring only affidavits of affixture to title as real property. Titling a manufactured home as personal property, instead of real property, can reduce homeowner advantages, such as mortgages, consumer protections, equitable taxation and resale value. 

Financing for manufactured homes is difficult for homebuyers to obtain. More than half of loan applications for manufactured homes are denied. Buyers of manufactured homes often are held to higher credit standards than traditional mortgage applicants, and denial rates for loans that are not federally insured are much higher than mortgages with it. These challenges are especially acute for homebuyers who do not own their home as real estate. This could include landowners, land renters and homes on family or tribal land. In these cases, a home-only loan (also known as chattel or personal property loans) can be used, but denial rates are especially high. Buyers who obtain a home-only loan generally pay far higher interest rates and have fewer consumer protections.  

State and local zoning requirements prohibit manufactured housing in most neighborhoods. When coupled with homeowner association policies, siting of manufactured homes is highly restricted. 

Generally, residents of manufactured housing lack the same eviction protections as those in site-built homes or apartments. Approximately one-third of manufactured homeowners do not own the land beneath their home and can be evicted from the land which can be cost-prohibitive to move and finding a new location can be difficult. Additionally, families renting a manufactured home on land they do not own are often excluded from landlord-tenant statutes, increasing the cost burden of forced relocation. 

Support construction and use of manufactured homes to improve the supply of lower-priced housing options.

• Colorado HB 1304 (2023) created a concessionary debt program that provides debt financing for modular and factory-built housing manufacturers.
• Virginia SB 1327 (2021) requires localities to include in their comprehensive plans ways to promote manufactured homes as affordable housing. The law also bolsters protections for tenants renting the lot on which their manufactured home sits.

Allow manufactured homes to be titled as real property and improve protections for owners who are unable to title their homes as real property.

• Illinois SB 1779 (2021) creates disclosure requirements for lenders offering personal property loans on manufactured homes that are not titled as real property. The statute requires a lender to inform a buyer if the loan is ineligible for refinancing and provide information regarding when a manufactured home may qualify as real property.

Increase financing options for consumers purchasing manufactured homes.

• New York SB 7541 (2023) enables the State of New York Mortgage Agency to purchase loans on manufactured homes by including personal property loans for manufactured homes in the state’s definition of mortgages.
• Florida SB 102 (2023) created the Florida Hometown Hero Program to provide financial assistance to eligible The program helps residents purchase homes by providing loans to reduce down payments and closing costs. Manufactured homes are eligible for the program.

Address zoning regulations that prevent manufactured housing from being situated within existing neighborhoods.

• Georgia SB 213 (2023) prohibits local governments from preventing the continuance of lawful nonconforming use of property when a preexisting manufactured home or mobile home is replaced with another such
• Oregon HB 4064 (2022) requires local governments to allow manufactured housing and other types of prefabricated homes anywhere zoned for single-family housing.

Improve eviction protections for people living in manufactured homes to reduce displacement and increase household stability.

• Arizona HB 2381 (2023) prohibits a landlord of manufactured housing from terminating a home lease or land lease without good cause, such as non-compliance with a lease or change in land use.
• Iowa HF 2562 (2022) requires at least 90 days’ notice for nonrenewal of a lease. If a mobile home park is sold, the purchaser must adhere to all legal obligations, including rental agreements. In addition, at least 90 days’ notice of rent increases is required.