Clayton Blog

How To Build Equity In A Manufactured Home Part 1

In years past, manufactured homes were more aptly called mobile homes. These homes without foundations were generally considered vehicles and personal property rather than real property.


Old Mobile Home

In the 70’s, the term “mobile” home was dropped for “manufactured” home since the industry focused on crafting long term housing like a traditional house. It happened in 1976 when the HUD Code was implemented. 

Some people may still prefer a home that can be moved to upgrade or to avoid permanent structures on rented property, family land, etc. However, manufactured homes are now built so that there is the option to affix them to a permanent foundation.


The Clint Mobile Home Exterior The Clint model by Buccaneer

Modular Homes

Modular homes are built to local building codes on a foundation just like site built homes. Although the components of modular homes are built inside a building facility, they are often considered similar to traditional site built homes.


Manufactured Homes 

Manufactured homes are built to a federal code, the HUD Code, and if the option to affix the home to a permanent foundation is chosen, in most states the home is considered permanent real property with the possibility to appreciate.


The Conner Mobile Home ExteriorThe Conner model by Cavalier 


Gaining value in your manufactured home requires just a few extra steps at the time of purchase:


  • As they say in real estate, location is everything. By working with a realtor and looking for land to buy in a great location, it’s much easier to resell your home and property for a greater return. Land with your home is a key to building equity in your mobile home.


  • When you find a great property for your home, the next step is to have it “set.” Setting the home properly does not automatically mean that your home will appreciate, but it may help to retain its value longer because it has a permanent foundation on land.


  • There are a number of processes that you can pursue to have your home permanently affixed to your land. Consult with your retailer to see what options are available and what requirements must be met in your local area to have your home affixed. 


These steps will cost more upfront. However, the extra expenses will pay off down the road like any investment. Once all the requirements to permanently affix the home are completed, in most states the home is considered real property rather than personal property. This gives your property greater value and helps you build equity in your mobile home.

Another crucial part of building value in your home is through regular maintenance and improvements. 

Maintain My Home For Equity

Topics Financial