When I was ten, around 1981,:my parents built a house. My mom found a company with a huge catalog of houses where you ordered the house and all the walls came ready and all the supplies came with it but they and their friends built it. It's survived several hurricanes and is now valued at $500,000.
It was Sear's. All the lumber down to the nails n screws were numbered. They still stand today. These modulars are mold cartons. The moisture kills you slowly
After watching this, I have come to the conclusion that it would be a lot simpler and cheaper just to live in a minivan. Car payments and insurance cost less than a mortgage/rent and utilities.
@@charlesminckler2978 same here. RV industry is a little too unregulated to be dependable. It’s the first industry I’ve ever heard of where you can expect problems when you buy it brand new.
You are a genius. I am a loan officer out here in So California who is genuinely interested in getting families in affordable homes out here in the wild west. I do know the difference in definition. I try to protect my clients. I am now a fan.
The easiest way to tell if it's a hybrid or (cross mod) look for the red colored HUD tag on each piece. It's located on the vinyl siding (riveted). A real modular home will have a sticker with the state seal (where it's being sold to) located inside the kitchen cabinets or at the breaker box or in the master bedroom closet. Never buy a mod stickered for another state. Will never pass inspection. We sell manufactured houses in Virginia, but we're close to TN and KY. So each modular has to be construction to that states requirements.
That makes sense. Don't modular homes have to be held to the same local, state and regional building codes? Which would require them to have a state seal instead of a HUD tag. Thanks for the info!!!
I was a commercial drywall contractor and built my own house and saved a TON of money. Instead of cheap and weak, mine is built out of heavy Guage steel studs that don't warp and bugs can't eat.
I picked up a manufactured home for cheap in 2009. It was a repo that was never lived in. I had it set on a foundation so according to the county, it's a house. It's a rental that has paid for itself already. It sits on it's own acre.
Purchased a manufactured home about 7 years ago and just paid cash for it. We love our home . The taxes are less and we made many upgrades. Not planning on selling and don't need to refinance as it is paid off . I probably wouldn't recommend them to everyone but it is exactly what we were looking for. Always do your homework before you purchase. Thanks for explaining some of these issues. I am sure it will definitely help people.
The build quality isn't great I been in many manufactured homes, and even the most expensive ones feel cheap, and they just lose value if you say the opposite it's the land that's gaining value not the house
Problem in some states are if wanting to purchase one that is up for sale banks won't lend money for a mortgage, because they are not built by state codes, you have to buy it cash or no sale.
@@Dolly-6782 The land rising in value is actually true of all homes. It's the land and not the house that sits upon it, site built included, that generally appreciates. Issue with manufactured homes is many people put them on rented land, something you can't do with site built homes, and without the land the home depreciates. The other issue is while the building code for some manufactured homes exceeds standard building codes that isn't normally the case which means more maintenance costs for the home owner over time. Having said all that, in this economy and insane real estate market pretty much all homes that were purchased a few years back have appreciated. In addition for many people right now both renting and buying a typical house is out of their price range so a manufactured home is all that's within their budget. So these definitely fill a need in the housing market.
I went under a customer's newly installed modular to repair a drain leak. The drains from the fixtures was connected by the delivery driver. He also laid the sewer drain . Nearly all his joints were leaking, wrong fittings used and not pitched properly.
You can not get mortgage on a manufactured home because it arrives on site with wheels. Buy a modular home is built like a stick built home. It is built in the factory then taken apart delivered to the site then reassembled.
I appreciate the re-enactment of what to expect from an agent trying to ease questions away from technical classification. Thanks Kristina, you're the RE friend everyone wishes they had in their corner
I built both for many years. Modular homes use the same materials as an on site built home does. Manufactured homes use cheap materials like 2x3 walls instead of 2x4 walls. 2x2 rafters vs 2x4 rafters. etc.
Depends on manufacturer zone mine is costal zone my cousin's next door, which is 20 years newer is built SE zone mine is more bland but in better shape
@@govols4512 Yeah, a lot of improvements to the building requirements for those things have happened over the decades. It's just that most people aren't actually aware of the changes and just run off old information instead of doing the research. Of course, you're still kinda borked on financing and zoning, because those laws haven't caught up to those improvements and there's really no reason for them to because that would upset the real estate game and lower property values which hurts tax revenue
I really appreciate having someone out there looking out for those of us who will need to be looking into affordable housing options rather than catering a bunch of videos towards investment bros. Telling us "how you can make a million dollars by investigating in a $400,000 home for poor people."
"affordable housing" doesn't exist in this country. the phrase itself is nothing but a marketing slogan to dupe and victimize the public. the corporations are ripping us off left and right. there's no scam too small or too big they won't pull. everything they touch becomes a shambles for everyone but them. they've taken over the delivery industry. its now a shambles. thy've taken over medical care. the medical system is now a shambles. they've taken over the housing industry. its now a shambles. they've taken over the legal industry. its now a shambles. they've taken over OUR govt. the govt is now a shambles. we're being sold down the river, betrayed and victimized by these profiteers who now "own" and operate all aspects of our lives. we're no longer ruled by govt but by corporations who care nothing about you or democracy.
I think that a modular home builders should purchase a plot of land and build affordable modular both modern and find the plans for a neighborhood of the and depending on the model the price be in line within peoples budgets.
My wife and I were going to purchase a modular home but we couldn’t find any affordable land in the area we wanted to build it on. So we ended up buying a house, which turned out to be the right move for us.
We have a Clayton Home, 1700 SF. It Was built in 2008 and has factory upgrades such as real wood cabinets and some drywall in the main parts of the house. We love our home and it doesn’t look like a “mobile home “ inside. We bought it with land, septic system, metal roof, the works. Financed for under 3%.
@@sandraleigh4023 We're in WV. Someone had this house installed on our Lot in 2008 and we're the 3rd owner. See if you can find one that is "Newish" on it's own land, we think it's worth it.
@@fubarnow8907 Oh. I'd really like to stay in Georgia, and I don't know if I have the stamina to search for the right property with power and sewer. I guess a real estate agent would know how to find a Clayton, but I'd love to pick a brand new one. Anyhow, thank you for the information - glad you're enjoying your home!!
@@TheJeanean Pick Anything and read reviews, You'll find negative on everything. Nothing is built to perfection. My Clayton home, that is on a lot and has everything, is a nice place for us. We got for an affordable price in a Nice neighborhood.
Here’s the problem, this is all a word game, it’s a semantic trap designed to confuse and confound the unsuspecting consumer. Bottom line, and please pay attention to the following as this should clarify things for everyone: Manufactured housing: The definition of manufactured is simply anything that is built by hand, so in the simplest terms, even traditional, on site built homes are technically “manufactured”. What it has been designed to mean for the intents and purposes of trailer home building industry is the new way of calling trailer homes to shift away from the rightfully earned perception that trailer homes, are cheap, sub par dwellings marketed to low income consumers. If it’s built on a trailer, it’s a trailer home, for you, for the banks, for the municipal authorities and the real estate marketplace, period, end of story, and nothing they can call it makes it otherwise. Manufactured = Trailer home and these are by economic convention the lowest quality built residential structures on the market. Modular. Modular by definition is anything composed of individual modules. These are alway built off site in a factory, delivered to the final build location to be placed on a permanent foundation as a single or multiple modules. Modular homes are also technically manufactured, but the principal things that differentiates them from manufactured “trailer” homes, is that these 1) are not built on trailers, 2) Are built to meet or exceed and very often way exceed IRC and any other building code. Pros & Cons. (This is by no means a comprehensive list of all, but the key and most important ones between the 2): Manufactured “trailer” homes. Pros: 1)They are traditionally for the square footage of living space and amenities provided, the most affordable option for low disposable income home buyers. 2) They still are relatively easy to transport and typically do not need a permanent foundation. 3) Easy and quick set up time, usually in a matter of a day or 2 from delivery it is move in ready. Cons: 1) The lowest quality built of all permissible dwellings. 2) Unless you own the land it sits on, and provided that your local municipal authority allows for a manufactured / trailer home to be placed upon that property on a permanent basis, these homes are a depreciating asset. 3) Initial financing or refinancing are completely different from traditional or modular homes, more restrictive and less advantageous. 4) Long term ( lifetime costs of upkeep, and Insurance) insurance is a bear in terms of each premium dollar spent does not provide for the same level of coverage as for any other type of dwelling. Upkeep and maintenance is constant as the lower quality materials typically used wear and tear at a much faster rate. 5) Limited design options. 6) Stigmatized as being tornado magnets and low class dwellings. Modular. Pros: 1) As stated earlier, normally built better than IRC. 2) Typically built, delivered and move in ready much faster that traditional, built on site homes. 3) Getting much easier to finance and refinance conventionally. 4) It is an appreciating asset, sometimes with greater and faster appreciation rates than conventionally built homes. 5) Design options are virtually limitless and far greater than those possible with manufactured/trailer homes. 6) Gaining in popularity, cache and status. Cons. 1) Complicated and costly to transport and set up. 2) Limited range of delivery as cost efficiencies decline with each mile of distance from factory to final location. 3) relatively newness in concept and an often, bewildering number of available options and manufacturers. 4) Although all home buying decisions involve risk, and due diligence in selecting the right builder, the modular industry is rife with untested or even in name only sellers. Moral of the story as with any story involving the shelling out of considerable funds is BUYER BE WARE.
@@mur6822 It is what it is regardless what HUD wants. There's no law that bans calling trailer homes, trailer homes. If it's built on a chassis is towable and rolls, it's a trailer.
@@mur6822 if you don't care for that term , than call it what it really is ... A POS mobile home . That's what we've been calling them in Elkhart County since the 1950s , and we're the mobile home capital of the world .
The best way to control the money grabbers is to boycott them. Kristina and hopefully many others are pulling the curtain back to expose the deceptions :)
We bought a manufactured home 20 years ago and put it on a foundation. Several years later we needed to refinance it but when they did the appraisal it was way off. We had a mortgage of $200,000 including the over 3 acres of land. The appraisal came back as $100,000. We ended up filing for bankruptcy less than a year later.
@@TheJeanean No not true. Only manufactured homes that have a title because they are mobile depreciate. Put it on a slab or build a stick frame garage and it's considered a permanent dwelling. One of mine valued at $34k in 2005 is now valued at $116.500
You are so right! I nearly bought a home from Oakcreek homes in Midland Tx that was in the manufactured homes catalog but the swore they could build it modular and the website point out homes that they will convert to modular. I didn’t feel right about it since my lender was unsure about specs as well. As I did more homework (and listened to you, Kristina) I realized it would be a bad investment.
A dealer in Delaware that starts with Clay and ends with ton is doing land home packages and charging up to the low $300's for manufactured homes on a lot, usually a half acre... The people buying these homes are going to regret it in the future.
Wait, please explain in detail why this is bad. Houses in the NorthEast are OUTRAGEOUSLY priced. I've just seen the market skyrocket up and up... My thoughts lately have been that maybe finding a land / prefab or modular home package would be more affordable, customizable, etc. And Delaware is close enough but a bit cheaper. So, as a potential buyer of this type of option, please explain (if you see this) why it's not the right choice?
Basically. The sad part is most of the issues are because the zoning laws and financial institutions aren't up to date on the current manufacturing requirements, which are far more stricter than they used to be. They basically act like it's still the 90s
Biggest difference with a modular home is it does NOT use the frame it is transported on as part of its permanent support structure where a manufactured home is built on a metal chassis. Another big difference is usually the roof on a modular home the rafters are hinged and the roof is fastened together in the center giving a normal steeper pitched roof while the manufactured home is built with the rafters and roof pitch fixed at the factory with a much less angle of pitch. Also modular homes do have access to the attic area where aa manufactured home there is no attic access. Also many modular homes have actual dormers with windows in the attic area. You will not see actual real functional dormers on a manufactured home.
I got that feeling as well. I picked up on some inaccurate info within the first 3 minutes of the video. "Modular homes come in cubes and take several days to setup". Lol....Ok lady.
I am a retired mortgage underwriter and the easiest way to tell the difference between a modular and manufactured is how it is delivered. Manufactured home comes with an attached tongue and wheels to the undercarriage, which is pulled into place on property. Don't be fooled by a double or triple wide as they come in two or more sections. This is not the definition of a true modular home. And they are now being made 2 story. Which is scary beyond anything I have heard of with MTG homes. These homes are not built like regualar homes. They use cheap products and get away with it. Modular homes are trucked in strapped down to a flatbed trailer. They have to use a crane to put them on the fondation. And the roof has to be put on once the home reachs it destination. This is a true modular home. Ask if the home has a tongue, undercarriage and wheels attached to the home. That will tell you all you need to know. And ALWAYS get an inspection & home warrenty before you sign off on it. To make sure all has been done correctly and you are covered for your first year for appliances, A/C furance. Blessings to all!
All depends. Three years ago my realtor found me an older manufactured home set on a solid foundation in a small town for $70,000. The lot is spacious and came with a two stall two story garage. The lot is on a paved street, all utilities in. So far everything is great. My total expenses for utilities, insurance, and taxes are less than $400 a month which is lower than most lot rents in mobile home parks. I hear of reports of lot rents in Florida having gone up to $1,000. If your retired l would recommend looking for a house in small towns, there are a lot of bargains out there.
I am here in Florida. We just changed our homeowners insurance policy as the old one was too expensive. We are in a regular built on site home. Before we could change our policy they required 2 things: a Wind mitigation report, and a 4 point inspection. The wind mitigation requires being able to get into the attic and take photos of the rafters where they attach to the walls. In many mobile homes I know this is NOT possible yet it is required... FYI.
I was a mortgage broker in Massachusetts. We have a list of modular companies at the time I was active. There was 4 out of New Hampshire. Mobile homes nope. Call them anything you want we never finance them
I spent 2 years and $100K upgrading a manufactured home in Grass Valley, CA into a really cool little place, with new large redwood deck, new windows, plank floors etc. In the end, we got $430K for a manufactured home on 3 beautiful acres, cedar shingles, cedar stained trim all around, completely new siding. To be honest, I sold as I was worried about the price appreciating any more due to lending issues and perception from buyers. The new buyers I think got an FHA loan for 97% of the purchase price, so FHA does do loans on manu homes. Its all so confusing and best to own a newer slab on grade home as we do now.
This garbage seems to have been going on a long time! I had no idea how much it impacted but thank goodness I walked off the lot! (Clayton, I left bc I was seeing too many lazy building mistakes. If they couldnt make the seams on counters and such line up right I didnt want to find out what *else* wasn't that I couldn't see. Trust yourself, shop smart!)
Are you referring to Claytin Homes in SO. California??? They are on my list to contact for tour. Please let me know, as this would save me travel costs from Washington state. Thank you in advance. BTW, if you are in SO. Cal and can recommend a manufacturer, I would appreciate that as well!
In the 1950s, my dad bought a house from Sears/Robuck. He said all the wood and and everything needed to build a house was delivered to his land by several trucks. Then he hired people to build it. The cost: $14K. plus whatever he paid to the construction crew who worked for about 3 weeks. He sold the house for $630k.
This is a really great explanation of the difference between modular & mobile homes. We purchased a true modular home which was factory built & site assembled. It's approx 1250 sq. ft. It was built in 2000. We are the 3rd owners. It's a metal frame with the same structure of each module with of course drywall. This home is structurally very solid. The walls are very strong & was rated to withstand 150 mph winds. We paid 123k. Purchased 11 years ago, it's the most modern looking house in a neighborhood of brick & wood frame homes. Ours is a stucco which actually has vinyl sheething. Our current appraisal is 249k
Over the past couple of weeks, I visited a Champion home retailer twice... I initially walked in looking for a modular home, for the financing, appraisal, and insurance reasons highlighted in this video. The salesperson said that what they sold were manufactured homes that could be built to "modular spec" for an additional charge. Is it possible this "modular spec" jargon is just a rebranding of "modular hybrid"?
I love how you dig for the truth. The devil's in the details when it comes down to real estate. You really do right by your viewership. Of course it's just a fragrant wisp of wishful thinking, but I'd love to see you have a confab at the same table with other special gals I follow; Alison Arngrim, Eve Plumb, Jeanine Pirro, Elizabeth Johnston, Sarah Douglas, etc. (A better view than 'the view'.) Sigh... Thanks for being beautiful Kristina!
I used to do closings for a manufactured home dealership in Texas. There is a difference when it comes to paperwork. For one, TDLR are the ones inspecting the homes and making sure they are built and set to code instead of TDHCA, who only inspect manufactured homes. Also manufactured homes come with HUD tags where as mods don’t. Not saying it doesn’t still look like a manufactured home, but there are differences. Our financing and inspections changed based on what people were buying. Now with that being said, would I have bought a mod instead, hoping it appraised like a regular house later on? No. We mainly sold them to people who were interested in a manufactured home but the city or HOA would only allow mods. Some people bought them because they “didn’t want a mobile home”, and I never had the freedom to tell them it really didn’t matter. It mattered on paper, but not really in the real world. Hope that helps people who have dealerships tell them it is different. It is, but not enough to make it a better option.
Once again Thank You SOOO Much for talking to me and plus this video! Ms. Kristina they're working better for me since I spoke to you! Thank You So Much!
I recently commissioned a house that was built mostly at a factory and transported to my property (deftly avoiding the discrete categories of "modular" vs "manufactured"). It was delivered in two halves. I was told it was modular instead of manufactured because they were taking it off the wheels and putting it on a foundation rather than leaving it on the wheels and strapping it down. This was a requirement for the area where the property is located. Either way, the financing was normal and the house was built to above code for stick-built homes
My lady friends modular has a Hydro bill half of what my condo has in the same area! and she has twice the space. properly built mods have come of age.
As a contractor who has experience with 'modular and manufactured ' homes, you will be far better off building your own home. Your dollar will go much farther building your own. Your quality will be far superior and your headaches fewer. Run, don't walk from these homes. Buyer beware!
I live in an area where I wouldn't trust any stick built home builder. I have talked to firemen who say they use cheap brackets in the roof that will collapse very quickly in a fire. Plus, they build cheap houses on slabs and charge a fortune for them.
I agree. Stick build never gets done in time, never comes in on budget and is exposed to all the weather. I know ppl with new homes that are loaded with mold. Manufactured homes are built inside therefore mold is not an issue.
I live in Seattle and have seen so so so many construction sites with soaking exposed wood etc all winter every winter. I’ve always wondered how it dries out adequately.
So many people are confused with the terms, "manufactured" (old school title: Mobile Home) except now the industry calls them "manufactured" homes to try and make them seem more upscale. Grew up in different Mobile Homes most of my early life. Nothing wrong with calling them what they are, a house on wheels. lol
The term manufactured home actually has a seperate definition from mobile home. Mobile homes refer to a factory built home built prior to 1976 when the HUD building code was introduced to the industry. In other words actual mobile homes were not built to any building code. A manufactured home is a factory built home that is built after 1976 and therefore has to be built to HUD building code upon a permanent steel chassis. Once at the site a manufactured home may be placed on a permanent foundation with all wheels and axis removed. Modular homes must be built to standard local building codes and will not be built upon a permanent steel chassis.
Thank you for a masterpiece video. I am appreciative for your brilliance in the real estate/home market! You have given us extremely important information!
Huh, I wonder if I have one of those hybrid manufacturer homes. We bought it because it was a manufacture home that qualified for conventional loan because of our foundation.
This Housing market collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
Sonya Lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Don’t listen to these lies. Invest in gold and silver. It’s the only thing that will be worth anything. Our government is printing up money with no gold to back it up. Invest in gold.
I am commenting from right here in Baton Rouge, LA. I work for a PREFAB STEEL construction company here, locally. When we order a STEEL PREFAB building for any use at all, the first thing I must provide is the building's location zip code. Every single steel manufacturer in the U.S. must know the zip code first because ALL details regarding BUILDING CODES for that building's location is in the computer hardware, thus the manufacturer can ONLY provide drawings, specs, and a building product meeting ALL code requirements FIRST and foremost. If any building of any kind is not 100% up to code then no one is is getting a permit to "occupy" the building. The permit to build can be provided but if not up to codes it WILL NOT PASS inspection no matter what kind of building it is. BUILDING CODES NOTHING MORE IMPORTANT.
FYI, I have built a few websites, and there is code that most coders put in their websites that updates the copyright for the website to the current year. Websites are often constantly being updated, so it makes sense to have the website copyright be the same as the current year. That doesn't mean the company was founded that year.
Great comment. and for her to mention to stay away from New Company's implies she doesn't believe in people starting new businesses. so therefore how does someone start if she is advising stay away from new companies... Yes, do your due diligence but every company is a new company at some point for a new customer. now sure you may not want to be the first customer but someone has to be for ANY business to become reputable... its about experience, structure, professionalism and delivering your product or service as advertised... Everyone deserves a shot even new customers as well as new businesses.
If you are in doubt on the type of structure, Mobile Homes (Trailers) requires an MCO, Manufacturers Certificate of Origin. You will usually find a placard in the building. Look near power panel, master closet, utility room etc. It is required by law. Now once you find this, you will know it's NOT a modular home of any kind no matter what they tell you. If you are still in doubt, look underneath of the home. If it has steel beams underneath as part of its structure it is a trailer. Modular homes can arrive on a trailer but the trailer leaves with the truck that brought the components. Trailers are installed and the axles removed. Don't ever buy a trailer. EVER
This was a great lesson. Well done! However, a copyright on a website means the written material on the site is protected. Usually, companies will say copyright 2000-2003, which might give you the idea that they've been in business 3 years, but unless they tell you, the best thing to do is call them up and ask them. Another thing to think about for people purchasing a used modular/manufactured home is a lot of companies are selling them but not the land underneath. In the case of a modular home, you can't move it, and most modular are placed for life, so you are stuck paying space rentals for life and have no choice if the owners want to raise it whenever they want. You are a captive audience. Know that going in the door.
Be very careful,make sure the community has a cap on monthly charges ,if they don’t,get out of there as fast as you can,don’t go into a community where you rent or lease the land,run away,I know,I lived in one ,wound up selling for a loss just to get out
There are real estate "professionals" on RUclips that often interchange the words "modular" and "manufactured" in their titles and descriptions. One question resolves this: Is there a HUD stamp? New MH Advantage homes are manufactured with HUD stamps, but can use site built homes for comparable home prices and can also get the same loans as stick built homes. Aside from the efficiency and economic advantages of manufactured homes, another advantage is that federal law (HUD) trumps any local or state building requirements. This pertains to the home itself, not setbacks, sewage, water, etc. MH Homes look more like regular homes than "mobile" homes and some are built with Energy Star certification.
I own a modular home it is a crest home i bought it in 1997. To go on my land it came in two pieces and the roof was down it was put on a basement in Vermont. I had to pay extra points for a building loan and my first appraiser did it against doublewides even though it was a modular after that I refinanced it was a regular loan with with loan interest rates. I also has regular homeowners insurance. My friend has a doublewide and she has had horrible time getting insurance since Vermont added flood insurance to the homeowner insurance because we had floods and so many trailer parks flooded.
I have audited both modular home builder and manufactured home. Modular home is built so strong that it can be lifted off from the foundation in one piece by a couple of front loaders. Manufactured home is a flimsy version of a standard shipping container.
Just because a company has a new website or is new, shouldn't be a red flag. With mergers and acquisitions heating up and as modular is experiencing explosive growth in the construction industry, you're going to see new names with apparent "young" companies. The real issue is what building standards and code compliance that factory adheres to. If they can't or won't tell you, RUN.
I am in manufactured homes often, due to poor engineering the products do not hold up due to mistakes made not by the product but by install issues of the product. The quality of the build of these single and double wides with price paid for them is shameful. These homes are not built to last. The designs look like a 5th grader designed them ignoring basic rules of building design. 😢
I've been watching your channel recently because I need rural property for my dogs. I have 3 currently and city ordinances allow 2. I found land, and would love to do a shed to house setup. And then build a house in about 3 years, or add a manufactured home. Could you please address the shed to house process and if it's financially feasible? 🙏 Thank you.
As an appraiser, generally I can tell by looking at the exterior as the shape of a manufactured (MFG) home is best described as a box. Some people have gone to great lengths to hide that a home is a MFG by removing the HUD tags on the outside, and removing the data plate inside. Simple way to tell is when I look in the crawl space, if I see a steel holding up the floor its a MFG EVERY. TIME! Also, even if you have a MFG that you've done a stick addition too, I still have to use the MFG appraisal form and use other MFG sales for comps.
My brother put down a sizable down payment for a modular to replace a house that was damaged by sandy in Jersey . The government granted half of the cost and required this specific manufacturer to build it . He also had to pay upfront with a local contactor to tear down his existing house which he did . As you can see it's a bit of a process and things got held up for over a year . When he was finally ready to go the modular company went bankrupt . My brother did not get his money back and the house he lived in was gone . Another insult the government wanted there half they invested back from him but that never occured . All this helped to end his life prematurely . With anything requiring a sizable lead time and down payment there is such a big risk of possibly loosing your investment and like my brother crippling his ability to regroup from this big loss . Not sure if anything he could have done except maybe speeding up the process on his side .
i'm a general building contractor, electrical contractor, plumbing & mechanical, HVACR contractor, so i love looking at all the new building technologies so i can have different opyions out there to oofer my cliets etc
Thank you very much for the heads up! Most people don't do the research when it comes to modular are manufactured homes.Nice to find someone not afraid to tell the plain truth.
I'm a Real Estate Broker and own a Manufacturing Home Dealership who also does Modular Homes and can say 100% that this video isn't accurate in that we can build any Manufactured Home as a Full Modular and it'll appraise and sell as a Stick Built Home with the same financing.
Such great information. Company's like Deer Valley, Franklin Homes, and others in that line are all hybrid types of Modular? Then there is on frame, off frame modular type of homes too. Also, there is what's called a cross mod. Where the base of your home is manufactured, then a built attached garage, carport, a built front porch, using some type of stone for the under pinning is what makes a cross mod. Also if you put some sort of addition to the home as well. As always thanks for the great information 👍
In Florida, manufactured homes can’t get wind-storm coverage (hurricane). I don’t know if even modular homes could get insured, certainly not in Miami-Dade, where concrete block is the standard. Ian is causing rates to skyrocket and many people are getting dropped, having to go to Citizens. Oh, and true hurricane straps wrap around the TOP of a joist and are fastened to the house walls (again anchored in concrete is best) not those little bow-tie brackets shown in the vid.
We have a modular home and have lived in it for more than 20 years. It is actually better built than a traditional stick built home-better insulated, and stronger due to it needing to be shipped on the back of a semi. It would have cost a third to half more to have a stick built home put on our lot.
Deer Valley claims they can make their homes into a modular version. They charge $20-50K depending on the size. Would this be a true modular? Also, the cost ends up being around $175 p/sqft. How is that cheaper than sight built?
Are prefab homes common in the USA? Where I live it's very common for homes to pop up in a day (when the foundation is complete). Modular homes are getting more popular but prefab is still more common.
I bought a manufactured home in 2019 before covid on 2.5 acres of land. Got everything included. It looks like a house on the inside. Its 1900 sq foot. Paid 230k out the door for the manufactured, 400 sqfoot carport. 2 shipping containers and a 2 acre fence. Its on a permanent foundation and is considered a hpuse, not manufactured. 5 years later its worth 450k. The day i got insurance i had to get 320k in insurance.
Hi Kristin. Great Info! I have been a mobile home installer for several years and have found that there is a lot of little pieces if info, and certain procedures that help mobile home owners refinance. Sometimes, just tie-downs underneath, other times a retro fit concrete skirting. Also, some insurance companies and banks are easier to work with than others. 👍
Nice video and well done! I love the cut scenes. I can picture the sales people saying those exact things. Nothing to see here, look over there. I do have to disagree on what is said about when the company started though. A copyright notification on a web site, when properly done, indicates when the copyrighted materials on the web site was put together and published. Although mist companies will launch a web site with the beginning of the company it is not necessarily equivalent, especially if it was a complete redesign of the site. Better is to check the state's business registry. That will tell you how long that specific entity was around.
At one time, when we were putting together a home on land package, we looked at stick built, modular and manufactured homes. Stick built were the most expensive at first glance. But as we Dug deeper, you have to also take a look at what you get and don’t get. At the end of the day, you get what you pay for. The problem we found with modular homes was they were very close to the price of a stick built, and while they was they were much more expensive to build than a manufactured home, were very restrictive in configurations available and if you wanted more of the features you got in a stick built, the prices escalated very rapidly. So for affordability reasons, we wound up going with a manufactured home and we converted it into a land package when we were done, so financing and resell would be much more attractive. In spite of the so called improvements in manufactured homes over the years, they are still a house trailer at the end of the day. A stick built house is still a house and the modular home remains in that fuzzy almost but not quit a regular house. For all intents and purposes, your going to spend about the same amount of money on the land and it’s preparation for a house whether it’s a manufactured, modular or stick built. The advantage for a manufactured house is you can save quite a bit of money on foundation costs because you can set it up on blocks.
I bought my manufactured home a few years ago. Paid 87k for it but had all of my concrete and dirt work included as well as taxes and fees added to the mortgage. Ended up being 111k after all said and done. They recently appraised it as a regular built home because it is on a concrete foundation. It now appraises at just over $151k along with thr acre it sits on. The home I purchased is still available to purchase new but it is now $140k for it alone and I paid $86k just a couple years ago.
thanks for the tips, do you know if Clayton Homes is a true modular company, we looked at some in Smoky Mountains recently and posted them, because we were considering them
Project Manager is responsible for the planning, procurement, execution and completion of a project. The project manager is in charge of the entire project and handles everything involved, such as the project scope, managing the project team, as well as the resources assigned to the project Become one! Thank you so much!
The ultimate question in my opinion is - which code does it meet? HUD or IRC (local stick built building code) Another way of asking this - is it “real property” or “personal property”? “Real” property means it meets IRC code and its on a foundation. “Personal” property means it meets HUD code and its “mobile”.
Unless I can pay cash for a home, I refuse to buy one in this economy with those interest rates. No to mention the ridiculously over inflated prices of all the homes in the market.
I bought a 1978 home in a nice neighborhood. We had a deep freeze and a pipe burst in the upstairs bathroom. We noticed 2 things. There was no exterior sheathing, just some type of fabric. We also found a strap. We had no idea that our home was a modular! I certainly hope the standards have improved since then. There was very little insulation in the walls, which we found shocking. (We ended up pulling the siding, installed 1" rigid insulation and resided...worked wonders in terms of comfort and utilities).
Even though new construction is crashing down in Texas with unsold inventory. I shopped true frame off modular home builders and they have a six month wait to get one. Not really a time saver. Who knows what the interest rates will be in 6 months.
Housing markets in UsA are going through some severe changes. For example, so called luxury single family homes or luxury Apts buildings are owned by REITS; they only care about bringing max returns to their shareholders.
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When I was ten, around 1981,:my parents built a house. My mom found a company with a huge catalog of houses where you ordered the house and all the walls came ready and all the supplies came with it but they and their friends built it. It's survived several hurricanes and is now valued at $500,000.
It was Sear's. All the lumber down to the nails n screws were numbered. They still stand today. These modulars are mold cartons. The moisture kills you slowly
Sounds like Sears.
Sear's stopped making homes in the early 1940's.
@@Ruckus333Wausau home? They make really nice homes.
My brother built for a company called Northwest Homes, I think. This is what they would do. You could opt to do as yourself or have a contractor
After watching this, I have come to the conclusion that it would be a lot simpler and cheaper just to live in a minivan. Car payments and insurance cost less than a mortgage/rent and utilities.
I looked into living in an RV. Unless you like moving every day, it’s not cheap. Water and sewer are complicated unless you rent in a park.
Down by the river
@@charlesminckler2978 same here. RV industry is a little too unregulated to be dependable. It’s the first industry I’ve ever heard of where you can expect problems when you buy it brand new.
Down by the river
@@abull8060 beat me to it!
You are a genius. I am a loan officer out here in So California who is genuinely interested in getting families in affordable homes out here in the wild west. I do know the difference in definition. I try to protect my clients. I am now a fan.
The easiest way to tell if it's a hybrid or (cross mod) look for the red colored HUD tag on each piece. It's located on the vinyl siding (riveted). A real modular home will have a sticker with the state seal (where it's being sold to) located inside the kitchen cabinets or at the breaker box or in the master bedroom closet. Never buy a mod stickered for another state. Will never pass inspection. We sell manufactured houses in Virginia, but we're close to TN and KY. So each modular has to be construction to that states requirements.
Wow, top quality information man.
Super helpful info thank you
That makes sense. Don't modular homes have to be held to the same local, state and regional building codes? Which would require them to have a state seal instead of a HUD tag. Thanks for the info!!!
Where in Virginia are you located?
@@romeothehavanese near Bristol
I was a commercial drywall contractor and built my own house and saved a TON of money. Instead of cheap and weak, mine is built out of heavy Guage steel studs that don't warp and bugs can't eat.
Can you get out of it if it decides to bring down its shutters and trap you inside?
I was taper for 24 years at local 507. Painter, taper, and allied trades, San Jose CA. Howdy my union brother 😊😊
@catherinegilles6408 The wood studs have been replaced by steel studs. That how skyscrapers are built so they don't burn.
Steel studs are great to work with. Noisy to cut but typically cheaper (at least they were last time I looked) than wood.
A commercial drywaller BUILDS SKYSCRAPERS!
I picked up a manufactured home for cheap in 2009.
It was a repo that was never lived in. I had it set on a foundation so according to the county, it's a house.
It's a rental that has paid for itself already. It sits on it's own acre.
Purchased a manufactured home about 7 years ago and just paid cash for it. We love our home . The taxes are less and we made many upgrades. Not planning on selling and don't need to refinance as it is paid off . I probably wouldn't recommend them to everyone but it is exactly what we were looking for. Always do your homework before you purchase. Thanks for explaining some of these issues. I am sure it will definitely help people.
@Chad Crigger -- Awesome!
The build quality isn't great I been in many manufactured homes, and even the most expensive ones feel cheap, and they just lose value if you say the opposite it's the land that's gaining value not the house
Problem in some states are if wanting to purchase one that is up for sale banks won't lend money for a mortgage, because they are not built by state codes, you have to buy it cash or no sale.
@@Dolly-6782 The land rising in value is actually true of all homes. It's the land and not the house that sits upon it, site built included, that generally appreciates. Issue with manufactured homes is many people put them on rented land, something you can't do with site built homes, and without the land the home depreciates. The other issue is while the building code for some manufactured homes exceeds standard building codes that isn't normally the case which means more maintenance costs for the home owner over time.
Having said all that, in this economy and insane real estate market pretty much all homes that were purchased a few years back have appreciated. In addition for many people right now both renting and buying a typical house is out of their price range so a manufactured home is all that's within their budget. So these definitely fill a need in the housing market.
Property tax is less because they are worthless .
I went under a customer's newly installed modular to repair a drain leak. The drains from the fixtures was connected by the delivery driver. He also laid the sewer drain
. Nearly all his joints were leaking, wrong fittings used and not pitched properly.
The mortgage industry needs to catch up to all these new types of housing. Bottom line many Americans cannot afford a site built home.
So true. It's ridiculous.
Biden will fix it 😂
You can not get mortgage on a manufactured home because it arrives on site with wheels. Buy a modular home is built like a stick built home. It is built in the factory then taken apart delivered to the site then reassembled.
@@alphawolfadventures1470 Trump will value your trailer at whatever you want
@@JanetYoung-k5k cheaper materials
I appreciate the re-enactment of what to expect from an agent trying to ease questions away from technical classification. Thanks Kristina, you're the RE friend everyone wishes they had in their corner
I built both for many years. Modular homes use the same materials as an on site built home does. Manufactured homes use cheap materials like 2x3 walls instead of 2x4 walls. 2x2 rafters vs 2x4 rafters. etc.
Not necessarily true. Some manufactured home builders use 2x4 interior and exterior and also offer 2x6 exterior walls as an option.
Do they use 24 inch on center 2x4 walls
@@Nancy-y8q1n 2x4 walls are usually 24" oc. However, there's an option for 16 oc and 19 1/4 oc.
Depends on manufacturer zone mine is costal zone my cousin's next door, which is 20 years newer is built SE zone mine is more bland but in better shape
@@govols4512 Yeah, a lot of improvements to the building requirements for those things have happened over the decades. It's just that most people aren't actually aware of the changes and just run off old information instead of doing the research.
Of course, you're still kinda borked on financing and zoning, because those laws haven't caught up to those improvements and there's really no reason for them to because that would upset the real estate game and lower property values which hurts tax revenue
I really appreciate having someone out there looking out for those of us who will need to be looking into affordable housing options rather than catering a bunch of videos towards investment bros. Telling us "how you can make a million dollars by investigating in a $400,000 home for poor people."
That's great, just be sure you don't step in the BS!
"affordable housing" doesn't exist in this country. the phrase itself is nothing but a marketing slogan to dupe and victimize the public.
the corporations are ripping us off left and right. there's no scam too small or too big they won't pull. everything they touch becomes a shambles for everyone but them. they've taken over the delivery industry. its now a shambles. thy've taken over medical care. the medical system is now a shambles. they've taken over the housing industry. its now a shambles. they've taken over the legal industry. its now a shambles. they've taken over OUR govt. the govt is now a shambles.
we're being sold down the river, betrayed and victimized by these profiteers who now "own" and operate all aspects of our lives. we're no longer ruled by govt but by corporations who care nothing about you or democracy.
I think that a modular home builders should purchase a plot of land and build affordable modular both modern and find the plans for a neighborhood of the and depending on the model the price be in line within peoples budgets.
My wife and I were going to purchase a modular home but we couldn’t find any affordable land in the area we wanted to build it on. So we ended up buying a house, which turned out to be the right move for us.
We have a Clayton Home, 1700 SF. It Was built in 2008 and has factory upgrades such as real wood cabinets and some drywall in the main parts of the house. We love our home and it doesn’t look like a “mobile home “ inside. We bought it with land, septic system, metal roof, the works. Financed for under 3%.
Are you in Georgia? I've looked at them online but can't find where they install them - did you have your own piece of property?
@@sandraleigh4023 We're in WV. Someone had this house installed on our Lot in 2008 and we're the 3rd owner. See if you can find one that is "Newish" on it's own land, we think it's worth it.
@@fubarnow8907 Oh. I'd really like to stay in Georgia, and I don't know if I have the stamina to search for the right property with power and sewer. I guess a real estate agent would know how to find a Clayton, but I'd love to pick a brand new one. Anyhow, thank you for the information - glad you're enjoying your home!!
I was browsing both Clayton and Champion homes websites. I heard negative things about one of them but couldn’t remember which.
@@TheJeanean Pick Anything and read reviews, You'll find negative on everything.
Nothing is built to perfection. My Clayton home, that is on a lot and has everything, is a nice place for us. We got for an affordable price in a Nice neighborhood.
Here’s the problem, this is all a word game, it’s a semantic trap designed to confuse and confound the unsuspecting consumer. Bottom line, and please pay attention to the following as this should clarify things for everyone:
Manufactured housing: The definition of manufactured is simply anything that is built by hand, so in the simplest terms, even traditional, on site built homes are technically “manufactured”. What it has been designed to mean for the intents and purposes of trailer home building industry is the new way of calling trailer homes to shift away from the rightfully earned perception that trailer homes, are cheap, sub par dwellings marketed to low income consumers. If it’s built on a trailer, it’s a trailer home, for you, for the banks, for the municipal authorities and the real estate marketplace, period, end of story, and nothing they can call it makes it otherwise.
Manufactured = Trailer home and these are by economic convention the lowest quality built residential structures on the market.
Modular.
Modular by definition is anything composed of individual modules. These are alway built off site in a factory, delivered to the final build location to be placed on a permanent foundation as a single or multiple modules.
Modular homes are also technically manufactured, but the principal things that differentiates them from manufactured “trailer” homes, is that these 1) are not built on trailers, 2) Are built to meet or exceed and very often way exceed IRC and any other building code.
Pros & Cons. (This is by no means a comprehensive list of all, but the key and most important ones between the 2):
Manufactured “trailer” homes.
Pros:
1)They are traditionally for the square footage of living space and amenities provided, the most affordable option for low disposable income home buyers.
2) They still are relatively easy to transport and typically do not need a permanent foundation.
3) Easy and quick set up time, usually in a matter of a day or 2 from delivery it is move in ready.
Cons:
1) The lowest quality built of all permissible dwellings.
2) Unless you own the land it sits on, and provided that your local municipal authority allows for a manufactured / trailer home to be placed upon that property on a permanent basis, these homes are a depreciating asset.
3) Initial financing or refinancing are completely different from traditional or modular homes, more restrictive and less advantageous.
4) Long term ( lifetime costs of upkeep, and Insurance) insurance is a bear in terms of each premium dollar spent does not provide for the same level of coverage as for any other type of dwelling. Upkeep and maintenance is constant as the lower quality materials typically used wear and tear at a much faster rate.
5) Limited design options.
6) Stigmatized as being tornado magnets and low class dwellings.
Modular.
Pros:
1) As stated earlier, normally built better than IRC.
2) Typically built, delivered and move in ready much faster that traditional, built on site homes.
3) Getting much easier to finance and refinance conventionally.
4) It is an appreciating asset, sometimes with greater and faster appreciation rates than conventionally built homes.
5) Design options are virtually limitless and far greater than those possible with manufactured/trailer homes.
6) Gaining in popularity, cache and status.
Cons.
1) Complicated and costly to transport and set up.
2) Limited range of delivery as cost efficiencies decline with each mile of distance from factory to final location.
3) relatively newness in concept and an often, bewildering number of available options and manufacturers.
4) Although all home buying decisions involve risk, and due diligence in selecting the right builder, the modular industry is rife with untested or even in name only sellers.
Moral of the story as with any story involving the shelling out of considerable funds is BUYER BE WARE.
STOP using trailer! HUD "outlawed" that term 40 years ago.
@@mur6822 It is what it is regardless what HUD wants. There's no law that bans calling trailer homes, trailer homes. If it's built on a chassis is towable and rolls, it's a trailer.
@@makidominguez5856 Oh pweeeze,, can't we just call em,, tiny, teeeny-weeny homes - now? ....
@@mur6822 if you don't care for that term , than call it what it really is ... A POS mobile home . That's what we've been calling them in Elkhart County since the 1950s , and we're the mobile home capital of the world .
@mur6822 You sound like the type of person that uses the terms CIS gender and non binary.
All these corporate crooks need to be reigned in HARD
The best way to control the money grabbers is to boycott them. Kristina and hopefully many others are pulling the curtain back to expose the deceptions :)
@@JSZstudios Worse than a car dealer! Sorry not sorry.
We bought a manufactured home 20 years ago and put it on a foundation. Several years later we needed to refinance it but when they did the appraisal it was way off. We had a mortgage of $200,000 including the over 3 acres of land. The appraisal came back as $100,000. We ended up filing for bankruptcy less than a year later.
I am so sorry to hear this.
Sounds like it was a part of the housing collapse and irrelevant of the dwelling itself.
It’s my understanding that mobile homes value works like cars. Not like housing. It only depreciates. It’s the land we’re the value lies.
@@TheJeanean No not true. Only manufactured homes that have a title because they are mobile depreciate. Put it on a slab or build a stick frame garage and it's considered a permanent dwelling. One of mine valued at $34k in 2005 is now valued at $116.500
@@SuperBigblue19 will your insurance company pay you $116,500 for your home if it gets totally destroyed? They won't in Florida.
You are so right! I nearly bought a home from Oakcreek homes in Midland Tx that was in the manufactured homes catalog but the swore they could build it modular and the website point out homes that they will convert to modular. I didn’t feel right about it since my lender was unsure about specs as well. As I did more homework (and listened to you, Kristina) I realized it would be a bad investment.
A dealer in Delaware that starts with Clay and ends with ton is doing land home packages and charging up to the low $300's for manufactured homes on a lot, usually a half acre... The people buying these homes are going to regret it in the future.
At least they'll own the land the home is on, right?
Wait, please explain in detail why this is bad.
Houses in the NorthEast are OUTRAGEOUSLY priced. I've just seen the market skyrocket up and up... My thoughts lately have been that maybe finding a land / prefab or modular home package would be more affordable, customizable, etc.
And Delaware is close enough but a bit cheaper.
So, as a potential buyer of this type of option, please explain (if you see this) why it's not the right choice?
@@ematuskey If they loose the house they loose the land.
Clayton is owned by Warren Buffett.
He overcharges for everything.
Feel like I should buy a foreclosure, gut it, and redo it cause this is so complicated.
Basically. The sad part is most of the issues are because the zoning laws and financial institutions aren't up to date on the current manufacturing requirements, which are far more stricter than they used to be. They basically act like it's still the 90s
Biggest difference with a modular home is it does NOT use the frame it is transported on as part of its permanent support structure where a manufactured home is built on a metal chassis.
Another big difference is usually the roof on a modular home the rafters are hinged and the roof is fastened together in the center giving a normal steeper pitched roof while the manufactured home is built with the rafters and roof pitch fixed at the factory with a much less angle of pitch.
Also modular homes do have access to the attic area where aa manufactured home there is no attic access.
Also many modular homes have actual dormers with windows in the attic area.
You will not see actual real functional dormers on a manufactured home.
She's got the "shady used car salesman" acting down 🤣
🤣👍🏼
😂 I know right?!
I got that feeling as well. I picked up on some inaccurate info within the first 3 minutes of the video. "Modular homes come in cubes and take several days to setup". Lol....Ok lady.
I think she's thoughtful and informative 👍❤️😀 she takes a lot of time to make videos, so you're free to Research everything 👍
Yessss..😂😂 Love it!!😂❤
I am a retired mortgage underwriter and the easiest way to tell the difference between a modular and manufactured is how it is delivered.
Manufactured home comes with an attached tongue and wheels to the undercarriage, which is pulled into place on property. Don't be fooled by a double or triple wide as they come in two or more sections. This is not the definition of a true modular home. And they are now being made 2 story. Which is scary beyond anything I have heard of with MTG homes. These homes are not built like regualar homes. They use cheap products and get away with it.
Modular homes are trucked in strapped down to a flatbed trailer. They have to use a crane to put them on the fondation. And the roof has to be put on once the home reachs it destination. This is a true modular home.
Ask if the home has a tongue, undercarriage and wheels attached to the home. That will tell you all you need to know.
And ALWAYS get an inspection & home warrenty before you sign off on it. To make sure all has been done correctly and you are covered for your first year for appliances, A/C furance. Blessings to all!
Thank you! Same! This information is key and something we would’ve looked over. Such a blessing!
All depends. Three years ago my realtor found me an older manufactured home set on a solid foundation in a small town for $70,000. The lot is spacious and came with a two stall two story garage. The lot is on a paved street, all utilities in. So far everything is great. My total expenses for utilities, insurance, and taxes are less than $400 a month which is lower than most lot rents in mobile home parks. I hear of reports of lot rents in Florida having gone up to $1,000. If your retired l would recommend looking for a house in small towns, there are a lot of bargains out there.
I agree!
I am here in Florida. We just changed our homeowners insurance policy as the old one was too expensive. We are in a regular built on site home. Before we could change our policy they required 2 things: a Wind mitigation report, and a 4 point inspection. The wind mitigation requires being able to get into the attic and take photos of the rafters where they attach to the walls. In many mobile homes I know this is NOT possible yet it is required... FYI.
I was a mortgage broker in Massachusetts. We have a list of modular companies at the time I was active. There was 4 out of New Hampshire. Mobile homes nope. Call them anything you want we never finance them
Then you know what it's like to go through a New England winter
I spent 2 years and $100K upgrading a manufactured home in Grass Valley, CA into a really cool little place, with new large redwood deck, new windows, plank floors etc. In the end, we got $430K for a manufactured home on 3 beautiful acres, cedar shingles, cedar stained trim all around, completely new siding. To be honest, I sold as I was worried about the price appreciating any more due to lending issues and perception from buyers. The new buyers I think got an FHA loan for 97% of the purchase price, so FHA does do loans on manu homes. Its all so confusing and best to own a newer slab on grade home as we do now.
Love this video! You played the part of the shady real estate lady so well. Plus excellent info. 👍
This garbage seems to have been going on a long time! I had no idea how much it impacted but thank goodness I walked off the lot! (Clayton, I left bc I was seeing too many lazy building mistakes. If they couldnt make the seams on counters and such line up right I didnt want to find out what *else* wasn't that I couldn't see. Trust yourself, shop smart!)
Are you referring to Claytin Homes in SO. California??? They are on my list to contact for tour. Please let me know, as this would save me travel costs from Washington state. Thank you in advance. BTW, if you are in SO. Cal and can recommend a manufacturer, I would appreciate that as well!
Clayton is all across USA - in southern band. All kinds of horror stories out there on Tik Tok YT and Reddit. Even manufact website reviews are 👎🏽
In the 1950s, my dad bought a house from Sears/Robuck. He said all the wood and and everything needed to build a house was delivered to his land by several trucks. Then he hired people to build it. The cost: $14K. plus whatever he paid to the construction crew who worked for about 3 weeks. He sold the house for $630k.
@@EddieJazzFan I live in a Sears home! We’re actually needing to get an addition for this house. I just need a 1/2 bath and a dining room.
This is a really great explanation of the difference between modular & mobile homes. We purchased a true modular home which was factory built & site assembled. It's approx 1250 sq. ft. It was built in 2000. We are the 3rd owners. It's a metal frame with the same structure of each module with of course drywall. This home is structurally very solid. The walls are very strong & was rated to withstand 150 mph winds. We paid 123k. Purchased 11 years ago, it's the most modern looking house in a neighborhood of brick & wood frame homes. Ours is a stucco which actually has vinyl sheething. Our current appraisal is 249k
Do you have regular dry wall?
Over the past couple of weeks, I visited a Champion home retailer twice... I initially walked in looking for a modular home, for the financing, appraisal, and insurance reasons highlighted in this video.
The salesperson said that what they sold were manufactured homes that could be built to "modular spec" for an additional charge.
Is it possible this "modular spec" jargon is just a rebranding of "modular hybrid"?
I love how you dig for the truth. The devil's in the details when it comes down to real estate. You really do right by your viewership.
Of course it's just a fragrant wisp of wishful thinking, but I'd love to see you have a confab at the same table with other special gals I follow; Alison Arngrim, Eve Plumb, Jeanine Pirro, Elizabeth Johnston, Sarah Douglas, etc.
(A better view than 'the view'.)
Sigh...
Thanks for being beautiful Kristina!
I used to do closings for a manufactured home dealership in Texas. There is a difference when it comes to paperwork. For one, TDLR are the ones inspecting the homes and making sure they are built and set to code instead of TDHCA, who only inspect manufactured homes. Also manufactured homes come with HUD tags where as mods don’t. Not saying it doesn’t still look like a manufactured home, but there are differences. Our financing and inspections changed based on what people were buying. Now with that being said, would I have bought a mod instead, hoping it appraised like a regular house later on? No. We mainly sold them to people who were interested in a manufactured home but the city or HOA would only allow mods. Some people bought them because they “didn’t want a mobile home”, and I never had the freedom to tell them it really didn’t matter. It mattered on paper, but not really in the real world. Hope that helps people who have dealerships tell them it is different. It is, but not enough to make it a better option.
Once again Thank You SOOO Much for talking to me and plus this video! Ms. Kristina they're working better for me since I spoke to you! Thank You So Much!
I recently commissioned a house that was built mostly at a factory and transported to my property (deftly avoiding the discrete categories of "modular" vs "manufactured"). It was delivered in two halves. I was told it was modular instead of manufactured because they were taking it off the wheels and putting it on a foundation rather than leaving it on the wheels and strapping it down. This was a requirement for the area where the property is located. Either way, the financing was normal and the house was built to above code for stick-built homes
My lady friends modular has a Hydro bill half of what my condo has in the same area! and she has twice the space. properly built mods have come of age.
As a contractor who has experience with 'modular and manufactured ' homes, you will be far better off building your own home. Your dollar will go much farther building your own. Your quality will be far superior and your headaches fewer. Run, don't walk from these homes. Buyer beware!
I live in an area where I wouldn't trust any stick built home builder. I have talked to firemen who say they use cheap brackets in the roof that will collapse very quickly in a fire. Plus, they build cheap houses on slabs and charge a fortune for them.
I agree. Stick build never gets done in time, never comes in on budget and is exposed to all the weather. I know ppl with new homes that are loaded with mold. Manufactured homes are built inside therefore mold is not an issue.
You beat me to the mold comment. People don’t EVER talk about mold from stick frames sitting in the rain for days and soaking up water.
I live in Seattle and have seen so so so many construction sites with soaking exposed wood etc all winter every winter. I’ve always wondered how it dries out adequately.
Depends on the contractor. I know mine. So we are building.
So many people are confused with the terms, "manufactured" (old school title: Mobile Home) except now the industry calls them "manufactured" homes to try and make them seem more upscale. Grew up in different Mobile Homes most of my early life. Nothing wrong with calling them what they are, a house on wheels. lol
The term manufactured home actually has a seperate definition from mobile home. Mobile homes refer to a factory built home built prior to 1976 when the HUD building code was introduced to the industry. In other words actual mobile homes were not built to any building code. A manufactured home is a factory built home that is built after 1976 and therefore has to be built to HUD building code upon a permanent steel chassis. Once at the site a manufactured home may be placed on a permanent foundation with all wheels and axis removed. Modular homes must be built to standard local building codes and will not be built upon a permanent steel chassis.
Thank you for a masterpiece video. I am appreciative for your brilliance in the real estate/home market! You have given us extremely important information!
Huh, I wonder if I have one of those hybrid manufacturer homes. We bought it because it was a manufacture home that qualified for conventional loan because of our foundation.
This Housing market collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
Sonya Lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Don’t listen to these lies. Invest in gold and silver. It’s the only thing that will be worth anything. Our government is printing up money with no gold to back it up. Invest in gold.
I am commenting from right here in Baton Rouge, LA.
I work for a PREFAB STEEL construction company here, locally.
When we order a STEEL PREFAB building for any use at all, the first thing I must provide is the building's location zip code.
Every single steel manufacturer in the U.S. must know the zip code first because ALL details regarding BUILDING CODES for that building's location is in the computer hardware, thus the manufacturer can ONLY provide drawings, specs, and a building product meeting ALL code requirements FIRST and foremost.
If any building of any kind is not 100% up to code then no one is is getting a permit to "occupy" the building.
The permit to build can be provided but if not up to codes it WILL NOT PASS inspection no matter what kind of building it is.
BUILDING CODES NOTHING MORE IMPORTANT.
It’s refreshing to just tap a video and the video delivers as advertised. Very knowledgeable and articulate…..well done video.
This is GREAT
As an Appraiser of 20+ years and FHA Approved
I have to laugh very hard as I watch this
All buyers need to watch this
FYI, I have built a few websites, and there is code that most coders put in their websites that updates the copyright for the website to the current year. Websites are often constantly being updated, so it makes sense to have the website copyright be the same as the current year. That doesn't mean the company was founded that year.
Great comment. and for her to mention to stay away from New Company's implies she doesn't believe in people starting new businesses. so therefore how does someone start if she is advising stay away from new companies... Yes, do your due diligence but every company is a new company at some point for a new customer. now sure you may not want to be the first customer but someone has to be for ANY business to become reputable... its about experience, structure, professionalism and delivering your product or service as advertised... Everyone deserves a shot even new customers as well as new businesses.
If you are in doubt on the type of structure, Mobile Homes (Trailers) requires an MCO, Manufacturers Certificate of Origin. You will usually find a placard in the building. Look near power panel, master closet, utility room etc. It is required by law. Now once you find this, you will know it's NOT a modular home of any kind no matter what they tell you. If you are still in doubt, look underneath of the home. If it has steel beams underneath as part of its structure it is a trailer. Modular homes can arrive on a trailer but the trailer leaves with the truck that brought the components. Trailers are installed and the axles removed. Don't ever buy a trailer. EVER
Kristina u are a trip,,terrific education...people need to listen ur great !!!!
Hilarious !! Kristina you out-did yourself on this one! Thanks for the info!
This was a great lesson. Well done! However, a copyright on a website means the written material on the site is protected. Usually, companies will say copyright 2000-2003, which might give you the idea that they've been in business 3 years, but unless they tell you, the best thing to do is call them up and ask them.
Another thing to think about for people purchasing a used modular/manufactured home is a lot of companies are selling them but not the land underneath. In the case of a modular home, you can't move it, and most modular are placed for life, so you are stuck paying space rentals for life and have no choice if the owners want to raise it whenever they want. You are a captive audience. Know that going in the door.
Be very careful,make sure the community has a cap on monthly charges ,if they don’t,get out of there as fast as you can,don’t go into a community where you rent or lease the land,run away,I know,I lived in one ,wound up selling for a loss just to get out
I love your channel as we are looking into buying land a putting a modular home, not a manufactured home. Keep up the great work!
There are real estate "professionals" on RUclips that often interchange the words "modular" and "manufactured" in their titles and descriptions. One question resolves this: Is there a HUD stamp? New MH Advantage homes are manufactured with HUD stamps, but can use site built homes for comparable home prices and can also get the same loans as stick built homes. Aside from the efficiency and economic advantages of manufactured homes, another advantage is that federal law (HUD) trumps any local or state building requirements. This pertains to the home itself, not setbacks, sewage, water, etc. MH Homes look more like regular homes than "mobile" homes and some are built with Energy Star certification.
Very entertaining and great information. Thanks.
I own a modular home it is a crest home i bought it in 1997. To go on my land it came in two pieces and the roof was down it was put on a basement in Vermont. I had to pay extra points for a building loan and my first appraiser did it against doublewides even though it was a modular after that I refinanced it was a regular loan with with loan interest rates. I also has regular homeowners insurance. My friend has a doublewide and she has had horrible time getting insurance since Vermont added flood insurance to the homeowner insurance because we had floods and so many trailer parks flooded.
I have audited both modular home builder and manufactured home. Modular home is built so strong that it can be lifted off from the foundation in one piece by a couple of front loaders. Manufactured home is a flimsy version of a standard shipping container.
Just because a company has a new website or is new, shouldn't be a red flag. With mergers and acquisitions heating up and as modular is experiencing explosive growth in the construction industry, you're going to see new names with apparent "young" companies. The real issue is what building standards and code compliance that factory adheres to. If they can't or won't tell you, RUN.
This was short and to the point. Great information. I have been interested in a modular home for some time. I now realize I have a lot of work to do.
I am in manufactured homes often, due to poor engineering the products do not hold up due to mistakes made not by the product but by install issues of the product. The quality of the build of these single and double wides with price paid for them is shameful. These homes are not built to last. The designs look like a 5th grader designed them ignoring basic rules of building design. 😢
Very informative video. This is your strength. Thanks
I've been watching your channel recently because I need rural property for my dogs. I have 3 currently and city ordinances allow 2. I found land, and would love to do a shed to house setup. And then build a house in about 3 years, or add a manufactured home. Could you please address the shed to house process and if it's financially feasible? 🙏 Thank you.
As an appraiser, generally I can tell by looking at the exterior as the shape of a manufactured (MFG) home is best described as a box. Some people have gone to great lengths to hide that a home is a MFG by removing the HUD tags on the outside, and removing the data plate inside. Simple way to tell is when I look in the crawl space, if I see a steel holding up the floor its a MFG EVERY. TIME! Also, even if you have a MFG that you've done a stick addition too, I still have to use the MFG appraisal form and use other MFG sales for comps.
See "a steel" what? A steel pole? A steel plate? A steel skateboard? See a steel what?
@@mikecleveland7453 a steel I-beam running the length of the home.
My brother put down a sizable down payment for a modular to replace a house that was damaged by sandy in Jersey . The government granted half of the cost and required this specific manufacturer to build it . He also had to pay upfront with a local contactor to tear down his existing house which he did . As you can see it's a bit of a process and things got held up for over a year . When he was finally ready to go the modular company went bankrupt . My brother did not get his money back and the house he lived in was gone . Another insult the government wanted there half they invested back from him but that never occured . All this helped to end his life prematurely . With anything requiring a sizable lead time and down payment there is such a big risk of possibly loosing your investment and like my brother crippling his ability to regroup from this big loss . Not sure if anything he could have done except maybe speeding up the process on his side .
Sorry for your loss.
New Jersey Smh. So sorry that happened to your brother.
i'm a general building contractor, electrical contractor, plumbing & mechanical, HVACR contractor, so i love looking at all the new building technologies so i can have different opyions out there to oofer my cliets etc
Thank you very much for the heads up! Most people don't do the research when it comes to modular are manufactured homes.Nice to find someone not afraid to tell the plain truth.
I'm a Real Estate Broker and own a Manufacturing Home Dealership who also does Modular Homes and can say 100% that this video isn't accurate in that we can build any Manufactured Home as a Full Modular and it'll appraise and sell as a Stick Built Home with the same financing.
Thanks for this. I was waiting to see what the differences were for quite a while
Such great information. Company's like Deer Valley, Franklin Homes, and others in that line are all hybrid types of Modular? Then there is on frame, off frame modular type of homes too. Also, there is what's called a cross mod. Where the base of your home is manufactured, then a built attached garage, carport, a built front porch, using some type of stone for the under pinning is what makes a cross mod. Also if you put some sort of addition to the home as well. As always thanks for the great information 👍
Thanks sweety! Your acting is on point!
Yeah... That's pretty shady...
How do you feel about barn dominium homes that you can order? You consider them the same category?
same category as what?
In Florida, manufactured homes can’t get wind-storm coverage (hurricane). I don’t know if even modular homes could get insured, certainly not in Miami-Dade, where concrete block is the standard. Ian is causing rates to skyrocket and many people are getting dropped, having to go to Citizens. Oh, and true hurricane straps wrap around the TOP of a joist and are fastened to the house walls (again anchored in concrete is best) not those little bow-tie brackets shown in the vid.
I noticed USAA calls them Modular’s,manufactured… All at once, but they do insure them.
We have a modular home and have lived in it for more than 20 years. It is actually better built than a traditional stick built home-better insulated, and stronger due to it needing to be shipped on the back of a semi. It would have cost a third to half more to have a stick built home put on our lot.
Deer Valley claims they can make their homes into a modular version. They charge $20-50K depending on the size. Would this be a true modular? Also, the cost ends up being around $175 p/sqft. How is that cheaper than sight built?
it's not. you're getting a stick/sight built home and paying for it. theres no free lunch. if there was everybody would do it
Are prefab homes common in the USA? Where I live it's very common for homes to pop up in a day (when the foundation is complete).
Modular homes are getting more popular but prefab is still more common.
Prefab is what we call modular. But a lot of prefab here doesn’t meet building code.
I bought a manufactured home in 2019 before covid on 2.5 acres of land. Got everything included. It looks like a house on the inside. Its 1900 sq foot. Paid 230k out the door for the manufactured, 400 sqfoot carport. 2 shipping containers and a 2 acre fence. Its on a permanent foundation and is considered a hpuse, not manufactured. 5 years later its worth 450k. The day i got insurance i had to get 320k in insurance.
Hi Kristin. Great Info! I have been a mobile home installer for several years and have found that there is a lot of little pieces if info, and certain procedures that help mobile home owners refinance. Sometimes, just tie-downs underneath, other times a retro fit concrete skirting. Also, some insurance companies and banks are easier to work with than others. 👍
I saw a modular home online for $299,000, which I think is pricey, considering that one would have to purchase a lot to put it on.
Nice video and well done! I love the cut scenes. I can picture the sales people saying those exact things. Nothing to see here, look over there.
I do have to disagree on what is said about when the company started though. A copyright notification on a web site, when properly done, indicates when the copyrighted materials on the web site was put together and published. Although mist companies will launch a web site with the beginning of the company it is not necessarily equivalent, especially if it was a complete redesign of the site.
Better is to check the state's business registry. That will tell you how long that specific entity was around.
At one time, when we were putting together a home on land package, we looked at stick built, modular and manufactured homes. Stick built were the most expensive at first glance. But as we Dug deeper, you have to also take a look at what you get and don’t get. At the end of the day, you get what you pay for.
The problem we found with modular homes was they were very close to the price of a stick built, and while they was they were much more expensive to build than a manufactured home, were very restrictive in configurations available and if you wanted more of the features you got in a stick built, the prices escalated very rapidly. So for affordability reasons, we wound up going with a manufactured home and we converted it into a land package when we were done, so financing and resell would be much more attractive.
In spite of the so called improvements in manufactured homes over the years, they are still a house trailer at the end of the day. A stick built house is still a house and the modular home remains in that fuzzy almost but not quit a regular house.
For all intents and purposes, your going to spend about the same amount of money on the land and it’s preparation for a house whether it’s a manufactured, modular or stick built. The advantage for a manufactured house is you can save quite a bit of money on foundation costs because you can set it up on blocks.
So where can I find a true Modular company? We are ready to buy.
I bought my manufactured home a few years ago. Paid 87k for it but had all of my concrete and dirt work included as well as taxes and fees added to the mortgage. Ended up being 111k after all said and done. They recently appraised it as a regular built home because it is on a concrete foundation. It now appraises at just over $151k along with thr acre it sits on. The home I purchased is still available to purchase new but it is now $140k for it alone and I paid $86k just a couple years ago.
Lol I love the bad seller character. Great video and great info
I've learned so much from your informative videos and all of the information is easy to understand BTW you're very entertaining as well thank you.
Thanks, Kristina, for clearing up the confusion around these homes.
thanks for the tips, do you know if Clayton Homes is a true modular company, we looked at some in Smoky Mountains recently and posted them, because we were considering them
Had a salesman who worked at a well known mobile home company tell me that modular homes are essentially the same as mobile homes- just not on wheels.
Project Manager is responsible for the planning, procurement, execution and completion of a project. The project manager is in charge of the entire project and handles everything involved, such as the project scope, managing the project team, as well as the resources assigned to the project
Become one!
Thank you so much!
ok who sells the real thing? Who is the brand name of the Modular home?
The ultimate question in my opinion is - which code does it meet? HUD or IRC (local stick built building code)
Another way of asking this - is it “real property” or “personal property”?
“Real” property means it meets IRC code and its on a foundation.
“Personal” property means it meets HUD code and its “mobile”.
Mobile homes depreciate. I can't believe what 15 year old plus old homes on a LEASED LOT are selling for these days!
There is only one company in the US that insures manufactured homes. Foremost.
Unless I can pay cash for a home, I refuse to buy one in this economy with those interest rates. No to mention the ridiculously over inflated prices of all the homes in the market.
I bought a 1978 home in a nice neighborhood. We had a deep freeze and a pipe burst in the upstairs bathroom. We noticed 2 things. There was no exterior sheathing, just some type of fabric. We also found a strap. We had no idea that our home was a modular! I certainly hope the standards have improved since then. There was very little insulation in the walls, which we found shocking. (We ended up pulling the siding, installed 1" rigid insulation and resided...worked wonders in terms of comfort and utilities).
Even though new construction is crashing down in Texas with unsold inventory. I shopped true frame off modular home builders and they have a six month wait to get one. Not really a time saver. Who knows what the interest rates will be in 6 months.
Hi, I keep hearing about the new 2023 FHA loan. 3.5 down with a 580 credit score, know anything about it.
Housing markets in UsA are going through some severe changes. For example, so called luxury single family homes or luxury Apts buildings are owned by REITS; they only care about bringing max returns to their shareholders.
Then what’s the point of manufactured homes? why doesn’t everyone just build Modular?
Modular homes are slowly growing in popularity here in Florida. Can’t wait for true modular to get more popular!
Another great video!
Is there some kind of registry of companies that build these types of houses?