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Manufactured Homes

First off to define Mobile homes, also known as "manufactured homes," they are built in a factory and placed on a trailer chassis to allow them to be moved. Mobile homes are sometimes placed in a mobile home park or on leased land. the owner rents a space or leases the land it is on, but owns the mobile home itself.

Alternatively, mobile home owners can place mobile homes on land they own or are in the process of buying through a lender or under contract with the land owner.

Let's discuss owning a manufacture home in a mobile home park!

The advantage is that they are often a lower-cost option. This make’s homeownership easier to achieve and more affordable. Since mobile homes usually cost less per square foot than a stick-built home, you can get more square footage for your money many times. Another advantage you might find with mobile homes is the flexibility. Since mobile homes are usually more affordable than a stick-built home and only semi-permanent, you can place a mobile home in a park and then decide later on to move it to another park or have it moved to land your own or are purchasing.

Though moving it isn't as easy as it sounds, given the plumbing and other attachments. But, this might be an option if you are less certain as to how long you will be living there and either want to move your mobile home. Lastly, mobile homes offer is that they are usually built in controlled environments. This means they can be consistently built to a high standard. And because they are manufactured in such conditions, construction delays due to weather or difficulty scheduling subcontractors are less likely.

A disadvantage of buying a mobile home is that its value will most likely appreciate more slowly and eventually decrease as it ages, Like a new car, a manufacture home in a mobile home park are considered “personal property” rather than “real property” once a mobile home leaves the factory, it drops in value.

  • "Real property" is defined as land and anything attached to it permanently.

  • Anything that can be removed without "injury" to the land is not real property.

  • Personal property, on the other hand, is anything that is movable and not classified as real property. Even though mobile homes are not always easily removed from the space once placed.

Something to consider is that mobile homes, if they are personal property, are usually more expensive to finance. Personal property loans, sometimes called "chattel loans," usually come with higher interest rates and shorter terms than a mortgage loan.

Keeping a manufactured home well maintained helps its value just like a stick built home can. A disadvantage to mobile homes is sometimes being located in a mobile home park. Despite "owning" your actual home, you will still have a landlord, to whom you will have to pay rent and answer to for your compliance with park rules. The landlord might at some point decide to evict you, in which case you'll be faced with either moving or selling your mobile home. They may decide to raise the rent, costing you more than you had planned to continue to live in the park as. Mobile homes can be challenging to resell when located in mobile home parks. because:

  1. Obtaining financing can be more expensive and dependent on the age of the home.

  2. The management and upkeep of the Park can be problematic.

  3. Mobile Homes are relatively immobile after being set up, and unless the buyer wants to keep the mobile home where it is, finding the right buyer may be a challenge.

  4. The cost to move a mobile home can be several thousand dollars

  5. Some mobile home parks actually sell the spaces to the owner and then charge a fee like HOA’s do. This can be an advantage just like a stick-built house in an HOA that helps keep the neighborhood looking good, which helps to maintain value.

However, despite significant advances in the quality of mobile home construction, there is still a stigma attached to mobile home ownership that could turn some buyers off.

· Mobile homes in a park where you rent the land are placed on temporary foundations. And during a natural disaster, like an earthquake or severe storm, mobile homes can be more prone to damage.

Overall just to recap Manufactured or “mobile” home placed in a mobile home park is less expensive, over time it may cost you more money due to the cost of renting mobile home space every month, But this is most likely your first step to home ownership and can be a great place to begin the journey.

Let’s take some time now to go over the steps that you would take if you decide to put a manufactured home on a piece of vacant land:

· Placing a manufactured home on your land allows you the freedom of home ownership without spending as much as you would for a site-built home. You cannot, though, place a manufactured home just anywhere. When installing a manufactured home, you must comply with federal, state and local laws and rules and regulations. Understanding these requirements in advance of buying both your land and your manufactured home will help avoid future headaches.

  • Usually the first step would be to find financing for the land and the home.

  • It is not necessary to pay off your land before making improvements on it. You can borrow the amount needed to finance the land and home both if you wish.

  • Find a property that has zoning that allows manufactured homes. Talk to Local Planning Department before buying the land or the home. Once you identify the piece of property you want to buy, confirm that you can place a mobile home on it.

  • Check the zoning code for information on set-backs, minimum lot size, minimum building size, etc.

  • Find out if there are hookups to utilities available. Get bids from contractors who can hook up the power and plumbing.

If no utilities are available, that is okay, it just means a little more legwork (which should be reflected by a lower price point on the property). Get bids for a well and septic (including percolation test costs and permitting costs) and, if no power is available, research other options for generating power.

This is important in our rural areas find out about Utilities - water, electricity, and so forth in your home- they can get expensive to install if not readily available - If you find that utilities are unavailable, don't assume right away that the land is not worth buying. In fact, the price of the land will hopefully be less as a result. If utilities are not available, though, you will want to confirm what utilities you will need, and if they can install utilities, and confirm costs so is not cost prohibitive.

  • Once you have chosen a property, you can start looking at homes that will fit on your land. You can buy a new home, which will be delivered to your property by the manufacturer, or you can buy a used home and hire a company that moves mobile homes.

  • If you are buying in town, make sure there is a sewer connection on site or that you can make a connection. If buying in a rural area, where there is no sewer, make sure there is a septic system or that you can install one. Septic systems take space because of the drain field that is required.

  • If there is no driveway in place to your land, you will need to put one in. Get bids from local, experienced contractors for a driveway. Plus a permit for the driveway will be needed from the county or city.

  • Get bids for the foundation. What foundation type is required will depend on the conditions of the building site, design of the manufactured home, and snow loads the home is designed to withstand.

  • Apply for a building permit, and any other permits required. Take a copy of your home plans, or of the contract to purchase your new home from the manufacturer

  • Have the foundation built.

  • Have the well and septic system installed

  • If you are purchasing a new home, have your home site inspected by a representative from the dealership who can help you plan the best way to bring your home onto the site. You might need an oversize-load permit from the Oregon Department of Transportation ("ODOT"). The installer might take care of any necessary transportation permit for you, but you should confirm. If you have questions about this issue, contact ODOT's Motor Carrier Transportation Division - Over Dimensional Permits Unit.

  • Have the home installed. Manufactured dwellings in Oregon must be done in accordance with the Oregon Manufactured Dwelling Installation Specialty Code. A licensed installer should be familiar with its numerous technical requirements. Installers must be licensed to install manufactured homes through the Oregon Construction Contractors Board.

  • If you're buying new manufactured home, installation might be included in its purchase price, but confirm this with the seller. The cost of transporting and installing a used manufactured home is not usually included in the purchase price. If you have to hire an installer, make sure it has the necessary license and is familiar with Oregon code

  • An appraiser performs a final inspection and then sends it to the bank for final review.

  • The bank sends all of the documents to a title company near you, so you can go in and sign.

  • The loan is closed and funds are dispersed to contractors, the dealer (if any), and to any other parties involved.

  • You have now achieved the dream of home ownership on your own plot of land.

Remember to do your own research!

There are four conditions that would need be completed to have a mobile or manufactured home considered “Real Property” rather than personal property.

  1. Obtain a building permit from your local municipality as in City or County

  2. Place your manufacture home on a permanent foundation – this can be concrete or cinder blocks

  3. Obtain a certificate of occupancy,

  4. And lastly record a document stating that the mobile home is attached to a permanent foundation.

  5. A person who owns both the land and the mobile home in our area will usually see the value of the combined property increase over time. Maybe a little slower but that depends on the market.

Ready to get into the housing market? Call us! 541-728.3850


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