Buying a Manufactured Home in Texas: Everything You Need to Know

Manufactured homes offer an affordable and flexible housing option for many Texans. As real estate costs continue to rise across the state, manufactured homes provide an alternative to traditional site-built homes. Not only do they offer quality construction and modern features, but there are additional financing options that make homeownership even more accessible. But before you buy, it’s essential to understand what manufactured homes are, how to finance them, and what steps you need to take to secure your new home.

What is a manufactured home?

A manufactured home is a factory-built home that is constructed off-site and then transported to its final location. Unlike traditional site-built homes, these homes are built according to federal construction and safety standards set by the U.S. Department of Housing and Urban Development (HUD).

Many people use the terms mobile homes and manufactured homes interchangeably, but there is a key distinction:

• Mobile homes refer to factory-built homes produced before June 15, 1976, when HUD codes were first implemented.
• Manufactured homes are built after this date and must meet strict guidelines for safety, durability, and energy efficiency.

These homes can be placed on private land or in manufactured housing communities, where owners lease the land but own their home. They come in various sizes, including single-wide, double-wide, and even multi-section homes that can rival the size and features of a traditional site-built house.

What You Need Before Buying a Manufactured Home

Purchasing a manufactured home requires some preparation. Here’s what you need to have ready before making a purchase:

1. Decide on Your Location

Before you buy your manufactured home, you’ll need somewhere to place it. There are several options available when it comes to sites for manufactured homes. You can buy private land and place the home on site, or you can place your home in a manufactured home community.

If you decide to place your home on your own private land, you may need to complete a few more pre-purchase steps to ensure that your lot complies with zoning regulations and check for any potential deed restrictions that may impact your purchase.

2. Secure Your Financing

Once you’ve decided where to place your home, you’ll need to determine how much home you can afford and how you’ll be paying for it.

As with on-site homes, it’s always a good idea to get pre-approved for a manufactured home loan before beginning your home search in earnest. Factors like your credit score, the loan amount, and the interest rate will determine your monthly payments, and therefore how much home you can afford. The good news is that there are various financing options available for manufactured home buyers:

• FHA Loans: The Federal Housing Administration (FHA) offers loans specifically designed for manufactured homes. FHA loans have lower down payment requirements and flexible credit score standards, making them an attractive option for first-time homebuyers.
• VA Loans: Eligible veterans and active-duty service members can finance their manufactured home purchase with a VA loan. These loans often require no down payment and come with competitive interest rates. It’s important to note that this type of loans can onlybe used to purchase manufactured homes and not mobile homes, that is, those built after June 15, 1976.
• Fannie Mae and Freddie Mac Loans: Fannie Mae offers the MH Advantage™ program, which provides financing for eligible manufactured housing that resembles site-built homes. Freddie Mac’s CHOICEHome® program is a similar option for prefabricated homes. These loans typically have longer terms and lower interest rates than traditional manufactured home loans.
• Chattel Loans: If you’re purchasing a manufactured home without the land, a chattel loan is an option. This type of loan is similar to financing for a vehicle, as the home itself serves as collateral. While loan amounts and repayment terms vary, chattel loans usually have higher interest rates than traditional mortgages. It’s also important to note that not all banks and credit unions offer chattel loans, so you may need to do a bit of extra legwork to find chattel lenders in your area.
• Personal Loans: For buyers with strong credit, a personal loan may be an option for financing a factory-built home, though this route often comes with higher rates and shorter repayment terms.

3. Understand Additional Costs

Aside from the cost of the home itself, consider:

• Land costs (if purchasing separately)
• Site preparation (leveling, foundation, utilities)
• Insurance and taxes
• Delivery and setup fees

These costs can be significant, so it’s important to do your research and factor them into your overall budget.

4. Choose the Right Floor Plan and Features

Think about your space needs—will a single-wide be enough, or do you need a double-wide? Features like upgraded insulation, modern appliances, and energy-efficient windows can improve your home’s value and comfort, but understandably come with a higher price tag. As when buying any home, you’ll need to balance your family’s needs with your budget.

5. Work with a Reputable Dealer

Ensure that the seller is licensed and provides all necessary paperwork, including the title, bill of sale, and warranty information. 

Where to Buy a Manufactured Home in Texas

Texas has a strong market for manufactured housing, with numerous dealerships, retailers, and communities that specialize in these homes. Here are some of the best places to start your search:

1. Manufactured Home Dealerships

Many dealers sell manufactured homes directly from their lots. These dealers offer new and pre-owned models and often help buyers navigate home financing options.

Some of the top dealers in Texas include names you may recognize like Palm Harbor Homes, Clayton Homes, and Oak Creek Homes.

2. Online Marketplaces

Websites like MHVillage, Zillow, and Realtor.com list manufactured homes for sale across Texas. These platforms allow buyers to compare prices, sizes, and features from the comfort of their own home.

3. Manufactured Home Communities

Many manufactured housing communities across Texas offer homes for sale or rent, with amenities like clubhouses, pools, and security features. Living in a community may be a good choice for those who want a low-maintenance lifestyle.

4. Private Sellers

Some manufactured home owners sell their homes independently. Buyers should conduct a thorough inspection and verify ownership documents before purchasing from a private seller. If you decide to buy from a private seller, it’s a good idea to refer to the Texas Department of Housing and Community Affairs’ Manufactured Housing Division to find manufactured home records, including ownership and tax lien records.

Is a manufactured home right for you?

A manufactured home is a great option for those looking for affordable, flexible housing in Texas. Whether you’re a first-time homebuyer or looking for a cost-effective alternative to site-built homes, understanding your financing options, where to buy, and what to prepare can help you make a smart purchase. By researching your options and securing the right home financing, you can find the perfect factory-built home to suit your needs.