Looking for affordable housing in Northern California? A manufactured home can be what you need! These houses offer you a modern comfort while remaining within your budget.
However, it can be challenging for you to handle the purchasing process without any knowledge. With different types, financing options, and regulations to consider, you need to understand every aspect.
Hence in today’s guide, we’ll discuss:
- Manufactured homes and their types
- Benefits manufactured homes in Northern California
- Buying and financing considerations.
Let’s get into it.
Manufactured Home: What is It?
Manufactured homes are actually factory-built houses constructed according to HUD set codes. This house generally is built with a steel frame and then assembled on-site. It is installed on a temporary or permanent foundation.
Manufactured homes offer many impressive benefits. Such as-
- These homes are more affordable than traditional homes.
- You can have the customization options. Like the floor plans, living room kitchen, or exteriors as you want.
- It requires less time to build than the traditional construction methods.
- They come in various sizes and styles.
- The homes have high safety standards.
Are Manufactured Homes and Mobile Homes The Same?
Manufactured homes and mobile homes in Northern California are often considered to be the same. But it’s actually not.
True, these two types of housing are built in the factory setting. But they have unique features that make them different.
The main difference is here-
- Mobile homes were built and sold before July 1, 1980. It is when the HUD codes were not established.
- Manufactured homes are built and sold after July 1, 1980, and after the implementation of HUD codes.
However, here are comprehensive differences that you may find helpful to understand clearly.
| Feature | Manufactured Homes | Mobile Homes |
| Construction process | The parts of the manufactured homes are built in the factory, then these parts are assembled on-site. | Mobile homes are fully built in the factory and also delivered in complete form. |
| Mobility | These homes are not intended to be mobile | These homes are often mobile initially. However, they can be fixed to a foundation. |
| Foundation | Generally built on the permanent foundation | Can be attached to the concrete foundation |
| Building codes | Must have to comply with the building codes like the regular homes | May not comply with the same building codes |
| Durability | As durable as any on-site built home | Durable |
| Final appearance | Indistinguishable from a traditional house | May still resemble a mobile unit |
Manufactured Home Types in California
Manufactured homes come with different configurations and placement options. The modern home builder offers three types of home choices.
Their building process offers unique benefits to match your lifestyle and housing requirements.
Check the manufactured home types in Northern California below.
1. Single-wide
It is the most common type of manufactured home. These types of homes are generally built on narrow frames. These houses can be 80 feet in length and 14 to 18 feet in width in general.
The interior rooms of single-wide homes can be connected in two different ways.
- Without a hallway separating them or
- Can be accessed through a narrow hallway.
2. Double-wide
As for the double-wide manufactured homes, they are usually built by combining double single-wide platforms connected in the center.
It is mainly designed to create larger living spaces than the single-wide mobile homes. As for the length and width of these houses, they can be 80 feet and 32 feet respectively.
If you are looking for an affordable housing solution for your family or just want more rooms for comfortable living for yourself, double-wide homes can be ideal for you.
3. Triple-wide
Also known as two-story manufactured homes, triple-wide homes offer additional floor plan options. It is the largest type of mobile home available out there.
In this type of manufactured home, three single-wide units are connected together. Consider the triple-wide manufactured home when you have a large family or need extra space.
However, you may face problems in placing these homes in the mobile home community due to their larger size.
Reasons Why California Is Perfect For Manufactured Homes
Looking for sustainable living in manufactured homes in Northern California? Feeling a little skeptical? Let me share with you some more than good reasons why California can be an ideal living option!
Secure Living Option
In California, manufactured homes offer a secure living option with amazing weather and climates! Here, tornados, hurricanes, or floods are less common than in other areas of the country.
Safety and Security
California has a comparatively low crime rate, which contributes to a safe and secure living environment for the residents. Moreover, many of the manufactured home communities in California have successfully avoided the risk of wildfire.
Inspection and Compliance
Every single factory direct home in California undergoes an inspection to ensure compliance with regulations.
Here, all the communities need to follow the state evacuation plans during emergencies.
Earthquake Preparedness
Fear of earthquakes? But that does not even virtually exist in the manufactured communities in California! They are all built on steel support piers.
Amazingly, they are designed to provide stronger seismic protection. Moreover, with durable exterior studs and a high proportion of shear walls, it further enhances home safety during seismic events.
Affordable Price
In California, the starting price for a manufactured home of 1,800-square-foot is about $162,000. The price includes both land and site improvements! In contrast, as for traditional homes, the average sales price is around $655,000.
Manufactured Home Communities In Northern California
Well now let’s get to know the different types of manufactured home communities in Northern California.
Check it out below to get a better idea of what each one has to offer you!
| Manufactured home communities | Description |
| 55+ Communities | Also called retirement communities. It is an affordable housing option for those aged 55 or older. It needs low maintenance but may have different loan requirements. |
| Land-Lease Communities | Here, residents live in their own homes but lease the land from a business entity or individual. You may need lower upfront costs but must have to follow the landlord’s rules. |
| Resident-Owned Communities | Homeowners from a cooperative jointly own and manage the land. They can have control over the land and maintenance. But it will likely increase their responsibilities. |
| Mobile Home Park Chains | Is a centrally controlled park. You can have better oversight and management but may lack the personal touch. |
| Budget Communities | These communities are focused on affordability. So, you will have a lower cost of living but in return, there may be a lack of amenities and services. |
| Family-focused communities | Welcome residents of all ages. You’ll be offered family-oriented amenities but you may have crowded feelings. |
| Luxury Communities | These are gated communities that offer high-end amenities and services. In these executive homes, you can have an enhanced living experience with less traffic and noise. However, it may have higher costs associated with living. |
How to Buy A Manufactured Home in California
Below are some important things to consider for buying a manufactured home in California.
Determine Your Budget
Set a budget for buying the land even before starting searching for a home. You should consider the cost of land and all the potential expenses. It may include the utilities and development of the house.
For example, you need to spend a few more dollars to connect the utilities if you buy undeveloped land. So, plan comprehensively to avoid any financial surprises later on!
Understand Your Financing Options
If you think you will require loans to buy the manufactured home, research your financing options thoroughly to find the best fit for your financial situation.
Below are some options for manufactured home financing in Northern California available for you.
i) Chattel Mortgage
Chattel mortgages are easier to get even with a low credit score. You can take this loan for any movable property, like mobile homes or accessory dwelling units. It generally has a shorter payment period.
Here, the property you are buying becomes collateral. The lenders will own it until the loan is paid back. If you fail to pay it back on time, the lender can take the property and sell it to pay off the debt.
ii) Personal Loans
You can also have personal loans to buy your manufactured home. However, these loans have high interest rates and strict credit requirements. You should better not go for it until you have a strong credit score.
iii) Government-backed programs
You can also use some government-backed programs to buy your manufactured homes. Such as-
- Federal Housing Authority Home Loan Program
- Department of Veterans Affairs (VA)
- Single Family Housing Guaranteed Loan Program
- Fannie Mae or Freddie Mac
Check Your Credit Score
We always suggest knowing your credit score before buying a manufactured home. It’ll help you to understand what type of loan you should get. For instance,
- Personal loans can be a good option for you if you have good credit.
- You may consider a chattel mortgage or other loan option if your credit score is less than enough.
The below table highlights the required credit score for different types of loans.
| Type of Loan | Min Credit Score | Typical Rate |
| Fannie Mae | 620 | varies |
| Freddie Mac | 620 | varies |
| FHA | 580 | 5.4% |
| VA Loans | 640 | 4.5% |
| USDA Loans | 640 | 2.8% |
Search Online
You should search online for manufactured homes in Northern California to find the available land in your desired location.
You can also consider working with a real estate agent who is an expert in land sales. They can help you to find the best property for you. Moreover, navigation of the purchasing process will also be easy with their help.
You can also get important insights from knowledgeable home consultants.
Visit the Mobile Home Community
We recommend visiting the mobile home community before making a purchase. Spend some time getting to know the community. Walk around the neighborhood and check for the amenities available there.
It will help you to decide if the community fits your lifestyle. You can ensure a good place for you and your family.
Check Mobile Home Manufacturers and Their Products
Start by looking into modular housing manufacturers in Northern California to find out the best and most reputable housing industry.
Explore the manufacturing options you have in your area. Additionally, visit their home models and look for customer reviews and ratings.
This thorough research will help you to find a reliable manufacturer and ensure a smooth buying experience.
Familiarize Yourself with California Regulations
Next off, you need to understand the California regulations for manufactured homes to save you from any legal issues.
For instance, the Manufactured Housing Act of 1980. The law ensures that the houses meet safety and quality standards.
You should also check out the local zoning regulations. It will help you to ensure you can legally place a manufactured home on the land you’re considering buying.
However, below are some key considerations to keep in mind.
- Permits and Inspections
Permits are necessary to operate a manufactured home, or even buy a new one.
- Modifying a Mobile Home
You must also have to obtain a permit before starting any work to alter your factory-built homes.
- Registration and Titling
You need to get your manufactured home title and register correctly from the specialized services, as failing to do so can lead to complex legal issues.
Start the Paperwork
When you have found the right piece of land, start the paperwork. You should also consider working with the real estate attorney to review all the agreements.
It will help to ensure all the legal requirements are met before closing the deal. Necessary documents may include-
- Sales contract
- Mobile home bill of sale
- Certificate of Title
- Additional documents may include (if applicable)
Manage the Installation Process and Delivery
After completing the purchase, work with your manufacturer or dealer for the manufactured home installation in Northern California.
Ensure all the preparations, permits, and utilities are ready. You should supervise the setup to ensure your home meets California’s safety and quality standards.
Where Can I Buy A Manufactured Home in Northern California?
A number of companies build manufactured and modular homes, selling them directly to the buyer or through retailers.
The county does not endorse any factory-built home dealers in Northern California. However, many established companies like All American Modular LLC offer customizable options to homeowners.
You can buy manufactured homes in Northern California in a variety of types, sizes, and configurations to meet your specific needs.
They focus on energy-efficient green building practices and quick construction timelines. Moreover, they ensure compliance with zoning regulations and site conditions.
Manufactured Home Refinancing in California
Let’s say you are already a homeowner but need help with your finances. Then manufactured home refinancing in California can be a good option.
It allows you to secure lower interest rates, reduce monthly payments, and enhance your credit. Moreover, you can pay off your mobile home loan more quickly and pay off debt with this favorable option.
However, it must meet some requirements to qualify to refinance your mobile home loans. Below are those.
Property requirements:
- You have to own the land where the manufactured home is placed. It should not be located in the mobile home park.
- The home must be securely placed on a permanent foundation that meets the HUD standards.
- Your property must be classified as real property (real estate)
- Your home must be built after June 15, 1976.
- It should have no mobility like wheels, axles, or hitches.
- Moreover, your house should be at least 400 square feet in size with 12 feet wide.
Financial requirements:
- You will need a minimum credit score between 580 to 620.
- It also required a qualifying DTI or debt-to-income ratio.
- As for the acceptable DTI, it can vary. However, aim to keep your DTI below 43% for better chances of approval.
[Note: Your manufactured home must comply with the home standard set by the HUD. You will need the HUD label to refinance your manufactured home loans. The HUD label can be found generally outside of the dwelling]
How Are Manufactured Homes Taxed in California?
Manufactured home taxation in California can depend on the foundation type and purchase date.
However, understanding how mobile homes are taxed here will help you determine whether your property will be taxed as personal property or real property.
Based on HCD 433A Permanent Foundation and Real Property Classification
Below is an overview of how manufactured homes are taxed in California based on its foundation.
Permanent Foundation (HCD 433A Form)
If you want to classify your manufactured home as real property, you must install it on a permanent foundation. Here, you will need to submit an HCD-433A form to the local building authority.
Once this foundation is recorded, your manufactured home will be treated like any site-built home. It will be, then, subject to local property taxes.
Under California’s Proposition 13 rules, property value increases are capped at 2% annually unless there is a change in the ownership or the construction.
No Permanent Foundation
However, if your home is not installed on the permanent foundation, the HCD-433A form is not recorded. It will be regarded as personal property.
The titles will be tracked by the California Department of Housing and Community Development. Depending on when the mobile home was built, it is subject to either HCD license fees or local property taxes.
However, their values can temporarily drop if the market value comes down below the assessed one.
General Taxation Based on Purchase Date
In California, manufactured homes are subject to two main taxes.
- When purchasing or reselling manufactured homes, sales tax or use tax is applied.
- Owners of the manufactured home are responsible for paying local property taxes each year. It is also known as an in-lieu fee.
If you have bought the manufactured home anew or after July 1, 1980, it will be automatically included in the local property taxes.
However, if you purchased a home before that, you or your previous owner will get the option to switch from paying the annual vehicle license fee to local taxation.
The following table can be used to determine the taxability of manufactured homes in California.
| Manufactured homes | Taxability |
| First sold before 1977 | |
| Manufactured homes | Non-taxable includes in-lieu license fees |
| Accessories installed with the home when first sold | Non-taxable. It also includes in-lieu license fees |
| Accessories added after the home has sold | Taxable |
| Accessories are permanently attached to the land | Taxable |
| First Sold Between January 1, 1977, and June 30, 1980 | |
| Manufactured homes | Non-taxable |
| All accessories | Taxable |
| First Sold on July 1, 1980, and After | |
| All manufactured homes and accessories | Taxable |
Conclusion
Northern California manufactured homes offer affordable housing solutions with different community options. You just need to know your preferences and assess what suits your lifestyle the best.
Choose reputable companies like All American Modular LLC, or Clayton Homes due to their unwavering commitments. With careful research, you can navigate this market successfully and fulfill your homeownership dreams!
FAQs
Are manufactured homes legal in California?
Yes, factory-built housing is legal in California. You can have your home in any zoning area where traditional single-family homes can be built. However, they must be on a permanent foundation, including a minimum of 2 garages. The legal status of manufactured homes in California is the same as that of single-family homes.
Where can you put a manufactured home in California?
As for placing manufactured homes, you can put them in any lot zoned for a single-family dwelling. However, you have to ensure that it meets the local zoning regulations and is installed on the permanent foundation. You can put it anywhere as long as these conditions are met.
How much do you have to put down on a manufactured home in California?
The down payment for manufactured homes in California is 3.5% when you are qualified for an FHA loan. However, conventional loans may require a minimum 5% down or no down payment at all with some VA loans.
Can I buy a lot and set up a mobile home in California?
Definitely! You can buy a lot and set up a mobile home in California. However, you must have to ensure that the land is properly zoned for such use. However, it must comply with the legal regulations regarding the permits and the installation requirements. Then you can purchase your own land or buy a lot in a mobile home park.
How long does it take to buy a mobile home in California?
Actually, it may take 100 to 150 days to buy a mobile home in California and approximately 60 to 120 days when you are making a cash purchase. However, it will depend on some factors. For instance, the purchase time can be delayed due to factory backlog, weather, or adverse credit history.
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