- There are some very costly
mistakes that people make when they decide if they're gonna buy a modular home or a manufactured home. Today, we're gonna be going
over those differences before you decide to purchase one, so that way, when you
go to resell your home, you will get the most money
that you were expecting back. So let's go ahead and
look at those differences, so you don't make those
costly mistakes in the future. (soft upbeat music) What most people don't realize, when they hear the word modular
home and manufactured home, they think well, it's the same thing. Yes, both of these homes
are built in a factory, a modular home, it's built in pieces, and it's built to exact specifications that it would be for a
universal building code. It will meet, if not go above
the standard of your area. And they have the two-by-fours,
they have the windows, just like they would for a
traditional stick-built home. The only difference is
that it shows up in pieces and they put it together within that day. Now when you go to purchase
your manufactured home, they usually come in one to two sections, whether you're buying a
double-wide or a single-wide or even a triple-wide. Somebody told me there
was a quadruple wide but I'm not 100% sure about that. But I did also see one that is a two story manufactured home. When these come, they come on a chassis, and they're put together on not necessarily
attached to a foundation. Unlike a modular home that
once it's put in its location, it's adhered to a permanent foundation. Most manufactured homes are not attached to a permanent foundation. They're left on a chassis where the tongue and
axle has been taken off. And then they're put on a,
sometimes a concrete pad, sometimes it's a limestone pad, and then they put hurricane straps in to keep it into its location. It's not permanently attached
to a foundation itself. (soft upbeat music) Now when you go house hunting, you're gonna probably
notice a big difference in the look of a modular
home and manufactured home. Now manufactured homes
have come a long way since probably 1976. When you think of manufactured homes, some people call them mobile homes. Anything built before 1976 is called a mobile home or trailer. Anything after 1976 has to meet HUD standards
of building codes which always are changing with the times so they are upgrading those standards. Just know when you're looking
at a manufactured home, a lot of times they do
have a certain look to them that says, "Auto manufactured home." Now when you look at a modular home, sometimes you're kinda questioning, "Is it a mobile home,
is it a standard home?" The ones that they have in Europe, they are just modern,
beautiful pieces of artwork. And the ones we have here are
beautiful country style homes, and it appraises the same way. This is where the differences
between manufactured homes and mobile homes have
the biggest discrepancy. So over time, when you
buy a manufactured home, some people, some experts will say you'll never gain value on it. - What's your, what's your
gut feeling tell you that, that mobile home is gonna do, is it gonna go up in
value or down in value? - [Man voice on a call]
Probably not very much in value probably not gonna go
up in value very much. - Not gonna go up at all. - [Man voice on a call]
But I'm just trying-- - It's gonna go down in value. - [Man voice on a call]
Quick as I can, right? - It's gonna go down in value, it's gonna go down in value. - [Man voice on a call] Okay. - It's a car you sleep in. Okay. - Which I will argue to death. So what does that mean
for you in the long run when you go to resell your
property in many cases, if you found the right location, you can still earn and gain
value on your manufactured home so don't let anybody poo-poo on that idea. I will tell you this though, do not buy a manufactured home and then put it in a
manufactured home park and feel like that you're gonna
gain any value off of that. - But buying a mobile home and renting the land underneath it, can be financially catastrophic. - You will not, like I've never
seen anybody gain any value except for in this little
area in California, you have a good location
of your manufactured home, you're gonna earn more money. And it doesn't mean that just
the land increased in value, the structure itself does have value. In some cases it will not,
it depends on your area. But make sure you find an area
for your manufactured home that will increase in value. Always work with your
real estate professional, that's an expert in manufactured homes, so that way you're getting
the best bang for your buck. And if they don't know
anything about them, move on to somebody else that does. (soft upbeat music) Now, another huge difference when it comes to manufactured home or a modular home, is the
way that they're financed. Now, if you're purchasing
a manufactured home that's already settled into a place and it's attached to a piece of property, now they qualify for every single loan that you can think of when it comes to to traditional financing. They will qualify for VA,
RD, conventional, FHA, a lot of times real estate
agents will tell you if they do or they don't, and then you work with
a traditional lender. If you buy them off the lot, though, this is where a lot of people
have had the problems happen, sometimes they give you loans with extremely high interest rates when you could have qualified for something that was
a lot less expensive. So make sure prior to ever
even signing on the dotted line for a manufactured home,
check with your local lender, only if you're attaching
this manufactured home to a piece of property, I would not use the lender that they have at the facility itself. Find one outside that works
with manufactured homes, and that way you can get
the best interest rate. You don't wanna be stuck
with an interest rate, that's not gonna help you in the long run when you go to resell your house 'cause you ended up spending so much money on the interest itself. Always check with as
many lenders as possible that work with manufactured homes. Now if you're purchasing one
that's already been lived in, and it's already attached
to a piece of land, again, make sure you find a lender that works with manufactured homes. If they're unsure, find somebody else, because somebody will get you
the best bang for your buck. I want you to get the best
interest rate you can, and there's plenty of lenders out there, they're willing to help you. (soft upbeat music) Now, when it comes to
financing a modular home, if you're purchasing one, before it hits the land, you're gonna need a new construction loan. Meet with a couple lenders
that are not in the facility that you're purchasing
the modular home from and see what they have as
far as new construction loans and see if you can beat the
price that they're offering from the loan itself. There's no difference in
purchasing a brand new house that was traditionally
built and a modular home, you can qualify for the same loan. So the biggest difference
between the modular home and the manufacturer homes, comes to the point when you
want to resell your home. (soft upbeat music) So every single home that's sold within the United States, before you can get a loan on it, has to be appraised, and
the appraiser comes in and gives it a certain kind of value. Well, with a modular home, even though it was built in a factory, they appraised at the same level as a traditional stick-built home. Now with a manufactured home, they're gonna appraise for a lot less. But don't panic, if this
is what you can afford that doesn't mean that
you made a bad investment, it just means that you
could have made a lot more if you were able to
purchase a modular home. (soft upbeat music) Now you know the costly
difference between a modular home and a manufactured home. Either one is a great alternative way of buying an affordable house. One of them is just gonna get you a little bit more money in the
long run, and that's modular. But I don't want you to think that because you bought a manufactured home, you're in a bad way. Because manufactured homes are fantastic. They're energy efficient, they're a great way to get out of renting, and they do resell as long
as they're in a great area for more money than what
you purchased it for. I don't care what those experts say. If you find a good real estate
agent to sell your property, and you put it in a good
location, you will make money. There's plenty of people
in many of my videos that will tell you that they made money off their manufactured homes, so don't listen to people
that will poo-poo on you. Plus, it's a great affordable way that I'm trying to find
housing for the 40,000 veterans throughout the United States. So keep following me on this journey 'cause I'm trying to get
as many homeless vets into manufactured homes as possible. So be sure to subscribe now. My name is Kristina Smallhorn your real estate whisperer and I tell you all this,
because you matter.
