So what is a Manufactured Home anyway???

Manufactured homes are given their name because they are built in a factory in sections and then transported to site on one or more trucks. This contrasts to traditional construction where the house is built on site. Typically they are built in regional areas & rural hobby farms. In recent years the industry has grown rapidly as new technology from overseas has reduced costs & increased design flexibility.

What makes them so special? Because of the way they are built they cost less and get built faster, so you don't need to pay a mortgage AND rent for too long while waiting for your home to get built!

What do people use Manufactured Homes for?

There are several variations to the construction methods and uses of manufactured homes

The majority of manufactured homes are just like any other house once they are complete. It is only the method of construction that makes them different. Although most banks don't understand this market finance is available from specialist manufactured home mortgage brokers.

Manufactured home parks are leasehold subdivisions of low cost housing. The residents lease their land on a 30 to 90 year lease and own their house. Because of this these people cannot fix their home to site on a permanent basis. Typically these are more difficult to finance as a lender often can't take security of the leasehold land. There are guarantor & equity loans available from specialist lenders that can be used to finance manufactured homes.

Manufactured park home loans are now available from a few select lenders. If you are thinking of buying in a manufactured home park we suggest you read the useful information available on the Manufactured Housing Industry Association NSW website.

They are also sometimes used for purposes other then residential housing. It is not uncommon for them to be used for buildings at mines, cabins, holiday homes, offices, schools and also by the military.

However they are not to be confused with mobile homes. Mobile homes are often known as RVs or camper vans and are completely different to manufactured homes which are permanent structures that cannot be moved easily.

How do they compare to site-built homes?

So why do many people choose a manufactured home over normal construction? Below is a list of advantages you gain from building a factory built home.

1. Cheaper to build.

2. Faster to build, often in as few as 6 - 10 weeks.

3. Perfect for rural locations with few available tradespeople.

4. Not affected by bad weather during construction.

The disadvantages include:

1. Brick & other heavier building materials can't be used.

2. Some design limitations because the house needs to be transported to site on a truck.

3. They can be more difficult to finance. We recommend you contact a specialist for a manufactured home loan.