DEFINITION of 'Manufactured Housing - MH'

A housing unit constructed primarily off-site prior to being moved to a piece of property where it is set. The cost of construction per square foot is usually considerably less for manufactured housing than for traditional on-site homes (stick-built homes). In the 1990s, this style of housing accounted for nearly 25% of new home sales for families in the United States.

This type of housing also includes "modular homes" - homes divided into multiple sections that are constructed off-site, then assembled like building blocks at the property.

BREAKING DOWN 'Manufactured Housing - MH'

Financing a manufactured home can be different than financing a stick-built home. If the manufactured home is purchased separately from the land on which it will sit, a personal property loan is the most common type of financing. Personal property loans carry a higher interest rate than traditional mortgages. If the manufactured home and the land are purchased together, a traditional mortgage might be available. Loan terms and programs vary from lender to lender. The Federal Housing Administration and Department of Veterans Affairs have manufactured-housing loan programs.

RELATED TERMS
  1. Construction Loan

    A short-term loan used to finance the building of a home or another ...
  2. Combination Loan

    1. A transaction consisting of two separate loans for the same ...
  3. Construction Mortgage

    A loan borrowed to finance the construction of a home and typically ...
  4. Housing Starts

    The number of new residential construction projects that have ...
  5. Home Debtor

    An individual who holds a large mortgage with little or no equity ...
  6. Federal Home Loan Bank Act

    An act passed by the Hoover administration in 1932 that was designed ...
Related Articles
  1. Personal Finance

    Can You Get a Mortgage on a Mobile Home?

    You can get a loan for a mobile home, but it may not be a mortgage. These are the choices for funding manufactured housing.
  2. Personal Finance

    Getting A Mortgage When Building Your Own Home

    It's much harder to get a loan when you're building a home, not moving into one. Here's where to look and what to expect.
  3. Personal Finance

    Mortgage for a Manufactured Home? Try the FHA

    FHA loans are often a good alternative for those who have trouble obtaining a conventional mortgage, although you do have to pay an insurance premium.
  4. Investing

    8 Signs Of A Real Estate Rebound

    Wondering when prices will start to turn around in your area? We'll show you how to get in the know.
  5. Investing

    How To Afford A Second Home

    Saving enough to buy a vacation home involves some unique considerations including a big down payment and more lending hurdles.
  6. Investing

    Buying A Home: New Or Previously Owned?

    Brand-new homes have distinct advantages - and drawbacks. Find out what you need to know to make an informed decision.
  7. Managing Wealth

    Buying a House Before Selling Your Own: Risks and Considerations

    Learn more about the financial risks and worst case scenarios associated with buying a home before selling your current residence.
  8. Investing

    10 Tips for Getting a Fair Price on a Home

    When the housing market booms, it's tougher than ever to get a good price. Make sure the house you choose is worth the price you pay.
  9. Investing

    Purchasing a Home Without a Realtor: What You Need to Know

    When purchasing a home, you can save money by performing the realtor work yourself, but it will take time and effort.
  10. Investing

    6 Signs It's Time To Buy A House

    Are you ready to buy a home? Find out if it's the right time for you to enter the real estate market.
RELATED FAQS
  1. How do construction loans work?

    Construction loans are obtained either by the prospective home owner or the actual builder. There are two types of construction ... Read Answer >>
Hot Definitions
  1. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  2. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  3. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  4. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
  5. Porter Diamond

    A model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to ...
  6. Oligopoly

    A market structure in which a small number of firms has the large majority of market share. An oligopoly is similar to a ...
Trading Center