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This page is dedicated to folks who might be contemplating having a stick framed home built in place by removal of their mobile home by either selling or having it completely demolished. It’s good to know that others like yourself have done this. In fact a healthy percentage of “spot builders” receive business from folks like you.

If you have ever thought about replacing your existing mobile home, but thought that doing so at an affordable price was just a dream, think again!

Many folks throughout Washington State have discovered that replacing an existing mobile or manufactured home was easier than they thought. Additionally, all of the True Built Home clients that have recently replaced their mobile were able to obtain 100% financing - yes, you read that right. You many wonder just how that works...

If you have lived in and owned your property for more than one year, have a 660 credit score and have good debt to earning ratios, then you may also be eligible. After you order a True Built Home, the bank receiver a builder package with your blueprints, standard or upgraded selections. Your bank or lender will order an independent appraisal to determine the value of your finished home. When the value has been determined the bank will set up a loan with up to 90% of the appraised value.

Lets’ take a real world case.

True Built Home finished a 2004 square foot plan in February 2009 for a client that was replacing his single-wide on five acres. He owed approximately $125,000 on the land. Including his upgrades, the house he ordered came to about $130,000. He incurred a shy $20,000 in permits and site improvement costs including excavation, sidewalks, and driveway, and then sold the old mobile for $4,000. To make it all happen, he needed a total loan of less than $270,000.

However, the independent home appraisal forecast that the bank ordered was for $424,000!! That gave him almost $160,000 worth of walk-in-equity. The bank was able to lend this True Built Home client 80% of the appraisal or $339,000 for the project - way more than he actually needed, effectively giving him a 20% down payment.

Do you know another great thing about having at least 20% equity in a home? You are not required to carry Private Mortgage Insurance (PMI), which can save you another $100-200/month on you loan payment!

True Built Home has more than 30 plans that are ready to build including narrow lot plans – they have been pre-optimized to reduce labor and material costs, while offering comfortable and open living space. Why not select a plan, option and price out your home, and see what the buzz is all about? True Built Home has a showroom in beautiful Gig Harbor; please call or contact us to make an appointment to discuss a project you have in mind, inquire about seasonal or monthly promotions, and see in person some of the products we install in True Built homes.

So, as you can see, you might have your work cut out for you. But if it has been your desire to replace your mobile home by building an affordable home, then True Built Home is here for you.

We hope you, like some of your neighbors throughout Washington State, will take advantage of the opportunity available now - the beauty and functionality of a new True Built Home.

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Understand the History of the Mobile Home

As far back as the late 19th century in the United States, movable or mobile homes have been used. Back then, they were mobilized by teams of horses to transport homes to beach front properties along the Outer Banks of North Carolina. The mobile homes that used automobiles to drive the transportation became common in the late 1920s, primary for recreational travel, as automobiles became more ubiquitous. They were designed as “Travel Coaches” – homes away from home.

Mobiles homes truly came into vogue toward the end of WWII, as veterans returned home and affordable, easily accessible housing was in short supply. Mobile homes filled the need. The average length of trailers were 20 feet by 1943. By 1948, trailers were upwards of 30 feet with bathrooms. Units were often marketed as a practical alternative to renting an apartment. The baby boom began and American families were mobile to find work wherever available, inside the walls of a traveling home on wheels, often known as house trailers.

During the 1960s and 1970s, trailer homes were made longer and wider, making the mobility of the units more difficult. Most of us are more familiar with factory-built manufactured homes being moved to a location, usually kept there permanently. The mobility of the modern day counterpart has considerably decreased. In some states, mobile homes have been taxed as personal property if the wheels remain attached, but as real estate if the wheels are taken off.

In June of 1976, the United States Congress passed the National Manufactured Housing Construction and Safety Act (42 U.S.C.), which brought the manufacture of mobile homes to a higher standard. In 1980, Congress approved changing the term 'Mobile Home' to 'Manufactured Home'. Today, manufactured homes are one of many styles of prefabricated homes built in factories, rather than on site, and then taken to the location where they will be occupied. They are usually transported by tractor-trailers over public roads.

However, the tendency of the units of this era to depreciate rapidly in resale value made using them as collateral for loans much riskier than traditional home loans. Terms were usually limited to less than the thirty year term typical of the general home-loan market, and interest rates were considerably higher. In other words, home loans resembled motor vehicle loans more than traditional home mortgages.

In the United States, these homes are regulated by the U.S. Department of Housing and Urban Development (HUD), via the Federal National Mfd. Housing Construction and Safety Standards Act of 1974. It is this national regulation that has allowed many manufacturers to distribute nationwide, since they are immune to the jurisdiction of local building authorities. By contrast, producers of modular homes must abide by state and local building codes.

The popularity of the factory built homes caused complications the legal system was not prepared to handle. Originally, factory built homes were taxed as vehicles rather than real estate, which resulted in very low property tax rates. Eventually, local governments reclassified them for taxation purposes.

With these changes, rapid depreciation often resulted in the home occupants paying significantly less in property taxes than had been anticipated and budgeted. The ability to move many factory built homes quickly into a relatively small area resulted in strains to the public infrastructure and services of the affected areas, such as inadequate water pressure and sewage disposal, and highway congestion. This led communities to start placing limitations on the size and density of developments.

As noted above, early homes, even those that were well-maintained, tended to depreciate in value over time, much like motor vehicles, rather than appreciate in value, as with site-built homes. The arrival of these homes in an area tended to be regarded with alarm, in part because of the devuation of the existing properties in the community.

These factors have caused most cities and counties to place zoning regulations on the areas in which factory built homes are allowed, and limitations on the number and density of homes permitted in a given area. Other restrictions, such as minimum size requirements, limitations on exterior colors and finishes, and foundation mandates have also been enacted. Some jurisdictions will not allow factory built homes at all. Others have strongly limited or forbidden all single-wide models, which tend to depreciate in value more rapidly than the more contemporary double-wide versions. Single-wide units are still used as temporary housing in areas affected by natural disasters, when restrictions are temporarily waived, e.g. FEMA trailers after Hurrican Katrina.

Financing and insurance for manufactured homes can be very difficult. Most banks won’t finance a manufactured home purchase because if there is no land included in the loan. There are some companies that specialize in mobile home loans and mobile home financing. They can finance and refinance mobile homes that are in communities.

Newer homes, particularly double-wides, tend to be built to much higher standards than their predecessors and meet the building codes applicable to most areas. Value depreciation continues to be problematic, but not as much as it was in the past. Modulars resemble site-built homes, but they often still have very mild roof flopes so they can be easily transported under bridges. Zoning restrictions are still applicable, although litigation on the topic with regard to modern modular homes has raised some question regarding the real differences. Most modern modulars, once fully assembled, are indistinguishable from site-built homes. The kind of modulars we are talking about are those wherein the roofs are generally transported as separate units. In other cases, roofs can be raised during the setting process with cranes. Some modulars have two or three stories. As modular homes have come to resemble traditional stick-built homes, so have their prices.

If you would like to explore the quality, pricing, options, timing, and availability of building a stick built home with one of our home building experts, please contact us.

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