A manufactured home is a premade house designed and built in a factory, then later transferred to the owning party.
Manufactured housing initially was marketed towards people with busy lifestyles and those that liked to travel. After gaining popularity as a vacation or second home, many people began to realize that manufactured housing could provide an affordable alternative to traditional housing. Manufactured housing became a larger percentage of the overall housing ratio in the late 1950’s. Beginning in this period, manufactured homes began to be marketed to lower income income earners.
Manufactured housing can either be in a location permanently or be movable, depending on the type, size, and purpose of the housing. Original home models were 8 feet or less wide, however in the late 50’s larger sized homes became another option. The original, smaller models typically were meant for transport, while the larger and newer models were permanently attached to a permanent foundation. In the 60’s and 70’s larger manufactures houses gained notoriety, almost overtaking previous models immediately. This caused a huge shift in the manufactured housing. Because the homes were larger and more difficult to transport, the newer and larger homes were generally moved to a permanent location.
Mortgages lent on manufactured homes require the home to be at least 400 square feet and affixed to a permanent foundation. Loan terms for manufactured homes cannot exceed a 15-year mortgage term for single-width homes, and 20 years for a double width manufactured home.
Taxation of Manufactured Homes
Manufactured homes can be considered personal and real property. If the home is considered personal property, the home owner must pay a vehicle license fee. Under this scenario, the home’s title is registered with the department of housing and community development.
Qualification as Real Property
A manufactured home is considered real property if:
Owners obtains a building permit
The home is attached to the foundation of a solid standing foundation
The homeowner obtains a certificate of occupancy
Manufactured Home Sales
Manufactured homes built after 1989 are subject to be taxed on only 75% of the total value of the sold price. Additionally, owners of manufactured properties are responsible to pay property taxes to the state in which the vehicle is primarily located. Sales of used manufactured property are not subject to sales tax, although the owner must still pay property taxes.
Agents must be licensed with a seller’s permit to sell manufactured homes as a retailer and must pay the necessary use or sales tax.
