Manufactured Housing 

Construction Guide

© 2021 Fannie Mae

MH Advantage®-eligible subdivisions
© 2021 Fannie Mae Manufactured Housing Construction Guide | 2

Contents

1. Introduction 4

2. The MH Advantage Program 6

2.1. What is a modern manufactured home? 6

2.2. What is MH Advantage? 6

3. Manufactured Homes and the Residential Housing Market 8

3.1. The residential housing market crisis 8

3.1.1. Insufficient supply and rising home prices 8

3.1.2. The affordability gap: home prices and income 9

3.1.3. Affordability and consumer demand 9

3.2. Creative solution to address the nation’s housing needs 10

3.3. Opportunity presented by manufactured homes 11

4. Advantages to Constructing Developments

with MH Advantage-Eligible Homes 13

4.1. Cost- and time-effective construction 13

4.2. Sustainability 14

4.3. Safety compared to site-built construction 14

4.4. Suitability for subdivisions 14

5. MH Advantage Eligibility Requirements 15

5.1. Home requirements 15

5.2. Foundation requirements 16

5.3. Site requirements 16

5.4. MH Advantage appraisal and sticker 16

6. Planning an MH Advantage Community 18

6.1. Site selection and preparation 18

6.1.1. Evaluating land and site suitability 18

6.1.2. Site preparation 19

6.2. Procurement 19

6.3. Manufacturing 20

6.4. Delivery 21

6.5. Foundations 22

6.6. Installation 22

6.7. Inspections 24

6.8. Selling homes to aspiring homebuyers 24
© 2021 Fannie Mae Manufactured Housing Construction Guide | 3

7. Challenges to Constructing Developments

with MH Advantage-Eligible Homes 25

7.1. Perception of manufactured homes 25

7.1.1. Quality and appearance 25

7.1.2. Zoning 25

7.2. Appraisals 27

8. Subdivisions in Progress 28

8.1. MH Advantage-eligible homes in a fast-growing market 28

8.2. High-quality manufactured housing to meet growing demand 30

8.3. An innovative solution to address the affordable housing shortage 32

8.4. Adapting business models to bring affordable housing to scale 34

8.5. Kilpatrick Woods — workforce housing in the northeast 36

9. Conclusion 38

Appendices 39

A1. Manufactured home oversight and regulations 39

A1.1. Design approval 39

A1.2. In-plant quality assurance and third-party inspections 39

A1.3. Installation 39

A1.4. Site-built structures 40

A1.5. Code and standard updates 40

A2. Additional resources 41

Fannie Mae 41

U.S. Department of Housing and Urban Development (HUD) 41

Glossary 42

G1. Types of housing 42

G2. Manufactured home terminology 43

Publication Bibliography 48

Contents

While every effort has been made to ensure the reliability of the content in this publication, 

Fannie Mae’s Selling and Servicing Guides and their updates, including Guide Announcements and 

Release Notes, are the official statements of Fannie Mae’s policies and procedures and should be 

adhered to in the event of discrepancies between information in this publication and the Guides.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 4

More than 22 million people in the U.S. currently 

live in manufactured homes.1 While the high 

cost of residential construction is a major 

contributor to the nation’s housing supply 

crisis, high-quality manufactured housing is 

paving the way for these homes to become a 

real solution within suburban communities. 

Improvements made to their quality, safety, 

and appearance, combined with a strong 

secondary mortgage market for manufactured 

housing, make manufactured homes a solution 

for mitigating the housing shortage in markets 

across the country. As federal, state, and local 

governments look to reevaluate their real 

estate development procedures with an eye 

toward affordability, the low cost and high 

quality of today’s manufactured homes are 

likely to prompt greater market acceptance 

while also giving builders, lenders, and buyers 

access to a home product that is readily 

available and designed to blend into markets 

across the country.

1. Introduction 

Fannie Mae has collaborated with leading manufactured 

housing industry stakeholders to create an option for 

suburban communities with the MH Advantage® program.2

The program is an innovative homeownership option that 

pairs affordable mortgage financing with specially designed 

manufactured housing. MH Advantage-qualified homes 

have features and aesthetics comparable to site-built 

homes. These attributes help deliver business growth for 

homebuilders and developers while offering homebuyers a 

new affordable path to homeownership. 

This toolkit serves as a starting point for developing real 

estate projects with manufactured housing by:

• Providing an overview of the manufacturing 

process.

• Outlining each step in the planning and the 

construction of MH Advantage-eligible subdivisions.

• Explaining the regulations that govern manufactured 

housing.

• Providing essential resources for lenders, 

developers, and other stakeholders.

The information provided by this toolkit will help builders 

and developers target prospective building sites, expedite 

projects while reducing costs, and mitigate the challenges 

unique to manufactured housing.

1 2021 Manufactured Housing Facts: Industry Overview (MHI, 2021).

2 MH Advantage is a registered trademark owned by Fannie Mae.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 5

About Fannie Mae

Fannie Mae supports mortgage lenders who provide 

mortgage financing to help people buy, refinance, or rent a 

home. Our secondary market loan purchase program helps 

make products such as the 30-year, fixed-rate mortgage 

possible. It provides homeowners with predictable 

mortgage payments over the life of the loan. Our efforts 

offer liquidity, stability, and affordability to the singlefamily and multifamily markets in a disciplined fashion 

while maintaining credit standards and minimizing losses.

About National Institute 

of Building Sciences

The U.S. Congress established the National Institute of 

Building Sciences (NIBS) in 1974 to bring the public and 

private sectors together, address building science and 

technology-related issues, and improve the safety and 

performance of buildings. Today, NIBS continues to provide 

the opportunity for free and open discussion of issues 

and problems where conflict and misunderstanding have 

occurred. It continues to assemble federal, state, and local 

government agencies and representatives of the private 

sector for open working sessions that seek a consensus 

solution to problems of mutual concern. NIBS also works 

with federal agencies on projects related to the built 

environment to help achieve national goals. Headquartered 

in Washington, D.C., NIBS’ professional staff provides 

technical, managerial, and administrative support for 

the Institute’s programs. 

About ICC NTA

ICC NTA is a member of the International Code Council (ICC) 

family of solutions. As an accredited third-party agency, NTA 

provides code evaluation, product certification, inspection, 

engineering, plan review, and testing services, as well as 

independent quality and standards compliance verification 

for building product manufacturers. NTA serves residential 

and commercial builders, code officials, manufacturers, 

and suppliers throughout the building industry.

Acknowledgments

Fannie Mae acknowledges the contribution of NIBS to this 

document as well as the subject matter expertise provided 

by ICC NTA.

NIBS staff:

Drew Rouland, PMP, CSM, National Institute of 

Building Sciences

Kyle Barry, PMP, National Institute of Building Sciences

Jiqui (JQ) Yuan, P.E., PhD, PMP, National Institute 

of Building Sciences

Stephanie Stubbs, Assoc. AIA, PMP, National Institute 

of Building Sciences

ICC NTA subject matter experts:

Eric Tompos, P.E., S.E., C.B.O, ICC NTA, LLC

Amanda Vavrina, ICC NTA, LLC

Independent subject matter experts

Michael Blanford, U.S. Department of Housing 

and Urban Development

Lesli Gooch and Mark Bowersox, Manufactured 

Housing Institute

Jayar Daily, American Homestar Corporation
© 2021 Fannie Mae Manufactured Housing Construction Guide | 6

2. The MH Advantage Program 

and environmentally friendly. Furthermore, modern multisection manufactured homes provide increased living space 

and a footprint and proportions similar to site-built homes. 

The features of today’s manufactured homes appeal to a 

broad range of homebuyers, which supports a more diverse 

buyer demographic. The appeal of modern designs and 

materials combined with various financing options have 

opened new markets to manufactured housing.

2.2. What is MH Advantage?

MH Advantage is a mortgage option from Fannie Mae 

that offers affordable, low down payment financing 

for manufactured homes that blend seamlessly into 

neighborhoods. MH Advantage-eligible homes are 

designed with higher-pitched rooflines, larger eaves, 

and lower-profile foundations not traditionally found in 

standard manufactured homes. Additional features include 

attractive, durable siding materials, roof dormers, covered 

porches, garages, and carports. Interior finishes are similar 

to those seen in new, site-built homes, including kitchen 

cabinets with fronts of solid wood or veneered wood, 

drywall rather than vinyl panels, and higher-end materials 

for counters, sinks, and tubs. 

2.1. What is a modern manufactured home?

A manufactured home is a home built entirely in a factory 

on a permanent chassis, transported to a building site, 

and placed on a foundation. Often referred to as “HUD 

Code” homes, manufactured homes are the only type 

of housing designed, built, and installed under federal 

building code. Since 1976, the U.S. Department of Housing 

and Urban Development (HUD) has established, published, 

and updated the standards for manufactured home 

design, construction, and installation and set performance 

standards for the heating, air-conditioning, plumbing, 

and electrical systems. These standards ensure 

manufactured homes’ quality, durability, safety, 

transportability, and energy efficiency. No manufactured 

home can ship from a factory unless it is in line with the 

HUD Code and carries a certification label from 

an independent, third-party inspector. 

As the standards for design, construction, and installation 

of manufactured homes evolved, so have the construction 

materials and methods. These have improved the 

interior and exterior appearance of a new generation 

of manufactured homes, breaking barriers to market 

acceptance in certain market segments. Changes in 

technology and manufacturing processes have also made 

manufactured homes more energy efficient 
© 2021 Fannie Mae Manufactured Housing Construction Guide | 7

MH Advantage financing expands access to homeownership. 

It offers conventional financing terms traditionally reserved 

for site-built homes, including down payments as low 

as 3% and mortgage insurance coverage similar to sitebuilt homes. 

Homebuilders and developers who decide to use MH 

Advantage-eligible homes can offer potential homebuyers 

an attainable price point without compromising on quality 

of aesthetics — meeting a need that is missing in the 

market today. Since manufactured homes are built in a 

controlled environment, weather delays and material or 

labor shortages are less likely to impact the construction 

time. These homes can get to market faster and at lower 

costs, which allows homebuilders and developers to meet 

the growing demand for housing while sustaining 

or increasing their profit margins. 

Figure 2: MH Advantage financing expands access to homeownership

Faster speed 

to market

High-quality 

features

Attractive 

financing Cost savings

Steep-pitch roofs and 

low-profile foundations 

allow homes to 

blend into site-built 

neighborhood.

Homes are constructed 

with drywall and wooden 

cabinetry.

Homes are built with 

energy-efficient 

features.

Borrowers can even 

customize the home 

with sought-after features 

similar to site-built 

homes.

Homebuyers are offered 

an affordable path to 

homeownership.

Down payments are as 

low as 3%.

Homebuyers are offered 

reduced mortgage 

insurance.

Interest rates are

comparable to those 

for site-built homes.

Increased sales velocity 

from faster home 

delivery provides 

substantial cost savings 

for homebuilders and 

developers.

Increased profit 

margins offset higher 

land costs.

Construction time is 

reduced, meaning faster 

production schedules 

and less inventory.

Homes are built off-site 

in climate-controlled 

factories, reducing 

weather delays.

Homes are then 

transported to the home 

site for final installation.

Dormers and 

covered porches Carports, garages,

and driveways

Open floorplans High-quality 

exterior siding

Energy efficient Modern cabinetry

and fixtures

Figure 1: Features of MH Advantage-eligible homes
© 2021 Fannie Mae Manufactured Housing Construction Guide | 8

3. Manufactured Homes and the 

Residential Housing Market

3.1. The residential housing market crisis

3.1.1. Insufficient supply and rising home prices

The supply of homes for sale has not kept up with 

demand for over a decade, and the supply of new home 

construction in particular has faced constraints. Research 

from the Joint Center for Housing Studies of Harvard 

University shows that housing construction has barely kept 

pace with household growth for almost eight years, an 

unprecedented amount of time for the U.S.























1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Household Growth Completions and Placements of New Units

Notes: Household growth estimates are based on three-year trailing averages. Placements refer to newly built mobile homes placed for residential use.

Source: JCHS tabulations of U.S. Census Bureau, Housing Vacancy Surveys, and New Residential Construction data.

Units (Millions)

Figure 3: Housing construction has barely kept pace with household growth for an unprecedented eight years 

(The State of the Nation's Housing, 2019)

Figure 3: Housing construction has barely kept pace with household growth for an unprecedented 

eight years (The State of the Nation’s Housing 2019)
© 2021 Fannie Mae Manufactured Housing Construction Guide | 9

In 2020, this gap widened with fewer newly constructed 

and existing homes on the market than in previous years. 

In fact, September 2020 represented a 25-year-low for the 

number of new homes on the market. The constrained 

supply of available houses is compounded by the lack 

of affordability. While insufficient inventory occurs at 

all price points, the gap between supply and demand is 

widest at lower price points. This gap leaves millennials 

and Generation Z consumers, who are reaching prime 

homebuying age, with severely reduced inventory of 

affordable entry-level housing (Figure 4).

The Federal Housing Finance Agency (FHFA) price index 

estimated that U.S. home values are 36% above the peak 

set in 2007 during the housing bubble.3 In addition, home 

prices are not only increasing but also rising at a faster 

rate each year. Intense competition for the limited stock 

of homes combined with mortgage rates at record lows 

contributed to prices increasing at a higher rate in 2020 

than in 2019. Q3 2020 and Q4 2020 home prices rose at a 

remarkable 11.7% and 11.3%, respectively, compared to 

the same quarters of 2019. 

3.1.2. The affordability gap: home prices and income

The gap between home prices and household income 

is a critical factor in the housing crisis, and house prices 

continue to outpace incomes. In 2019, the average home 

cost was 4.3 times more than the median annual income, 

well above levels that prevailed in previous decades.4

According to the Joint Center for Housing Studies of 

Harvard University report The State of the Nation’s Housing 

2020, the median sales price of existing single-family homes 

in 2019 rose faster than the median household income 

for the eighth straight year. The median sales price is 

quadruple the amount of the median household income 

for the fourth consecutive time in 2019. 

Persistent high housing costs relative to income have led 

to increasing numbers of households spending 30% or 

more of their income on housing, which HUD defines as 

“housing cost-burdened” households. In 2019, 37.1 million 

households, nearly a third of all households nationwide, 

were housing cost-burdened, demonstrating persistent 

unaffordability in the homeownership market.

3.1.3. Affordability and consumer demand

The low level of affordable inventory will continue to fuel 

strong demand for new housing in the years to come. 

And, although the national homeownership rate climbed 

to 65.8% at the start of 2020, the homeownership rate 

among consumers 35 years old and younger — including 

younger millennials and Generation Z, who are largely 

within their prime homebuying years — remains well below 

expectations at 38.5%.5

National Housing Inventory

Housing Inventory, <75% Median Price

Supply and Demand: Out of Sync



2011 2012 2013 2014 2015 2016 2017



















National Home Price Index

Home Price Index, <75% Median Price

Home purchase prices and available housing inventory have 

diverged since 2010, and the gap worsens at the more affordable 

end of the market.

Source: CoreLogic and Fannie Mae

Figure 4: Home prices and availability 

(2018 Annual Housing Activities Report 

and Annual Mortgage Report, Fannie Mae)

3 House Price Index (FHFA, 2021). 

4 Joint Center for Housing Studies of Harvard University 2020.

5 Quarterly Residential Vacancies and Homeownership (Census, Q2 2021).
© 2021 Fannie Mae Manufactured Housing Construction Guide | 10

A one-size-fits-all answer will not resolve the lack of 

affordable housing. Baby boomers likely will continue to 

downsize, and recent studies have shown that many of 

these homes do not match the needs, desires, and budget 

of younger buyers. Between 2018 and 2023, Fannie Mae 

expects a rise of 7% in those who are single and 6% in 

increase in those who are married with no children. These 

changes in household demographics have prompted 

many homebuilders to rethink their business models to 

meet these changes and local governments to reconsider 

their approach. Some common approaches include the 

construction of smaller homes as well as higher-density 

options, like multi-unit properties and townhouses. 

Even with low inventory, homebuilders and developers 

should know that today’s borrowers are still seeking 

out homes that are built sustainably and with modern 

amenities.6 When affordability is within reach, today’s 

homebuyers are increasingly expressing a willingness to 

choose a smaller home while also preferring that the home 

includes desirable amenities.7 This has opened the door 

for residential construction that can be built to meet these 

preferences while still maintaining a low purchase price.

3.2. Creative solution to address the 

nation’s housing needs

Today’s manufactured homes can help ease the nation’s 

affordable housing shortage, address borrowers’ evolving 

needs, and provide a growing business opportunity for the 

homebuilding industry. Manufactured homes currently 

represent approximately 9% of new home purchases.8 With 

a variety of architectural styles and configurations, these 

homes are suitable for subdivision development in addition 

to scattered and infill lot development. 

A recent study determined that the combined cost for site 

preparation and construction, delivery, and installation 

of a new MH Advantage-qualified home ranges between 

$70 and $120 per square foot,9 depending on the market. 

In areas where the hard costs for construction of site-built 

homes are above that threshold, MH Advantage-eligible 

homes can generate substantial savings for homebuilders 

and developers. These cost reductions result in noticeable 

savings for people buying MH Advantage-eligible homes 

in the area.

6 The Top Four Ways Millennials Are Changing the Housing Market 

(CareLogic, 2021).

7 Millennial Home Buying Preferences (HousingEconomics.com, 2019).

8 2021 Manufactured Housing Facts: Industry Overview (MHI, 2021).

9 Data analysis is based on Zonda (formerly known as MetroStudy and 

Meyers Research), research data published in August 2020, and FHFA Area 

Median Income data.

Manufactured housing

~$45 per square foot

Sales tax

Generally 35% to 65% of 

sale price x local sales tax

Delivery charge

~$15 per mile 

or about $2,500

Foundation

~$19,000

Garage construction

~$24,000

Installation cost

~$1,500

Setup costs

~$5,000

Total hard costs

~$72 per square foot

~$72 Hard Costs — Breakeven Point

Site-specific factors that are resulting in these hard costs

Entry-level, single-family home, 1,800 square foot: base price of roughly $250,000

Figure 5: Calculating the total hard costs of MH Advantage-eligible homes
© 2021 Fannie Mae Manufactured Housing Construction Guide | 11

In areas of the country where the average household 

cannot afford a new home or even an existing home at 

current prices, modern manufactured homes can become 

a high-quality and attainable solution.

3.3. Opportunity presented by 

manufactured homes

In collaboration with Zonda (formerly known as MetroStudy 

and Meyers Research), Fannie Mae completed an 

initial market assessment in August 2020 as part of the 

development of this toolkit. The assessment identified 

geographic markets where the demand for entry-level, 

affordable housing would be highest. The study then 

reconciled this “demand-side” analysis with an assessment 

of the estimated costs of materials for both MH Advantageeligible manufactured homes and site-built homes of 

comparable sizes. 

The results revealed that some markets across the country 

may provide homebuilders and developers with a readymade customer base for MH Advantage-eligible homes. 

Markets presenting the greatest opportunities were largely 

concentrated in high-cost regions in California and along 

the Pacific Northwest (identified in blue in the map below).

Homebuilders and developers may also consider MH 

Advantage as a creative solution to meeting newfound 

demand in nontraditional geographic markets, such as 

markets offering lower cost-of-living arrangements just 

outside of major urban areas. These areas may offer 

additional flexibilities due to streamlined building codes or 

more permissive zoning requirements. Many of these less 

urban locations are seeing heightened demand for housing, 

as these nontraditional markets are increasingly providing 

access to jobs, community infrastructure, and recreational 

activities. Recent research indicates that consumers are 

indeed reconsidering the advantage of a suburban lifestyle, 

Figure 6: Overall market opportunities (gray) and markets with an assumed cost advantage for 

MH Advantage-eligible properties when compared to site-built construction (blue) 
© 2021 Fannie Mae Manufactured Housing Construction Guide | 12

especially in light of the increasing prevalence of remote 

work environments due to the COVID-19 pandemic. As 

more flexible work arrangements continue to grow and 

more consumers pursue affordable housing options in 

nontraditional real estate markets, builders and developers 

can look to creative housing options that accommodate 

these trends.10

As described later in Section 6 of this report, to ensure the 

local housing market can support a development using MH 

Advantage-qualified homes, homebuilders and developers 

should perform analyses of local market trends and 

consumer sentiment and behavior before choosing such 

a product for their next development project. 

Bend, OR

Bridgeport, CT

Chicago, IL

Chico, CA

Columbus, OH

Eureka, CA

Fresno, CA

Grants Pass, OR

Inland Empire, CA

Las Vegas, NV

Minneapolis, MN

Sacramento, CA

Salem, OR

Salinas, CA

San Diego, CA

Santa Rosa, CA

St. George, UT

St. Louis, MO

Stockton, CA

Ukiah, CA

Vallejo, CA

Washington, D.C.

Top Opportunity Markets

(based on cost, sorted alphabetically)

Figure 7: Sampling of markets with assumed 

cost advantage for MH Advantageeligible homes 

10 Millennials Embrace Suburban Homeownership (Realtor.com, 2021).
© 2021 Fannie Mae Manufactured Housing Construction Guide | 13

4. Advantages to Constructing Developments 

with MH Advantage-Eligible Homes

According to the consumer-based research performed 

by Fannie Mae,11 the architectural and aesthetic features 

of MH Advantage-eligible homes make them nearly 

indistinguishable from site-built residences. They include 

distinctive roof treatments (eaves and higher-pitched 

rooflines), lower-profile foundations, durable siding 

materials, and additional structures like garages, carports, 

and porches. In fact, according to the Joint Center for 

Housing Studies of Harvard University, the quality and 

finish of modern high-end manufactured homes are 

equivalent to that of site-built homes. Additionally, 

according to HUD, “the factory-built housing industry 

is constantly evolving to meet the changing needs of its 

customers,” including innovations in disaster resilience, 

energy efficiency, and performance.12

4.1. Cost- and time-effective construction

Today’s manufactured housing has the potential to generate 

significant time and cost savings during construction. 

Efficiencies in the factory manufacturing process drive both, 

which can translate into tangible gains for homebuilders 

and developers. Cost savings may result from a variety of 

factors, such as economies of scale that can significantly 

drive down the unit costs of even smaller projects.

11 Fannie Mae on how to make housing more affordable (HousingWire, 2021).

12 Evidence Matters (HUD, Winter/Spring 2020).

13 Affordable Manufactured Housing Best Practices: Opportunities for 

California Affordable Housing Developers (California Coalition for Rural 

Housing, 2010).

A study conducted by the California 

Coalition for Rural Housing found 

that developers realize cost savings 

by purchasing manufactured homes 

out of a larger mass production 

run of similar units, capitalizing on 

the benefit of bulk purchasing of 

materials, assembly line efficiencies, 

and production standardization. The 

manufacturers in these projects were 

able to work within a collaborative 

design-build modality in which 

housing units were customized to 

meet a variety of project specifications, 

needs, and constraints. These 

manufacturers collaborated with 

developers to create project-specific 

processes in areas like unit design, 

production scheduling, change orders, 

quality control, and the installation of 

finished housing units.13

Factory-built housing can result in time savings, which 

may translate into cost savings for homebuilders and 

developers. Weather delays, damage, and loss or theft of 

construction materials on-site all can impact costs of site-
© 2021 Fannie Mae Manufactured Housing Construction Guide | 14

built homes. Manufactured homes’ streamlined production 

in a climate-controlled factory may eliminate these issues 

and their associated costs. While no construction project is 

free from these variables, the use of modern manufactured 

housing can reduce or even remove many of the factors 

that cause delays in completing conventional construction 

projects. This has the potential to increase the number 

of sales and lessen any carrying costs associated with 

financing the acquisition and development of the land. 

4.2. Sustainability

When compared to site-built homes, today’s manufactured 

homes offer a variety of environmentally friendly features. 

Unlike with on-site construction, in manufactured home 

production, building materials are stored indoors, which 

prevents losses from sun fading, water damage, or material 

theft. The National Association of Home Builders estimates 

that conventional homebuilders produce close to 8,000 

pounds of waste for a 2,000 square-foot site-built home. 

Conversely, the waste generated at manufactured home 

factories is often recycled or reused on-site. The precision 

of the manufacturing process also reduces waste, and the 

production process optimizes the use of smaller material 

cut-offs that may otherwise be discarded.14

In many markets, manufactured home producers also offer 

the advantage of energy efficiency packages that exceed 

the minimum standards required for MH Advantage-eligible 

homes. For example, the Northwest Energy-Efficient 

Manufactured Housing Program developed energy 

efficiency standards and has certified the energy efficiency 

of over 240,000 manufactured homes since its inception. 

These energy efficiencies have the potential to add longterm value to the home, which can be a consumer benefit 

recognized at resale. 

4.3. Safety compared to site-built 

construction

Modern manufactured homes are built to federal 

building standards (HUD Code), regulating all aspects of 

performance, including wind resistance. Because today’s 

manufactured homes are built to a federal construction 

and safety standard, these homes are required to meet 

minimum federal requirements for safety and durability. 

Initially adopted in 1976, HUD Code continues to evolve 

the safety and durability requirements for manufactured 

homes. In 2007, the federal government established 

standards requiring all new manufactured homes to meet 

minimum requirements for installation and anchoring 

in accordance with the home’s structural design and 

wind zones in the location where the home is installed. 

Additionally, per HUD, “the HUD Code has mandated 

changes that make modern manufactured homes 

significantly more resilient to fire and natural disasters 

than pre-HUD Code housing.”15 States have the authority 

to establish additional installation standards, but any 

standards the states impose must exceed the minimum 

federal standards. 

4.4. Suitability for subdivisions

More manufactured housing producers are investing in 

the growing market opportunity resulting from the use 

of manufactured homes in larger real estate settings. 

In recent years, leading manufacturers created and 

marketed specific brands designed to attract a segment of 

homebuyers who may not have considered a manufactured 

home in the past. Recognizing the distinct needs of 

homebuilders and developers, many manufacturers are 

organizing dedicated teams of sales and support staff to 

support real estate development projects from ideation 

to execution. Categories of homes and brands that have 

achieved the most market recognition to date include the 

CrossModTM and Genesis HomesTM16 as a response to Fannie 

Mae’s creation of the MH Advantage loan product. 

With an eye toward supporting real estate developments, 

manufacturers may be open to negotiating with 

homebuilders and developers on several areas related to 

home construction, including:

• Final specifications of unit. 

• Purchase price of units and delivery dates.

• Payment terms and invoicing systems.

• Shipping and installation.

• Additional quality control measures.

14 Going Green: Manufactured Homes are the Original Eco-Friendly Housing 

(Hames, 2018).

15 Evidence Matters (HUD, Winter/Spring 2020).

16 CrossMod is a registered trademark owned by the Manufactured Housing 

Institute. Genesis Homes is a registered trademark owned by the Skyline 

Champion Corporation.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 15

5. MH Advantage Eligibility Requirements

To be eligible for the MH Advantage financing program, 

manufactured homes must meet the criteria outlined below. 

5.1. Home requirements

In order to qualify for MH Advantage financing, an eligible 

home must be built by a manufacturer who has entered 

into an agreement with Fannie Mae to participate in the MH 

Advantage program. MH Advantage-eligible homes must 

meet the following criteria:

• The design of the home must be a multi-section 

property (i.e., no single-wide homes). 

• Exterior siding must comprise one or more of the 

following: fiber cement board, hardwood siding, 

engineered wood siding, masonry, stone, stucco, or 

vinyl siding backed with oriented strand board.

• Eaves must be six inches or greater. (Eaves no 

smaller than four inches are acceptable if combined 

with site-completed gutters that are at least two 

inches wide.)

• Roof must have a pitch of 4/12 or greater. (Note: 

Homes with more than two sections may have any 

roof pitch.)

• Features must include one of the following pairs: 

° Dormer(s) and covered porch (minimum 

72 square feet); or, 

° Dormer(s) and attached garage/carport; or, 

° Covered porch (minimum 72 square feet) and 

attached garage/carport. 

• Homes must be designed with a low-profile 

finished floor set that does not exceed 30 inches 

from the bottom of the floor joist to the exterior 

grade for either the front or other entry elevation. 

(Note: This is a design standard only. The topography 

of the site or other considerations may affect 

the actual placement of the home on-site, 

and it does not disqualify the home from the 

MH Advantage program.)

• Homes must meet one of three energy standards: 

° Overall U-value of 0.076 or less; or, 

° 2009 International Energy Conservation Code; or,

° ENERGY STAR®.

(Note: A manufacturer may seek Fannie Mae’s 

prior approval of alternative specifications if it can 

demonstrate the specifications meet or exceed one 

of these three energy standards.)
© 2021 Fannie Mae Manufactured Housing Construction Guide | 16

• The interior must have all features listed below:

°Drywall (tape and texture) throughout the home, 

including closets. (Note: Materials like ceramic 

tiles, shiplap, or other decorative wall treatments 

may be applied over the drywall.)

° Kitchen and bath cabinets with fronts of solid 

wood or veneered wood.

°Bathroom features that include fiberglass, solid 

surface, acrylic, composite, porcelain/enamelcoated steel, or tile for all showers and/or tubs 

in the home.

5.2. Foundation requirements

To be eligible for the MH Advantage financing program, 

a manufactured home’s design must accommodate a 

foundation that meets all the following criteria: 

• Has a masonry perimeter wall (concrete block and/

or brick).

• Is consistent with HUD’s Permanent Foundations 

Guide for Manufactured Housing.

• Has an engineered foundation certified by a 

registered architect or professional engineer.

5.3. Site requirements

Builders are responsible for the required on-site features 

listed below: 

• A driveway that leads to the home (or to the garage 

or carport, if one is present) and that consists of 

blacktop, pavers, bricks, concrete, cement, or 

gravel. (Note: Gravel must have a minimum depth 

of 4 inches.) If the home does not have a garage or 

carport, the driveway can lead to a parking pad.

• A sidewalk that connects the driveway, a detached 

garage, or carport to a door or attached porch of 

the home. The sidewalk must consist of blacktop, 

pavers, flagstone, bricks, concrete, or cement.

5.4. MH Advantage appraisal and sticker

An important selling point for homebuilders and 

developers is that the MH Advantage sticker allows the 

home to qualify for MH Advantage financing not only at the 

initial point of sale but also at resale. Even if MH Advantage 

financing is not used in the original house purchase, the 

MH Advantage sticker means that when a buyer is ready to 

sell, that home is still eligible for the program’s affordable 

financing in a future mortgage transaction.

The same general appraisal requirements for new 

subdivisions apply to MH Advantage appraisals. The 

appraiser must select one comparable sale from the 

subject subdivision or project and one comparable sale 

from outside the subject subdivision or project. The third 

comparable sale can be from within or outside of the 

subject subdivision or project as long as the comparable 

sale is a good indicator of value for the subject property. 

Two of the sales must be verifiable from reliable data 

sources, separate from the builder.

Figure 8: MH Advantage sticker
© 2021 Fannie Mae Manufactured Housing Construction Guide | 17

Standard valuation requirements for manufactured homes 

apply, including:

• Selling Guide, B4-1.3-05, Improvements Section of 

the Appraisal Report

• Selling Guide, B4-1.3-10, Cost and Income Approach 

to Value

• Selling Guide, B4-1.3-10, Cost and Income Approach 

to Value

The Manufactured Home Appraisal Report (1004C) or 

Appraisal Completion Report (1004D) must include 

photographs of the HUD Data Plate, HUD Certification 

Label, and MH Advantage sticker, as well as photographs 

showing the driveway, sidewalk(s), detached structures 

located on the site, the external front and rear of the home, 

and the interior of the home. For purchase transactions 

of new manufactured homes, the appraiser must analyze 

the sales contract and manufacturer’s or retailer’s invoice, 

provide a summary in the appraisal report, and complete 

the cost approach. Resources for lenders and appraisers

are available on Fannie Mae’s website.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 18

6. Planning an MH Advantage Community

The keys to success for manufactured housing projects 

are thorough preconstruction research and continued 

coordination and communication between the 

homebuilder, manufacturer, and installer. The pace of 

factory-built construction leaves little room for error, 

and early decision-making and coordination are essential 

for things that can be decided much later in the process in 

a traditional site-built project. In the construction phase, 

some site-built construction management duties will be the 

responsibility of the manufacturer, but other construction 

management tasks will need strict oversight. Builders 

should maintain stringent control of the timeline during site 

preparation to prevent delaying the home’s installation and 

to ensure the project stays on schedule. Careful delineation 

of scope for all parties and consistent communication 

between the factory and builder is absolutely critical in 

ensuring a successful project and for realizing any schedule 

or cost benefits from manufactured housing projects. 

Early and consistent coordination is key. 

6.1. Site selection and preparation

6.1.1. Evaluating land and site suitability 

A land feasibility study is a critical part of determining 

whether a proposed project is financially and physically 

possible. These studies generally involve input from 

contractors, an engineering team, an architect, and 

possibly a city planner. They include soil testing, slope 

determination, and potential environmental impacts and/

or limitations due to protected habitats or species. In 

addition, the land feasibility study will inform the developer 

of local zoning rules and building codes, roads or utilities 

that are necessary for the property, and if any proposed 

construction in the area could impact the site. 

A market analysis will yield information on affordability 

levels for prospective buyers, house sizes, basic design, 

and desired amenities. Armed with a clear project goal and 

requirements for the housing units, the developer 

can begin the procurement.

In many ways, site assessment for manufactured homes 

is no different than it is for site-built home construction. 

Activities like reviewing zoning requirements and the 

availability of utilities, conducting soil tests, evaluating 

drainage issues, and performing environmental impact 

assessments are standard for both types of construction. 

When evaluating for the placement of manufactured 

homes, builders should assess some additional criteria:

• Soil conditions: Soil quality affects an installation 

site’s load-bearing and drainage capabilities. 

Sufficient load-bearing ability is essential for 

manufactured homes, which can weigh 20% to 

30% more than comparable site-built homes. 

Manufactured home sites must be well-drained 

to provide a dry environment; homes should 

not be installed on low-lying land that collects 

water or creates marshy conditions. Although soil 

remediation and excavation can mitigate some 

negative issues with a site, they can affect the 

project’s timeline and costs.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 19

• Site accessibility: Builders must examine individual 

home sites to identify existing or potential 

obstacles that would prevent the installation of 

a manufactured home. These types of obstacles 

typically involve the terrain, vegetation, and existing 

structures on or adjacent to the site, such as trees 

on or overhanging the site, tree stumps, telephone 

poles, street lamps, or large boulders.

• Lot size: The lot size must be sufficient to maneuver 

the modules during installation and provide a 

staging area for temporary support of the home. 

If the foundation/unit footprint takes up most of 

the lot, off-site space must be available. Potential 

off-site space could include adjacent, unobstructed 

public or private property or public streets. Whether 

using on-site or off-site space, builders will need 

to verify that the dimensions for staging and 

maneuvering of sections and equipment during 

installation are sufficient and accurate.

• Unit transport access: Roads used for delivering the 

modules must be able to accommodate the 40- to 

60-feet-long sections of manufactured homes. The 

company that will be delivering the homes should 

have a transport assessment in place to evaluate 

potential hazards and obstacles and determine 

requirements for permits and escort vehicles.

6.1.2. Site preparation

While manufactured homes are being constructed in the 

factory, builders will need to complete site preparation, 

install foundations, and run utilities. Manufacturers 

and/or retailers can assist builders and developers 

by recommending contractors with experience in 

manufactured home site preparation and foundations. 

Site preparation facilitates the movement of the home 

during installation, ensures the proper performance of 

the foundation, and allows sufficient drainage. Thorough 

site preparation is critical to the long-term integrity and 

durability of the foundation and the home. Site preparation 

must address the home’s specific installation requirements 

as well as the local climate, the severity of the weather, and 

the site’s terrain features and soil characteristics. In contrast 

to site-built construction where schedules are often subject 

to lengthy delays, manufactured home delivery dates 

usually are accurate within a day. Given the precision of 

delivery dates, developers should schedule site preparation 

and foundation construction with the goal of completing all 

pre-delivery work at least one day before the home arrives. 

To safeguard the stability of the foundation, the soil 

must be compacted and negative qualities mitigated. 

Foundations that do not provide sufficient support can 

result in bowed floors and walls, cracked walls or ceilings, 

doors and windows that do not operate properly, and 

other structural defects that require costly repairs. Soil 

characteristics can vary considerably within a small area. It 

is not unusual for land within the footprint of an individual 

manufactured home to have different types of soil and 

variations in the slope and drainage capability. The region’s 

geography may impose additional conditions that affect 

foundation requirements, such as flood hazards or the 

potential for seismic activity. Poor soil conditions do not 

mean a site is unsuitable, but they may necessitate soil 

remediation, which requires the expenditure of labor and 

resources. Local code officials can assist with determining 

the type and properties of the building site’s soil.

Proper grading and remediation of low spots or 

depressions prevent water from collecting or ponding, 

which could cause foundation failure and/or moisture 

damage to the home. Drainage is essential in preventing 

water from accumulating in the foundation area, 

potentially damaging the foundation and the home. 

Grading is the most effective tool for ensuring rainwater will 

not pool under the home. As a general rule, the adjacent 

grade should slope away from the home for a distance of 10 

feet. If walls or other physical conditions prevent grading, 

the builder may need to install drains or swales to manage 

runoff and control surface water. Some home sites may 

require final grading after installation, normally in the form 

of backfilling against the foundation wall. Builders may 

want to budget extra time to prepare sites that have more 

challenging terrain and soil quality. 

6.2. Procurement

Builders and developers can procure MH Advantage-eligible 

homes from manufacturers who are participating in the MH 

Advantage financing program. While any manufacturer of 

HUD Code homes may contact Fannie Mae to participate in 

the MH Advantage program, a current list of participating 

manufacturers can be found on the Fannie Mae website. 
© 2021 Fannie Mae Manufactured Housing Construction Guide | 20

The two methods for procurement of manufactured 

homes are:

• Factory-direct procurement: This procurement 

system is a direct sale to the developer. Price 

specifications and delivery date negotiations 

occur between manufacturers and developers. 

Developers either can purchase unmodified MH 

Advantage models or require some customization 

of the units to meet the project’s needs. If units 

are customized, developers and manufacturers 

collaborate to arrive at a redesign. Whether the 

purchase is for customized units or a standard 

model line, it is critical that the developer and 

manufacturer agree on the terminology used to 

specify the dimensions, components, standards, 

systems, materials, finishes, and amenities. 

Factory-direct procurement may not be available 

to homebuilders and developers in all markets; 

a developer should consult with the manufacturer 

for specific procurement instructions. 

• Retail procurement: Most manufactured homes 

that are not part of a larger construction project 

are sold through local and regional independent 

home retailers. The retailers purchase or order 

homes from factories and sell homes to individual 

consumers. Manufactured home retailers often offer 

financing through traditional real estate mortgages 

and provide delivery and installation services as 

part of the sale.

Retail procurement is not limited to individual purchases. 

However, homebuilders and developers can use this 

procurement method to purchase MH Advantage-eligible 

homes for their projects, and, essentially, they will be 

making a retail purchase. Builders and developers select 

from the MH Advantage-qualified models available 

through the retailer and can customize units with the 

factory’s upgrades or options. For projects with fewer units, 

purchasing from a retailer offers certain advantages, such 

as the simplicity in consolidating purchase, delivery, and 

installation services in one vendor. While the cost of a home 

will include a retailer’s profit, the developer also has the 

potential to reduce project costs by consolidating purchase, 

delivery, and installation. 

While manufactured housing’s bulk purchasing can be 

cost-efficient, it can also present challenges, which include 

committing a significant amount of money at the beginning 

of a project rather than spreading costs across the project’s 

life cycle. Although choosing from a wide variety of options 

can appeal to homebuyers, offering extensive options can 

reduce the savings from bulk purchasing. Consulting with 

manufacturers during the planning phase will help builders 

and developers determine which finishes can yield a high 

return on investment and how options could affect the 

manufacturing timeline. 

Note: The MH Advantage agreement does not impose on 

manufacturers an obligation of project oversight. However, 

it does require that manufacturers select authorized 

retailers of MH Advantage-eligible homes and direct, 

advise, or otherwise inform retailers to adhere to the 

design and installation specifications for MH Advantagequalified homes. 

6.3. Manufacturing

One of the advantages of using manufactured homes 

in construction projects is the efficiency of factory 

construction, which occurs on assembly lines organized 

around the homes’ major components and systems. 

Large-scale industrial tools and machinery enable 

factories to work with one-dimensional unit components, 

such as roofs, walls, and floors. Tolerances are quite tight, 

and, accordingly, construction must be precise to keep 

the assembly line moving. In general, the timeline from 

the planning and design phase to a move-in ready home 

is about four months. Changes to the estimated delivery 

dates of homes affect the timeline for site preparation, 

and it is important for builders and developers to 

coordinate with manufacturers throughout all phases of 

the project, including design, planning, and construction 

in the factory to adjust site preparation and construction 

accordingly. 

The manufactured home construction process involves 

the following: 

1. First, teams construct the frame on a horizontal 

bed. Steel beams and joists used to build the 

frame provide structural and transportation 

support to the manufactured home.

2. Teams install HVAC ductwork, and electrical 

wiring, and plumbing lines through the joists. 
© 2021 Fannie Mae Manufactured Housing Construction Guide | 21

Spray insulation or batts placed between 

the members add to the energy efficiency of 

manufactured homes.

3. Floor installers add subflooring and finished 

flooring and set the furnace and water heater 

in place.

4. In separate areas, teams assemble the exterior 

and interior walls, which are then lifted by a crane, 

nailed to the floor joists, and secured with metal 

hurricane straps. The teams provide additional 

insulation and interior drywall. 

5. The next team assembles the roof with trusses 

and installs exterior sheathing. Other tradespeople 

add more insulation and paint drywall. 

6. At yet another station, factory workers install 

house wrap and siding on exterior walls and 

install roofing, windows, and doors. 

7. Finally, team members install appliances, 

plumbing fixtures, electrical connections, 

television mounts, and lighting fixtures and 

complete the interior molding.

Note: Manufacturers will “ship loose” certain roofing, 

siding, and interior finish materials to be installed on-site 

after the home is set and sections are joined.

A builder may want to negotiate additional quality control 

measures for complex projects. These measures may 

include building a prototype unit before commencing a 

production run or performing inspections of units during 

production and/or prior to shipment. 

6.4. Delivery

Once construction of a manufactured home at the factory 

is complete, a specialized transport company will deliver 

the home in sections to a prepared site. HUD Code ensures 

that manufactured homes are able to withstand the strain 

associated with transportation to installation sites, which 

can be several hundred miles from the factory. Although 

manufactured homes can withstand long distances, 

delivery routes must avoid sharp curves, steep changes in 

grade, and low-hanging wires and trees that can damage 

the structure.

Federal oversight applies not only to the construction 

of manufactured homes but also to the individuals who 

deliver manufactured homes, with the U.S. Department of 

Transportation regulating the licensing of all manufactured 

home transporters. Transport companies perform routeplanning by using the dimensions of manufactured 

home sections, or modules, to determine which roads or 

highways are optimal for transportation. Route-planning 

takes into account lane width, overpass clearance, road 

construction, and traffic congestion. Individual states 

have different requirements, regulations, and procedures 

for permits and escort vehicles and often have varying 

height and weight restrictions for loads. The department 

of transportation in each state can provide assistance with 

local requirements and restrictions. 

Delivery typically is included in the purchase price of a 

manufactured home, whether procurement occurs directly 

from a factory or through a retail dealer. Although some 

retailers use their own delivery methods, manufacturers 

generally contract with transport companies on behalf of 

the retailer. 

The cost to transport a manufactured home varies with 

locations, but consistent factors affecting transportation 

costs include:

• Distance to installation site. Builders can realize 

significant savings by working with manufacturers 

that have plants close to the installation site. 

As transportation distances increase, costs for 

fuel, labor, and materials can rise steeply. Because 

manufactured homes weigh an average of 

45 – 50 pounds per square foot, their transportation 

requires large amounts of fuel. The size of the 

modules also necessitates slow driving speeds and 

may require indirect routes, which affect not only 

fuel costs but also the costs of labor. Transporting 

modules long distances may even require a 

transportation company to invest in additional 

tires and equipment to handle the distance.

• Rout. Depending on the route to the installation 

site, transportation companies can either incur 

a cost for an escort vehicle or a temporary 

road closure.

• Permits and inspections. When transportation of the 

manufactured home covers more than one county 
© 2021 Fannie Mae Manufactured Housing Construction Guide | 22

or state, the driver must have a permit for each 

individual jurisdiction the vehicle enters.

• Moving materials. Tools, supplies, tow hitches, 

and tires may affect transportation costs.

• Insurance and liability coverage. Manufactured 

home transporters must have unique types of 

coverage because standard vehicle insurance does 

not provide adequate protection for manufactured 

homes while in transit. Transporter insurance and 

liability coverage require equipment and property 

insurance, cargo insurance, general liability, 

and toter liability. (A “toter” is a conventional 

truck cab that has been modified with a longer 

wheelbase and is used specifically for transporting 

manufactured homes.)

6.5. Foundations

The foundation provides structural support and stability for 

manufactured homes. Foundation construction methods, 

such as pier and beam, crawlspace, and concrete slab, 

work in conjunction with straps or tie-downs that anchor 

a home to the ground. To be eligible for the MH Advantage 

program, the manufactured home must be placed on a 

foundation that will permanently attach the home to the 

land. To ensure that the permanent foundation can provide 

the manufactured home with long-term, durable support 

and stability, and protect it from wind, water intrusion, 

and seismic activity, if applicable, foundations must be 

built using a design certified by a licensed professional 

engineer and approved by a Design Approval Primary 

Inspection Agency (DAPIA). Precision in the preparation 

of the foundation is essential in order to avoid utility and 

plumbing problems and damage to structural elements 

and components of the home.

In the “Permanent Foundations Guide for Manufactured 

Housing,” HUD defines the requirements for a permanent 

foundation as:

Permanent foundations must be constructed of 

durable materials — i.e., concrete, mortared masonry, 

or treated wood — and be site-built. It shall have 

attachment points to anchor and stabilize the 

manufactured home to transfer all loads, herein 

defined, to the underlying soil or rock. The permanent 

foundations shall be structurally developed in 

accordance with the standards in this Guide or be 

structurally designed by a licensed professional 

engineer for the following: 

1. Vertical stability: 

a. Rated anchorage capacity to prevent uplift 

and overturning due to wind or seismic forces, 

whichever controls. Screw-in soil anchors are 

not considered a permanent anchorage. 

b. Footing size to prevent overloading the soilbearing capacity and avoid soil settlement. 

Footing shall be reinforced concrete to be 

considered permanent. 

c. Base of footing below maximum frostpenetration depth. 

d. Encloses a basement of crawl space with a 

continuous wall (whether bearing or nonbearing) that separates the basement or crawl 

space from the backfill and keeps out vermin 

or water.

2. Lateral stability. Rated anchorage capacity to prevent 

sliding due to wind or seismic forces, whichever 

controls, in the transverse and longitudinal 

directions. 

Federal government standards require all new 

manufactured homes to meet minimum standards for 

anchoring in accordance with its structural design and 

site conditions. In addition, states have the authority 

to establish additional installation standards above the 

minimum federal standards. State governments may 

establish installation and anchoring requirements for 

homes depending on soil conditions and other factors 

in their state. (See the “Additional resources” section 

for the HUD’s Permanent Foundations Guide for 

Manufactured Housing.)

6.6. Installation 

Regulations for the installation of a manufactured home 

can vary, depending on the state where the home will be 
© 2021 Fannie Mae Manufactured Housing Construction Guide | 23

installed. Manufacturers and retailers can be invaluable 

resources to builders and developers in navigating the 

governing regulations, licensing requirements, and local 

installation programs. The regulation of manufactured 

home installation involves three levels: federal codes 

known as the Model Manufactured Home Installation 

Standards (FMMHIS), state installation requirements, and 

manufacturer requirements. The FMMHIS sets out a basic 

level of regulation that includes foundations, tie points, 

plumbing, ductwork, and electrical systems. Next, state 

codes can supplement the federal code based on local 

conditions like average climate and soil quality. State codes 

must meet or exceed the FMMHIS; they cannot implement 

standards that are less strict. Finally, manufacturers’ 

installation instructions supply more detailed instructions. 

To ensure that these instructions also meet federal 

standards, manufacturers must submit installation 

instructions to HUD for every make and model of home 

they produce. It is important to note that a manufacturer’s 

warranty may be voided unless the installation procedures 

follow the manufacturer’s manual to the letter. While the 

manufacturer typically offers a basic structural warranty, 

many third-party warranty providers exist for manufactured 

homes that can ensure structural components and home 

systems or appliances with generally identical coverage to 

traditional site-built homes. Developers may request a list 

of warranty providers from the manufacturer. 

HUD regulates the installation of manufactured homes in 

all states either by administering the state’s Manufactured 

Home Installation Program or by granting full or conditional 

approval to a state to administer its own qualifying 

installation program. The Manufactured Home Installation 

Program Regulations (24 CFR Part 3286) require all state 

programs to train and license installers working in each 

state and to administer an installation inspection program 

meeting the federal requirements.

In states not choosing to administer their own 

manufactured home installation program, HUD ensures 

that manufactured home installers are trained and licensed 

and administers an inspection program.

In addition to meeting federal, state, and manufacturer 

installation standards, successful installation requires 

the following:

• A suitable site

• Site preparation 

• An appropriate foundation 

If it is necessary to place a manufactured home in a 

temporary location before installation, the sections of the 

home must be supported temporarily in accordance with 

the manufacturer’s instruction for temporary installation. 

While each installation is different, the following list sets 

out a generalized version of the task sequence for crews 

installing a manufactured home. 

1. Installers first remove the materials that protected 

the home during delivery. They inspect the home 

and all provided materials, appliances, and 

equipment, and report any damage or shortages 

to the manufacturer. 

2. Workers install polyethylene sheeting or other 

moisture retarders over the ground based on the 

manufacturer’s instructions or local building codes.

3. Installers position the first (heaviest) section on its 

foundation. Using a combination of hydraulic jacks, 

rollers, and winches, they move the section into 

position and remove the running gear. The installers 

repeat this process with the second section and align 

it with the first section.

4. Next, installers block and level the home. They make 

height adjustments as necessary to align the floors, 

roof, and intersecting walls, and fasten or “marry” 

each section together in accordance with the 

manufacturer’s instructions and HUD Code.

5. Installers then anchor the home to its foundation. 

(The setting of tie-down anchors may be placed 

before the setting of the home.)
© 2021 Fannie Mae Manufactured Housing Construction Guide | 24

6. Workers backfill against the foundation wall to the 

height of the waterproofing while taking care to not 

damage the drainage system. 

7. Next, workers install gutters and downspouts. If 

the home has a hinged roof that workers folded 

for shipping, they seal the roof along the ridgeline. 

Workers finish the roof by shingling over the ridge cap.

8. Installers connect heating and ventilation ducting, 

make all crossover connections for the electric 

and plumbing systems between the sections, and 

connect the home’s utility services. Workers also 

pressure test the water system, perform a power 

check, and test appliances and smoke alarms.

9. Workers then seal the marriage line between the 

sections and complete interior finishes, repairing any 

drywall stress cracks caused by transportation. The 

workers also install or finish flooring and trim and 

install items such as drapes, blinds, mirrors, closet 

shelves, and hardware.

10. Workers install porches and steps with handrails, 

as appropriate.

11. Finally, workers remove debris and conduct a 

thorough cleaning to ready the home for occupancy. 

6.7. Inspections

After the installation process is complete, the agency 

representing the local building authority inspects the 

home. If the home passes the inspection, authorities will 

issue a Certificate of Occupancy. If the inspection fails, 

the inspector will issue a Correction Notice detailing the 

items to address before calling for a re-inspection. State 

and local building codes may require various parties to 

inspect the home during the installation process. The 

installation inspection commonly occurs after the home 

is leveled and anchored to the permanent foundation. 

During the final stages, builders will also complete the 

driveway and sidewalk, install a garage or carport, and 

finish the site’s landscaping. Those structures added on-site 

may be subject to separate inspections in addition to the 

installation inspection mentioned earlier.

6.8. Selling homes to aspiring homebuyers

The consumer’s experience of buying a modern 

MH Advantage home in a new development should be 

similar to the experience of purchasing a site-built home. 

Builders should invest time and resources into replicating 

the familiar process of touring a model home and offering 

prospective consumers a glimpse of the amenities and 

streetscapes that may accompany the new development. 

Another consideration is that homes built to the MH 

Advantage standard should appeal to consumers who 

would otherwise consider a site-built home if not for 

current affordability challenges. It should be understood 

that these consumers have likely become accustomed 

to beginning their searches for any goods or services 

through an online platform. Sophisticated builders should 

explore opportunities to promote MH Advantage-eligible 

homes through modern sales channels, such as digital 

and social media. 

Regarding the mortgage financing experience, it is 

advantageous for a homebuilder to engage with a lender 

who has experience in the MH Advantage financing program. 

By collaborating with the right partners, the homebuilder 

will enable homebuyers to select, finance, and move into 

a home financed with the MH Advantage loan. 
© 2021 Fannie Mae Manufactured Housing Construction Guide | 25

7. Challenges to Constructing Developments 

with MH Advantage-Eligible Homes

7.1. Perception of manufactured homes

The following sections discuss common misconceptions 

and ways builders can mitigate negative perceptions to 

ensure the success of MH Advantage projects.

7.1.1. Quality and appearance

A general misconception is that today’s manufactured 

home is not on par with a site-built home. Although this 

view is not accurate, homebuilders and developers should 

seek ways to mitigate this misperception. In focus groups, 

Fannie Mae discovered that consumers do not have a fixed 

perception of modern manufactured homes, and several 

factors can have a positive influence:

• Consumers could not tell the difference between 

site-built and MH Advantage-eligible homes, with 

83% of surveyed respondents inaccurately labeling 

an MH Advantage-eligible home as site-built.17

• Interest in these homes increased by 31% when 

prospective buyers looked at pictures of the 

amenities and design choices available both inside 

and outside of today’s manufactured homes.18

• Perceptions of quality and value also increased as 

consumers began to understand the benefits of 

MH Advantage financing. 

• The affordability and customizable nature 

of manufactured homes also appealed to 

respondents, whose interest increased when 

they learned that manufactured homes cost less.

Respondents experienced a positive mindshift that was 

both rational and emotional. They felt they could purchase 

a beautiful, newly built, sturdy home with features and 

upgrades they had previously thought were out of their 

budget’s reach. 

7.1.2. Zoning

Before a project can begin, builders and developers must 

have planning clearance, which is the local planning 

board’s evaluation of the property to determine whether 

the proposed development complies with land use and 

environmental regulations. Planning clearance may be 

required to apply for and receive building permits. 

Despite the many advantages of manufactured housing, 

local zoning rules, subdivision ordinances, architectural 

design standards, and other requirements often limit 

where manufactured homes can be located. Zoning laws 

divide the land into different classifications, or zones, and 

determine the land’s use. Even within areas designated 

17 Why Generating Interest in Manufactured Housing is About Showing, Not 

Telling (MH Insider, 2020).

18 Why Generating Interest in Manufactured Housing is About Showing, Not 

Telling (MH Insider, 2020).
© 2021 Fannie Mae Manufactured Housing Construction Guide | 26

for residential use, local laws can create a barrier for the 

placement of manufactured homes by imposing the 

condition that homes must be built to locally adopted 

building codes. This can exclude manufactured homes 

from residential zones because they are built to federal, 

not local, codes.

To determine if zoning laws allow subdivisions of 

manufactured homes, builders can obtain a copy of zoning 

maps and applicable ordinances from local planning or 

building departments. Where restrictions on land use 

prevent the development from being built, builders may 

make changes to the development’s design to fall in line 

with the zoning’s ordinances. Or, if modifications cannot be 

made, builders can request a zoning exception or change. 

Consulting with attorneys specialized in zoning can help 

builders interpret the ordinances and determine the best 

way to obtain the necessary permits. According to the 

Planners’ Advocacy Network, the easiest way to obtain a 

permit, in this case, is to request a zoning exception with 

either a use permit or a zoning variance, as defined below:

• Use permit: Also known as a conditional use permit, 

this permit grants the landowner the ability to use 

the property in a way that normally is not permitted 

under the current zoning regulations. Typically, 

these permits come with stipulations. For instance, 

if a zone has been changed to a commercial zone, 

a special use permit for a residential subdivision 

may come with limitations on the size or number of 

homes. 

• Zoning variance: A variance typically is granted only 

when the landowner can demonstrate that special 

conditions on the land are creating an undue 

hardship that makes it difficult to comply with the 

zoning requirements.

It is rarely easy to change land classification because 

proposed changes to property zoning must align with the 

local master land-use plan. Procedures for requesting a 

land classification change vary depending on the location 

and local ordinances. In most cases, requestors must 

submit a written application and pay a fee. Requestors may 

have to present the case to the local zoning board during 

a hearing. Developers should be prepared to present the 

board with project details and provide convincing reasons 

to persuade the board to grant the request.

More importantly, developers often must prove that 

the intended use will not have a negative effect on the 

neighboring community before a local zoning board grants 

a variance or a change in the land’s classification. 

CASE STUDY

Education yields zoning win in 

Panama City, FL

In June 2020, Panama City amended 

its Unified Land Development Code 

to recognize Residential Designed 

Manufactured Homes (RDMH) in 

areas zoned for residential use. Prior 

to this amendment, manufactured 

housing was prohibited in 

residential zones of Panama 

City. The manufactured housing 

industry educated city officials on 

MH Advantage’s potential to help 

rebuild the city after Hurricane 

Michael devastated much of the 

area’s housing stock. This awareness 

prompted the city to amend its code 

in June. This amendment opened up 

MH development opportunities in 

Panama City. There are opportunities 

for this type of engagement in 

jurisdictions across the country. 

As a leader in affordable housing, 

Fannie Mae could also be a leading 

voice in these conversations.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 27

Unless factory-built housing receives state preemptions 

from local zoning ordinances, local jurisdictions are free 

to develop specialized regulations targeting factory-built 

housing that can severely limit its placement location 

and method. Also, without state protections, covenants 

and restrictions may also contain provisions that either 

significantly limit or prohibit the use of factory-built 

housing.

Recognizing the potential for some types of factorybuilt housing to provide affordable homeownership 

opportunities, some jurisdictions passed laws that make 

it easier to site manufactured homes. As an example, 

California law permits the placement of manufactured 

homes built in accordance with local codes on any 

residential lot (California Health and Safety Code 1980). 

While regulatory hurdles certainly can present barriers, 

it is important to note that even when regulatory issues 

are not a concern, market factors can have a statistically 

significant impact on the placement of manufactured 

homes. These factors include regional location, population 

density, median household income, the existing inventory 

of manufactured housing units, and proximity to 

manufactured housing plants. 

7.2. Appraisals

Many manufactured homes are financed with chattel 

(or personal property) loans, which do not require 

appraisals. As a result, many appraisers lack experience 

in manufactured housing. Furthermore, because 

MH Advantage is a new program with unique home 

features and specific appraisal requirements, there can be 

uncertainty about those requirements, or the process may 

seem too complex. To reduce the perceived complexities 

of MH Advantage appraisals, Fannie Mae offers training 

and resources, including:

• Free e-training and a suite of appraisal support 

materials, available in a single location at 

fanniemae.com/mhappraiser.

• E-learning course with continuing education (CE) 

credits, developed in collaboration with McKissock 

Learning, a leader in appraiser education. Earning 

CE credits incentivizes participation in the course, 

as appraisers need CE credits to maintain licensure/

certification.

In addition to McKissock Learning’s own outreach efforts, 

Fannie Mae has promoted these resources to appraisers 

nationwide to raise awareness. Furthermore, as the 

adoption of MH Advantage-eligible homes continues to 

grow, appraisers will benefit from gaining experience on 

how to appraise this property type.

Since MH Advantage is a new product, relatively few 

MH Advantage home sales are available in many markets. 

Based on Fannie Mae’s Selling Guide requirements, 

appraisers must use other MH Advantage homes, when 

available, for the comparable sales. If fewer than three 

MH Advantage sales are available, then the appraiser 

must supplement with the best and most appropriate 

sales available, which may include site-built homes. 

See Selling Guide, B4-1.3-08, Comparable Sales (10/02/2018)

for additional information. 

Appraisers may not create comparable sales by combining 

a vacant land sale with the contract purchase price of a 

home. However, a created sale can be added as additional 

support for value — slotted in as additional sale in the 

sales comparison approach section or in the addendum. 

The goal is to ensure a credible appraisal that reflects the 

market value, condition, and marketability of the property. 

Since it is a manufactured home, appraisals must be 

completed using the HUD Form 1004C form. However, 

unlike a standard manufactured home appraisal, two 

manufactured home sales are not a requirement. (Links 

to MH Advantage appraiser training, checklists, forms, 

and guides are in the “Additional resources” section in 

the appendices.)
© 2021 Fannie Mae Manufactured Housing Construction Guide | 28

8. Subdivisions in Progress

Summary

The Fruition Colorado subdivision, located at the center 

of the largest energy-producing area in Colorado, will help 

grow the town of Keenesburg through robust infrastructure 

enhancements like housing and commercial and public 

spaces. This is a master planned community consisting 

of ~3,500 acres within Weld County. It will become the 

center for industrial development and will maintain the 

water within the community and Northern Colorado. The 

development will feature as many as 2,500 MH Advantageeligible homes, with its rollout occuring across multiple 

phases. 

The first phase includes ~500 MH Advantage-eligible 

units. Each manufactured home featuring MH Advantage 

characteristics has an estimated savings of $65K per unit 

compared to a site-built home. This subdivision will result 

in over $30 million in savings for working-class families 

in the area. Home sales may begin during the first phase 

in late 2021, with a second development phase planned 

for 2023. Homeowners could move in starting Q1 2022. 

This land is fully entitled and zoned to allow for 

manufactured housing.

Development team

HOLDco

Manufacturer

Multiple HUD code manufacturers agreed to produce 

the MH Advantage-eligible homes for this phased 

development, including:

• Skyline Champion Corporation, a leading 

manufacturer of HUD code manufactured homes 

headquartered in Troy, Michigan.

• Clayton Homes, a national builder of off-site and 

on-site built homes.

This subdivision will result in over 

$30 million in savings for workingclass families in the area.19

8.1. MH Advantage-eligible homes 

in a fast-growing market

19 Based on market study done by HOLDco.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 29

Key takeaways

The key to success in developing Fruition Colorado is 

to create a new, high-quality, sustainable, and diverse 

community that provides attainable housing for the Town 

of Keenesburg. Fruition Colorado will show how site-built 

and MH Advantage-eligible homes can bring affordability 

and faster development time into the subdivision model 

to deliver incremental business growth for developers and 

more attainable options for consumers.

Many municipalities may have a preconceived notion of 

what constitutes a ‘manufactured home’ community. 

An effective tool for the Fruition Colorado development 

has been to provide strong, upfront examples to city and 

town officials and to communicate what these new homes 

consist of: well-designed interiors and exteriors that fit into 

the neighborhood alongside quality fixtures, materials 

that are reasonably priced, porches, and attached garages. 

Furthermore, the Fruition Colorado development used a 

Planned Unit Development of the town’s zoning code to 

reduce the minimum lot size. As a result, the developer 

will be able to ensure the community features a number of 

amenities, including greenways, park systems, sidewalks, 

and ample open space.

Prior to embarking on any residential design of this 

type, it’s best for builders and developers to effectively 

communicate all of the components mentioned above. 

This will help build trust with key community members.

Community images

Aerial view

Phase one: Streetscape
© 2021 Fannie Mae Manufactured Housing Construction Guide | 30

Summary

The diverse city of Oroville is a little over an hour north of 

Sacramento, California. Oroville has ample opportunity 

for housing and recreational activities. In recent years, 

strong economic activity in the surrounding regions 

has sparked an interest in Oroville as an appealing, 

affordable destination for homeowners. The city reported 

a population growth of 20% year-over-year in August 201920

and the 2018 Camp Fire that destroyed homes in the nearby 

town of Paradise has left the city with a substantial need to 

quickly ramp up the supply of affordable housing. 

The project, a partnership between Skyline Champion 

Corporation and west-coast builder W&R, will consist of 134 

MH Advantage-eligible homes installed and sold in three 

phases. The subdivision will consist of home sites, walking 

trails, four commercial lots, and associated infrastructure 

and landscaping improvements in the western portion of 

the site, and approximately 13.8 acres of open space in 

the eastern portion of the project site. The first model 

units may begin installation in mid-2022. It is estimated 

that the newly built MH Advantage-eligible homes will 

cost nearly $100,000 less than comparable site-built 

properties in the Oroville area. MH Advantage-eligible 

homes don’t compromise on quality and aesthetics, 

and this development is further proof that they’re also 

cost-effective. 

Development team

W&R has extensive experience building communities of 

off-site built homes.21

It is estimated that the newly built 

MH Advantage-eligible homes 

will cost nearly $100,000 less than 

comparable existing site-built 

properties in the Oroville area. 

8.2. High-quality manufactured 

housing to meet growing demand

20 Natalie Hanson, “Oroville could be fastest-growing Northern California 

city, despite Camp Fire housing crisis,” Chico Enterprise-Record, last 

modified February 19, 2020.

21 “Portfolio,” W&R Wedgewood, accessed July 6, 2021.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 31

Manufacturer

Skyline Champion Corporation is a leading manufacturer of 

HUD-code and modular homes with 17% HUD Code market 

share in 2018.22

Key takeaways

This is the first large-scale real estate project leveraging 

the new line of Genesis Homes, an MH Advantage-eligible 

line of homes created by Skyline Champion. To ensure the 

project was completed in a way that was comfortable for 

all stakeholders while also ensuring a thoughtful branding 

and marketing strategy, Skyline Champion enlisted the 

expertise of Vanguard National Builder Group. To create 

a “plug-and-play” sales model, the brand strategy group 

worked to understand the prevailing economics of the 

Oroville region, including consumer sentiment and 

behavior. The group tested the model in Oroville and 

expects to quickly scale to opportunities in other markets 

across the country. Homes in the Oroville subdivision will 

be available for sale across a variety of platforms, including 

online and on-site. 

Another key takeaway was the interest and willingness 

of the manufacturer and developer to connect with 

mortgage lenders in the area well in advance of the 

completion of the construction project. The goal was to 

understand their ability to provide mortgage financing for 

the homes in question. Depending on the sales process 

for a given project, a lender may need to provide either 

Sequoia / Dylan — Cape Carson / Wellesley or 

Madeline — Ranch v2

Caribou / Prescott — 

Ranch

Russell / Barkley — 

Ranch v2

Roberto / Carrington — 

Modern Farmhouse

Available models

River Ranch (Oroville, CA)

Community aerial view

Phase 1 Phase 2 Phase 3

online or on-site resources and support for prospective 

borrowers. Understanding the sales strategy and clearly 

communicating it to lenders can help builders and 

developers ensure that their prospective customers have 

access to a wide variety of mortgage financing that meet 

their needs. 

Note: This figure is for informational and discussion purposes only. 

The areas shown are approximate, but are representative of the 

project intention. 

22 “Skyline Champion Corporation – Overview,” Skyline Champion, 

accessed July 6, 2021.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 32

Summary

The Housing Land Trust (HLT) of Sonoma County, 

California, was looking for innovative solutions to address 

the shortage of affordable housing in disaster recovery and 

high-cost areas. They found that an MH Advantage unit 

could address their affordability and construction needs 

in a number of ways. Through a project called Jamie Lane, 

they leveraged MH Advantage homes and the community 

land trust model to create new affordable homeownership 

units in this high-cost area.23 Local, state, and national 

partners have come together to make this innovative 

strategy a reality in Cotati, California. The HLT is currently 

exploring the potential to replicate this model to create 

an additional 22 affordable homeownership units in the 

City of Petaluma, California. The community is located in 

the North Bay sub-region of the San Francisco Bay Area, 37 

miles north of San Francisco.

HLT has chosen the MH Advantage-eligible homes for 

three main reasons. First, the prefabricated product brings 

decreased costs of construction. Second, the homes are 

designed with features comparable to site-built homes, 

thereby minimizing neighbors’ concerns about stylistic fit 

within the neighborhood and on-site disruption during 

construction. Third, the manufacturing process reduces the 

overall time needed for construction.

As a result of the layering of the 

different subsidies, the homes will 

be sold “at cost” with a maximum 

sales price of $391,000.23

Builder

Renew Now Homes is a California-based manufactured 

homebuilder that participates in Fannie Mae’s MH 

Advantage program and has experience delivering 

MH Advantage-approved manufactured homes in 

Sonoma County.

Partners

HLT of Sonoma County partnered with Renew Now Homes, 

the county and CalHFA. 

8.3. An innovative solution to address 

the affordable housing shortage

23 Dev Goetschius, Cali Slepin, and Julian Tucker, “A New Approach for 

the Rapid Production of Affordable Homeownership Opportunities: 

Manufactured Homes + Infill Sites,” Housing Land Trust of Sonoma 

County, accessed July 6, 2021.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 33

Key takeaways

The city recognized the need to preserve long-term 

affordability and allowed parcels of land to be donated to 

HLT for the stewardship of affordable housing. By combining 

the community land trust model with a cost-efficient home, 

the city is getting a deeply affordable product without 

compromising on quality while also helping to achieve 

multiple regional housing production goals. 

Community images

Aerial image of the site

Rendering of a comparable renew now home Site plan

Front elevation of proposed homes

Replicating the model

HLT of Sonoma’s goal is for other community land trusts 

to leverage this model as a prototype for affordable 

homeownership that targets disaster recovery areas, 

communities with limited land supply and/or underutilized 

land (including infill parcels), and places where high labor 

and construction costs make it difficult to build housing. 

HLT is currently seeking to replicate this program in the City 

of Petaluma in Sonoma County. The city is in the process 

of identifying land and funding, and HLT will employ the 

same team, methodology, and products to rapidly bring 

innovative, affordable homes to this community.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 34

Summary

The Cordell Oaks subdivision is located in Guadalupe 

County, Texas, in the San Antonio metropolitan area. As 

its population continues to grow, home prices continue to 

increase. The metro area population of San Antonio in 2021 

is 2,368,000, which is a 2.07% increase from 2020.24 During 

the 12-month period ending July 2020, the average sales 

prices for new and existing homes increased 5%.25 The city 

of New Braunfels is the second largest city in the area and 

30 miles northeast of the city of San Antonio. The military 

has a large presence in the area, and its effect on the local 

economy is significant.

The homebuilder who developed this community has 

extensive retail sales experience in manufactured homes. 

This builder chose MH Advantage-eligible homes to 

offer affordable housing with prices substantially below 

comparable homes in the area. The resulting Cordell Oaks 

subdivision features 21 one-acre lots and serves as the first 

full MH Advantage-eligible community in Texas. 

The home prices start at $201,995, and the floor plans 

feature open layouts, asphalt driveways, and a standard 

384-square foot garage. Offers for similar site-built homes 

on an acre of land currently sit at a $300K price-point in that 

area. The community’s design accommodates homebuyers 

looking for affordable but quality living. As of Q2 2021, 

all of the lots which will feature MH Advantage-eligible 

homes have been pre-sold, with the home shipments being 

fulfilled throughout the year.

The sales model is to build an entire move-in-ready product 

for buyers. Buyers do not deal with any subcontractors, and 

the price they are presented includes all improvements, 

land, the garage, and the home. They are also able to go 

under contract on homes that are “to be built,” but the 

closing occurs when the home is complete. This is different 

from the sales process at traditional MH retailers.

8.4. Adapting business models 

to bring affordable housing to scale

24 “San Antonio Metro Area Population 1950 – 2021,” Macrotrends, accessed 

July 6, 2021.

25 “Comprehensive Housing Market Analysis, San Antonio–New Braunfels, 

Texas,” U.S. Department of Housing and Urban Development, Office of 

Policy Development and Research, accessed July 6, 2021.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 35

Key takeaways

Partnership with the right lender was the key to this 

project's success. A homebuilder designed this community 

to become a pilot program to showcase a few MH 

Advantage-eligible model homes to local municipalities. 

The goal was to continue developing similar subdivisions 

in the area. Prior MH sales experience allowed this 

homebuilder to quickly understand the financing 

benefits of MH Advantage and collaborate with the right 

stakeholders to serve this community. The company 

established a buyer-friendly home sales process, which 

allowed homebuyers to coordinate the additions of garages 

or carports directly with a contractor who specialized in 

building these add-on features. Early in the development 

process, the builder partnered with a lender knowledgeable 

in MH Advantage financing, which helped many potential 

homebuyers obtain conventional financing for their 

future homes. By collaborating with key partners early 

in the development process, the homebuilder enabled 

homebuyers to efficiently select, finance, and build the 

homes eligible for MH Advantage financing. 

The builder also found the right MH Advantage-eligible 

models best suited for his community and coordinated 

an efficient delivery schedule of those homes with the 

manufacturer. As a family-owned small business, the 

developer enabled lean but efficient processes that 

translated into additional cost savings for his company. 

The builder is already looking into new development 

opportunities in the area.

Model 

option 1

Model 

option 2

Model 

option 3

Development team

Spark Homes is a small homebuilding company that 

specializes in offering MH Advantage-eligible homes.26

Manufacturer

The company orders homes from Champion Home 

Builders, a manufactured home company that operates 

as a subsidiary of the Skyline Champion Corporation.

The community model offerings

The home prices start at $201,995, 

and the floor plans feature open 

layouts, asphalt driveways, and a 

standard 384-square foot garage.

26 “Manufactured Homes for Sale in New Braunfels, Texas,” Spark Homes, 

accessed July 6, 2021.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 36

Summary

Kilpatrick Woods will be a community of 241 high-end, 

factory-built, single-family homes within the city limits 

of Hagerstown, Maryland. The pricing for these homes 

will range between $181,000 (2BR) and $223,000 (4BR), 

and the homes will be marketed to first-time homebuyers 

with incomes at 80% – 120% of the Area Median Income. 

Civil servants and employees lured to the area due to the 

growth in warehouse and distribution jobs are currently 

shut out of the housing market, a problem this community 

aims to solve.

The city of Hagerstown is experiencing significant job 

growth in the warehouse and distribution sectors, 

anchored by the North Point development four miles from 

the site. The North Point development could generate 1,500 

new jobs. In addition, the housing market is facing an acute 

market shortage, particularly at entry-level price points. 

No new construction within this price range is currently 

taking place in the area. Kilpatrick Woods will fill that gap 

with quality affordable manufactured homes for moderateincome individuals and families.

Site overview

• 241 MH Advantage-eligible homes on 5,000 sq. ft. 

lots surrounded by green space.

• Amenities include a clubhouse, nature trails, 

and playgrounds.

• Integrated with the city’s street grid with public 

roads.

• Ease of access to I-81, public schools, public transit 

(.3 miles), and businesses.

• Enterprise Green Community-certified.

Site location and aerial view 

8.5. Kilpatrick Woods — workforce 

housing in the northeast
© 2021 Fannie Mae Manufactured Housing Construction Guide | 37

Development team

The subdivision will be developed by PB Hagerstown, 

Next Step, and a partnership of the following three firms: 

a finance company, a general contractor, and a factory-built 

advisory.

Manufacturer

Eagle River

Key takeaways

For any unique real estate development project supporting 

low- to moderate-income homeownership opportunities, 

multiple sources of funding are often necessary to finance 

the acquisition of buildable land and the construction of 

the single-family homes. 

In addition, one of the keys to assembling a coherent 

project plan for a development leveraging manufactured 

homes is ensuring detailed knowledge of the construction 

and regulatory processes. For Kilpatrick Woods, the team 

leveraged the expertise of MH Advisors, a D.C.-based 

advisory services group focused on issues in housing 

finance. This collaboration ensured the development 

team was aware of and could anticipate any differences 

in the home construction process that might impact the 

project’s bottom line. 

Community images

MH Advantage-eligible 

homes are gaining traction 

as an affordable alternative 

to site-built construction.

One of the four model offerings

One of the four model offerings
© 2021 Fannie Mae Manufactured Housing Construction Guide | 38

9. Conclusion

Homebuilders and developers have the opportunity 

to introduce more affordable home options into the 

marketplace by leveraging manufactured homes built to 

the MH Advantage standard. The inherent efficiencies in 

the manufactured home construction process carry the 

potential to reduce overall construction cost and reduce 

turn times — allowing those cost savings to be borne out 

in the consumer’s purchase price. These benefits allow 

builders and developers to not only make a profit but 

also tackle the affordable housing supply crisis in the U.S. 

Although the possibilities of MH Advantage homes in a 

development setting are exciting, this product is still very 

new to most markets in the U.S. Through our work with 

manufactured housing manufacturers and developers, and 

our overview of subdivisions in progress, we’ve identified 

some key factors that will help ensure a successful 

subdivision project:

• Cross-functional partnerships are vital. Connecting 

nonprofits, government entities, homebuilders, 

lenders, and third-party advisors can help ensure 

that the needs of all parties are met without 

compromising the consumer’s wants and needs.

• Developers and homebuilders should engage 

with manufactured housing manufacturers to 

fully understand the construction and installation 

processes for manufactured homes. 

• Successful projects have a coherent marketing 

strategy. Outdated perceptions of manufactured 

homes are arguably still the largest barrier to 

greater consumer and developer adoption. 

• Developers and manufacturers who work together 

to understand the local socioeconomic trends for 

a given geographic market and produce home 

options that meet the needs of those customers 

are far more likely to be successful. 

• Developers and homebuilders who want to provide 

the best mortgage financing packages that are 

available for their prospective customers should 

connect with mortgage lenders early and often to 

ensure loan officers in the area are familiar with 

conventional financing options for manufactured 

homes.

The following appendices provide further resources 

for homebuilders, developers, and other industry 

stakeholders.
© 2021 Fannie Mae Manufactured Housing Construction Guide | 39

Appendices

A1. Manufactured home oversight and regulations

Federal Manufactured Home Construction and Safety Standards (FMHCSS), commonly known as the HUD Code, regulate 

manufactured home design and construction, strength and durability, transportability, fire resistance, and energy efficiency. 

They also set performance standards for the heating, plumbing, air-conditioning, and electrical systems of manufactured 

housing. The FMHCSS ensure the quality and safety of manufactured homes. 

The 1976 implementation of FMHCSS originated when Congress passed the National Manufactured Housing Construction and 

Safety Standards Act in 1974 (42 U.S.C. § 5401 et seq.). At the time, the United States had three model building codes with many 

state and local modifications. The Act authorized HUD to establish and enforce construction and safety standards for factorybuilt manufactured housing for three interrelated reasons. First, prior to the advent of the HUD Code, manufacturers ordinarily 

did not know which state building code to use when constructing the homes due to the interstate shipment of homes from 

the factory to the retailer to the home site. Allowing manufacturers to build to a single construction standard that preempts 

state and local codes eased the administrative burden on manufacturers while establishing consumer protections. Second, 

states were not able to regulate manufactured home construction and safety effectively and uniformly. Federal supervision of 

building standards reduced the burden on states that lacked adequate resources. Third, Congress wished to preserve access 

to affordable housing for middle- and lower-income families. A uniform code that was applicable to all states decreased 

manufacturing costs while ensuring a minimum level of safety, thus reinforcing manufactured housing as a safe and affordable 

housing option. 

A1.1. Design approval

HUD Code requires an approved set of model plans for each home model the manufacturer wishes to construct. The review 

and approval of these model plans serve the same function as the local government plan review for site-built housing. Some 

third-party agencies also act as a Primary Inspection Agency (PIA). The two types of PIA are Design Approval Primary Inspection 

Agencies (DAPIA) and Production Inspection Primary Inspection Agencies. DAPIA approve a manufacturer’s home design to 

ensure the plans are consistent with the HUD code. Manufacturers contract directly with a state or private third-party agency 

and pay for design review and home inspection services. 

A1.2. In-plant quality assurance and third-party inspections

Federal regulations require the construction of manufactured homes in HUD-certified factories that are capable of producing 

homes that meet HUD Code standards. To achieve HUD’s certification, manufacturers must contract with a HUD-approved, 

third-party entity to inspect and certify that the completed homes were manufactured under an in-plant quality control 

program. The HUD label affixed to the exterior of each home section indicates compliance with the HUD Code. 

Many state governments, in cooperative agreements with HUD, have designated a State Administrative Agency (SAA) to 

conduct periodic checks of manufacturing plant records and respond to consumer complaints. For states without SAAs and for 

the District of Columbia, HUD provides these functions. HUD has approved 13 state and private third-party agencies to conduct 

inspections of manufacturers’ production facilities. The federal code also dictates certain procedures the manufacturer/retailer 

must follow should they become aware of a problem with a home after it has been shipped from the manufacturing facility 

(24 CFR Part 3282.401-416, Manufactured Home Procedural and Enforcement Regulations).

A1.3. Installation

Installation is perhaps the single most important factor in ensuring the safety and durability of a manufactured home. While 

the FMHCSS regulate manufactured homes before they leave the factory, the Federal Model Manufactured Home Installation 

Standards (FMMHIS) govern the installation of the home on-site. The Manufactured Housing Improvement Act of 2000 granted 
© 2021 Fannie Mae Manufactured Housing Construction Guide | 40

HUD the authority to establish the installation standards as part of the Manufactured Home Installation Program. Although 

the installation standards do not have the same preemptive effect as the construction and safety standard, they do establish 

minimum requirements for manufacturers to implement through their installation instructions. These directions include 

methods for performing a specific operation or assembly and work performed on-site as part of the placement of the home, 

such as the foundation, anchorage, and post-placement connections of utilities and some appliances.

Manufacturers also must provide DAPIA-approved installation instructions for each new manufactured home. The approved 

installation instructions ensure the support and anchorage of each home are capable of meeting or exceeding the design 

loads MHCSS requires. When site conditions require a type of foundation other than what is prescribed in the installation 

instructions, a professional engineer or registered architect must prepare and certify that the alternate foundation meets or 

exceeds the federal standards and it is compatible with the home. 

Installers must be licensed by HUD or the SAA for the state in which they are installing homes. To obtain a license, an installer 

must meet certain experience and/or education requirements. Licensing requirements include completion of a HUD-approved 

training program, maintaining adequate bond or letter of credit and insurance, and submission of an application to HUD or 

the SAA. (See HUD Form 307: HUD Manufactured Home Installer License Application in the “Additional resources” section.) 

Installers typically are required to take approved continuing education courses to renew their licenses. 

Under HUD regulations, installers are responsible for obtaining an alternate design that has been prepared and certified by a 

registered professional engineer or architect when suitable designs and instructions are not available from a manufacturer. To 

ensure safety, the alternate design must stay consistent with the manufactured home design and conform to the requirements 

of the MHCSS. 

A HUD-qualified inspector must inspect the completed installation. This inspector certifies that the installation of a 

manufactured home is in accordance with the manufacturer’s installation instructions. States can choose to operate their own 

installation programs in lieu of the federal program, but they must implement installation standards that provide residents 

protection equal to or exceeding the protection provided by FMMHIS. (The “Additional resources” section provides links to HUD 

installation forms.)

A1.4. Site-built structures

Although site-built structures are built to state and/or local codes rather than federal code, HUD does regulate site-built 

structures or alterations made at the time of the manufactured home’s installation (24 CFR §3285.3). HUD requires the 

evaluation of any alteration to a manufactured home that could affect compliance with the HUD Code. Alterations include 

any additions (such as garages, decks, or porches), modifications, or replacement or removal of equipment and cannot affect 

the manufactured home’s compliance with the HUD Code or impose additional loads on the manufactured home or the 

foundation. 

For a site-built structure or alteration to be permitted, it either must be included in the manufacturer’s DAPIA-approved 

designs and installation instructions or designed by a registered professional engineer or architect in accordance with the 

manufacturer’s instructions.

A1.5. Code and standard updates

The Manufactured Housing Consensus Committee (MHCC) is a federal advisory committee overseen by HUD’s Office of 

Manufactured Housing Programs. The committee consists of 21 voting members representing manufacturers, retailers, 

consumer organizations, and public officials with an interest in manufactured housing. MHCC recommends changes to 

both the construction and safety code and installation standards and cooperates with other federal agencies, such as the 

Department of Energy and the Environmental Protection Agency on crosscutting issues. 
© 2021 Fannie Mae Manufactured Housing Construction Guide | 41

A2. Additional resources

Fannie Mae

MH Advantage appraisals:

MH Advantage for Homebuilders and Developers

MH Advantage Appraiser Checklist

MH Advantage Appraiser Training

Form 1004-C: Manufactured Home Appraisal Report

Selling Guide, B2-3-02: Special Property Eligibility and Underwriting Considerations: Factory-Built Housing

Selling Guide, B5-2-03: Manufactured Housing Underwriting Requirements

Selling Guide, B4-1.2-03: Requirements for Postponed Improvements

Selling Guide, B4-1.4.01: Factory-Built Housing: Manufactured Housing

Manufacturers Participating in the MH Advantage Financing Program

MH Advantage case studies:

Fruition Colorado in Keenesburg, CO

U.S. Department of Housing and Urban Development (HUD)

Programs:

HUD Office of Manufactured Housing Programs

Manufactured Home Construction and Safety Program

Manufactured Home Dispute Resolution Program

Manufactured Home Installation Program

Manufactured Housing Consensus Committee (MHCC)

Additional Resources and Updates

Manufactured Home Consumer Resources

Guides and forms:

HUD Resources for Installation and Setup

HUD Guide to Permanent Foundations

HUD Form 305: HUD Manufactured Home Retailer Report — Home Tracking Information

HUD Form 306: HUD Manufactured Home Retailer Report — Home Installation Information

HUD Form 307: HUD Manufactured Home Installer License Application

HUD Form 309: HUD Manufactured Home Installation Certification and Verification Report
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Glossary

G1. Types of housing

Factory-built and prefabricated housing: The distinguishing factor for factory-built housing versus site-built housing is 

whether the components of the construction took place at the location of the permanent foundation. A factory-built home 

includes significant structural components built away from the permanent foundation, while the components of a site-built 

home are constructed at the same location as the permanent foundation. 

Manufactured home: Manufactured homes often get mislabeled or confused with several other types of factory-built homes 

designed for long-term residential use. Factory-built housing is a generic term for a housing product characterized by most 

or all components of a housing unit constructed at an industrial facility. Manufactured homes are unique among all types of 

prefabricated housing because they are the only type of housing designed, built, and installed under federal building codes. 

Other prefabricated housing, such as panelized and modular homes, have a variety of state and local building codes to meet. 

Manufactured homes consist entirely of factory-built units, and nearly all components are constructed at the manufacturing 

plant rather than on-site. Once the bulk of the home’s assembly is complete at the factory, workers transport one or more units 

of the home and install it at the building site. 

Mobile home: The use of the terms “mobile home” and “manufactured home” is sometimes interchangeable. A mobile home 

technically is a factory-built home constructed prior to the 1976 establishment of the HUD Code. Before the HUD Codes, state 

and/or local jurisdictions manufactured mobile homes to their building standards. Mobile homes grew out of an evolution 

within the travel trailer industry as recreational trailers were adapted and upgraded for long-term residential use. Prior to the 

adoption of the HUD Code in 1976, mobile homes were not regulated by the federal government. In addition, despite their 

design for long-term residential use, mobile homes were viewed by state and local governments as personal property, 

not real property, and their construction lacked the same level of supervision and regulation as site-built homes. The absence 

of government regulation combined with their low cost led to a perceived — although not always warranted — lower level 

of quality, and mobile homes became stigmatized and stereotyped as inferior and undesirable housing. 

Concentrations of manufactured housing in residential communities or “parks” reinforced this negative perception, even 

though most units are outside these communities.

Modular home: The construction of modular homes takes place at a factory in multiple three-dimensional boxes or 

modules. Upon completion, an authorized third-party inspector inspects and certifies the home so it’s in compliance with 

the appropriate state and/or local building standards. These components transfer to the intended site of use so they can join 

together upon a foundation. The difference between modular homes and manufactured homes is that they are built to state 

and/or local codes rather than a federal building code. The construction of modular homes happens in sections at the factory 

with almost all exterior and interior components of the modules completed at the factory. Modular homes may be constructed 

with or without a permanent chassis, and the construction of the installation on permanent foundations is in accordance with 

state and/or local building codes.

Off-site construction: The planning, design, fabrication, and assembly of building elements at a location other than the final 

installed location to support the rapid and efficient construction of a permanent structure. Such building elements may be 

prefabricated at a different location and transported to the site or prefabricated on the construction site and then transported 

to their final location. Off-site construction is characterized by an integrated planning and supply chain optimization strategy. 
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Panelized and pre-cut homes: Panelized houses consist of factory-built sections. The “panels” are large wall sections that are 

partially or fully completed in a factory. They are the structural foundation of the house. Typically, the panels include windows, 

doors, wiring, and outside sheathing, but they can also produce “turn-key” sections with all components, exterior siding, and 

interior drywall and finishes completed. Once the panels are inspected at the factory, workers transport them to the building 

site for assembly. Like modular or factory-built housing, panelized homes must meet applicable state or local building codes. 

Pre-cut homes are essentially kit homes. All of the building materials are cut to specifications and assembled at the factory. 

Once completed, the panels are put into a “kit” and shipped to the home site for assembly. They are subject to the same 

building code requirements as panelized homes.

G2. Manufactured home terminology

Certificate of occupancy: Issued by the local or state building department certifying that the manufactured home has 

been installed properly and the conditions of the permit application have been fulfilled. In some states, the signed permit is 

considered approval to occupy.

Certification of installation: Certification that is provided by an installer under the HUD-administered installation program. 

It indicates that the installation of the manufactured home is in compliance with the appropriate design and instructions and 

meets inspection.

Consumer complaints: HUD has entered into cooperative agreements with 38 state governments to respond to consumer 

complaints about the performance of manufactured homes. These state governments each designate a SAA. 

Features Manufactured Modular Site-built Panelized

Nearly completed at the factory X X

A truck transports the material and 

components in stacks to the home site X X

Built on a steel frame with wheels X

Often comes in two halves that 

merge at the home site X X

Usually built or set on a permanent 

foundation X X X

Largely constructed at the home site X X

Often purchased from a retailer X

Typically purchased through 

a homebuilder X X X

Typically financed with a mortgage X X X

Table 1: Features associated with different types of housing
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Delivery: The transport of the home from the retailer or manufacturer location to the home site.

Design Approval Primary Inspection Agency (DAPIA): A third-party independent agency that approves manufactured home 

engineering specifications and designs and ensures the design documents are in compliance with the Federal Manufactured 

Home Construction and Safety Standards (FMHCSS).

Distributor: Any person engaged in the sale and distribution of manufactured homes for resale.

Engineer’s certification: A document issued by a certified professional engineer verifying that a foundation system meets the 

requirements of HUD’s Permanent Foundation Guide for Manufactured Homes. 

Factory: The manufacturing plant that constructs the home in accordance with HUD codes and under HUD inspections.

Factory-built home: A dwelling unit fabricated in an off-site manufacturing facility and installed at a building site. 

FHA: The Federal Housing Administration within the U.S. Department of Housing and Urban Development.

Foundation: The term “foundation” means all components of the support and anchoring system. These components 

include piers, footings, slabs, walls, ties, anchoring equipment, or any other material that supports a home and secures it 

to the ground. The steel frame and chassis itself affords the manufactured home a solid foundation that supports the home 

during transport from factory to site. Lenders and state building agencies require a permanent foundation in order for the 

manufactured home to be considered and taxed as real estate.

Foundation system: An engineered prefabricated assembly of materials designed to work with the manufactured home to 

resist the effects of external forces on the manufactured home.

Grade: The finished ground level adjoining the manufactured home at all exterior walls.

HUD: U.S. Department of Housing and Urban Development, the agency of the federal government responsible for national 

building code enforcement in manufactured housing.

HUD-administered installation program: A program that is administered by HUD in those states that do not have a qualifying 

installation program.

HUD Code: The HUD Code is administered by the U.S. Department of Housing and Urban Development (HUD) and regulates 

the design and construction of manufactured homes. The HUD Code is preemptive, meaning it takes precedence over 

local building codes. Every HUD home has a special label affixed on the exterior of the home indicating that the home has 

been designed, constructed, tested, and inspected to comply with the stringent federal standards set forth in the code. No 

manufactured home may be shipped from the factory unless it complies with the HUD Code and receives a certification label 

from an independent third-party inspector.

HUD label: This is a 2" x 4" aluminum insignia plate that is attached to the lower rear corner of each transportable home 

section. The HUD label identifies the manufacturer, the date of manufacture, and location to which the home was shipped. 

Most lenders will require proof of the HUD label number.

Installation: The process of stabilizing, supporting, anchoring, and closing up a manufactured home and joining sections of a 

multi-section manufactured home. 
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Installation defect: Any flaw in the performance, installation, installation components, installation material, or close-up of 

a manufactured home that renders the home, or any part thereof, not fit for the ordinary use for which it was intended or 

otherwise takes the home out of compliance with the Manufactured Home Construction and Safety Standards.

Installation design: An industry term for plans, specifications, sketches, and the related engineering calculations, tests, and 

data in support of the installation configurations and systems incorporated in the installation of manufactured homes.

Installation instructions: DAPIA-approved instructions the home manufacturer provides that accompany each new 

manufactured home and outline the manufacturer requirements for support and anchoring systems and other work 

completed at the installation site.

Installation standards: The standards governing the installation of a manufactured home. These are either HUD’s minimum 

standards or the state standards that HUD has determined provide protection to the residents of manufactured homes by 

being equal to or exceeding the protection the federal standards provide.

Installer: The person or entity who is retained to engage in, or who engages in, the business of directing, supervising, and 

controlling the installation, or correcting the initial installation of a manufactured home.

Installer’s license or installation license: The evidence that an installer has met the requirements for installing manufactured 

homes under the HUD-administered installation program. The term does not incorporate a state-issued installation license or 

certification. The term does not imply that HUD approves or recommends an installer or warrants the work of an installer and 

should not be used in any way that indicates HUD approval.

Live loads: Loads produced by the use and occupancy of the building or other structure. They do not include construction 

loads or environmental loads, such as wind load, snow load, earthquake load, flood load, or deck load.

Manufactured home: See “G1. Types of housing.”

Manufacturer: Any person engaged in manufacturing or assembling manufactured homes, including any person engaged in 

importing manufactured homes for resale.

Manufacturer’s certification label: The permanent label affixed to each transportable section of each manufactured home as 

required.

Manufacturer’s Statement of Origin: A document prepared by the factory that creates a chain of ownership.

Mobile home: See “G1. Types of housing.”

Modular home: See “G1. Types of housing.”

Multi-section: A manufactured home built in individual sections in which each section with its own frame and chassis is joined 

together upon delivery at the installation site. It is also known as a “double-wide” (two sections), “triple-wide” (three sections), 

or “quad” (four sections). A “double-wide with a tag” is a double-wide manufactured home that has a third section that is 

considerably shorter in length.

Options: Features a manufacturer offers at the buyer’s discretion for comfort, convenience, or ambiance. 
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Pads: The footer on the ground upon which a pier is set. It spreads the load from the supported home over a larger area and 

thereby provides a more stable base. The square pads/footers may be poured or pre-cast concrete, wood, or other materials 

approved by the local building authority. The piers typically are spaced 5 to 10 feet apart depending on home design, local soil 

characteristics, and roof snow load. Spacing and load requirements are in the manufacturer’s installation instructions that ship 

with each new manufactured home.

Penetrometer: An instrument for measuring the firmness or consistency of the soil. The allowable bearing capacity of the soil 

is a measure of its strength and ability to carry the weight of the pier without settling or compressing. On new manufactured 

home installations, pads for piers should be set on compacted or undisturbed soil. Organic or loose matter, such as weeds, 

trash, and other objects, must be cleared away and then the area for the pad scraped until solid, undisturbed soil is exposed to 

prevent uneven settlement.

Percolate: The measurement of the land’s ability to absorb water. It is used to determine provisions for a sanitation system and 

drain field.

Permanently affixed: When referencing real property, it is the manufactured home legally attached to the land, thus 

becoming a fixture.

Permits: City or county authorization to install homes, sewage disposal systems, electrical connections, outbuildings, etc.

Personal property: A manufactured home is considered personal property unless the owner of the manufactured home 

permanently affixes the home to land also owned by them. Learn more about state requirements at fanniemae.com/mhtitling.

Piers: Stanchions of masonry or steel that provide support between the footing pad and the main steel beams of the 

manufactured home. The manufacturer’s installation instructions stipulate the number and placement locations depending on 

size and weight-bearing capacity.

Pit set, low profile, subterranean set: This is the excavation of a home site to allow the home to have a residential, lowprofile look. This type of installation is more common in areas of the country without significant rain or snow, such as southern 

California. This type of installation requires a full perimeter foundation. Moisture prevention measures are recommended for 

this type of installation.

Plot plan: A detailed scale drawing of a home site showing the location of a home, outbuildings, and septic system as well as 

setbacks and dimensions. It is usually required to obtain home placement permits.

Professional engineer (PE) or registered architect (RA): A person licensed to practice engineering or architecture in a state. 

They are subject to all laws and limitations imposed by the state agency that regulates the applicable profession. They are 

engaged in the professional practice of rendering service or creative work requiring education, training, and experience in 

architecture or engineering sciences and the application of special knowledge of the mathematical, physical, and engineering 

sciences in such professional or creative work as consultation, investigation, evaluation, planning or design, and supervision of 

construction for the purpose of securing compliance with specifications and design for any such work.

Purchaser: The first person purchasing a manufactured home in good faith for purposes other than resale.

Qualified trainer: A person who has met HUD requirements to provide training to installers for purposes of the HUDadministered installation program.

Qualifying installation program: A program that is certified as meeting the requirements of 42 U.S.C. 5404(c)(3).
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Real property: A term usually applied to real estate, homes, and other structures permanently attached to land.

Re-level: Manufactured homes that are installed using piers and pads sometimes “settle” and become unlevel after initial 

leveling. Often the retailer will return to re-level the home after allowing time for settling. 

Retailer: A company licensed and bonded with the appropriate local and state authorities and holding an agreement with 

the manufacturer(s) to sell manufactured homes.

Septic design: A plan drawn by a licensed septic contractor and approved by the local health department that shows the 

type and location of a septic tank and drain field on a piece of property.

Setback: The minimum distance between the property line and a home or building as required by building code and/or 

zoning regulation.

Setup: Also called installation. It is the final stage in the construction of the home that is completed on-site. On-site workers 

join sections, complete roofing, finish surfaces, paint exterior trim, install carpeting, level the floor and frame, and connect 

utilities.

Shear wall: A general term for walls that are designed and constructed to resist racking from seismic and wind forces with 

masonry, concrete, cold-formed steel, or wood framing.

Single section: Also known as a “single-wide,” this is a home that is built, delivered, and installed as one complete unit. 

Depending on individual state requirements, they can be in widths of 14, 16, or 18 feet. The maximum lengths are subject 

to highway permit restrictions.

Site: The property location or address at which a manufactured home is installed.

Site-built structures: Structures constructed on-site that are subject to local building codes.

Site preparations: The construction required prior to the installation of the foundation and manufactured home.

Skirting: Materials used to enclose the foundation and crawl space beneath a home. This parameter may be concrete block, 

pressure-treated wood, matching wood siding, or other building products, depending on the application needs and zoning 

codes.

Snow load: The specification for the roof’s load-bearing weight. Manufacturers usually offer a 20-pounds-per-square-foot (psf) 

load-bearing roof as a standard specification, but upgrades to 30 psf, 40 psf, and more are available.

Vapor retarder: A continuous polyethylene sheet at least 6 millimeters thick. It is placed on the ground to minimize moisture 

accumulation under the home. The vapor retarder impedes moisture from the ground from entering the crawl space.

Wind zone map: A map of the United States showing the three levels of expected wind severity that affect the specifications 

for the design and construction of manufactured homes. In 1994, HUD wind and storm regulations were amended to require 

manufacturer compliance with specific standards of construction in designated storm-susceptible regions of the country. 

The more stringent requirements are for homes placed in Wind Zone 3, which includes the Gulf and Atlantic coast areas of 

the country.
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Publication Bibliography

American Planning Association (2001): APA Policy Guide on Factory Built Housing. 

California Coalition for Rural Housing (2010): Affordable Manufactured Housing Best Practices: Opportunities for California 

Affordable Housing Developers. Revised 2/26/2010.

California Health and Safety Code (1980): Manufactured Housing Act of 1980. 

Fannie Mae (2020): High-Quality Housing at an Attainable Price.

Federal Housing Finance Agency (2020a): FHFA House Price Index (HPI) Quarterly Report — 2020Q2 & June 2020. 

Federal Housing Finance Agency (2020b): FHFA House Price Index (HPI) Quarterly Report — 2020Q3 & September 2020.

Joint Center for Housing Studies of Harvard University (2002): An Examination of Manufactured Housing as a Community- and 

Asset-Buiding Strategy. 

Joint Center for Housing Studies of Harvard University (2019): The State of the Nation’s Housing 2019. 

Joint Center for Housing Studies of Harvard University (2020): The State of the Nation’s Housing 2020. 

Manufactured Housing Institute (2021): 2021 Manufactured Housing Facts: Industry Overview. Updated May 2021.

National Association of Realtors (2020): U.S. Economic Outlook: August 2021. 

U.S. Census Bureau: Manufactured Housing Survey: MHS Latest Data. Accessed March 2021. 

U.S. Department of Housing and Urban Development (1996): Permanent Foundations Guide for Manufactured Housing.

U.S. Department of Housing and Urban Development (2007): Factory-Built Construction and the American Homebuyer: 

Perceptions and Opportunities. 

U.S. Department of Housing and Urban Development Office of Policy Development and Research (2011): Regulatory Barriers to 

Manufactured Housing Placement in Urban Communities.