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TABLE OF CONTENTS Introduction .......................................................................................................................................... 4 Myth 1

MODULAR/MANUFACTURED HOMES AREN’T SAFE ............................. 6

Myth 2

THEY’RE NOT ENERGY EFFICIENT .................................................................... 8

Myth 3

THEY QUICKLY DEPRECIATE IN VALUE .......................................................... 12

Myth 4

THEY LACK LONGEVITY ........................................................................................ 14

Myth 5

THEY DON’T MEET QUALITY STANDARDS .................................................. 18

Myth 6

THEY’RE ESSENTIALLY MOBILE HOMES ON TRAILERS ......................... 22

Myth 7

THEY’RE TOUGH TO FINANCE ............................................................................ 24

Myth 8

THEY’RE FOR PEOPLE WITH LOW INCOMES ............................................. 26

Myth 9

THEY’RE BAD FOR THE ENVIRONMENT ....................................................... 30

Myth 10

THEY REQUIRE EQUAL CONSTRUCTION TIME ......................................... 32

Myths Busted ...................................................................................................................................... 34

TOP 10 MYTHS ABOUT MODULAR AND MANUFACTURED HOMES…BUSTED! When it comes to buying a place to live, there are many myths that keep people from considering all the possibilities – specifically around modular and manufactured homes. The persistence of these myths has given this type of housing a bad reputation, but this eBook will set the record straight. Plus, manufactured and modular housing has improved significantly in the past three decades as builders face higher standards for construction and use better finishing materials (carpet, flooring, appliances, etc.). Today, this variation of new construction is an excellent option for home buyers, in terms of features, location, price, and quality. Let’s take a look at the top 10 myths surrounding modular and manufactured homes. As we address each, we’ll consider the facts and figures that prove modular and manufactured homes are a viable alternative for many home buyers.

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MODULAR/MANUFACTURED HOMES AREN’T SAFE

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MYTH 1: MODULAR/MANUFACTURED HOMES AREN’T SAFE This safety issue is perhaps the most common myth surrounding modular and manufactured homes. When most people think about manufactured homes, images of Dorothy’s home in The Wizard of Oz immediately come to mind. Many people envision cheap homes that can be easily picked up and whirled around in a tornado, like a child’s toy.

FACT: MODULAR/MANUFACTURED HOMES ARE JUST AS SAFE AS THE ALTERNATIVES The strength and stability of site-built homes is due to the concrete foundations they are built on. Today, modular and manufactured homes are also built on similar concrete foundations, so they also offer the safety and security people expect in site-built homes. It is time to get away from the concept of modular and manufactured homes as some sort of rickety structure resting on wheels or propped up on cinderblocks. The fact is, modular and manufactured homes are no more prone to fires, storms, tornadoes, or any other natural disaster than site-built homes.

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THEY’RE NOT ENERGY EFFICIENT

MYTH 2: MODULAR/MANUFACTURED HOMES ARE NOT ENERGY EFFICIENT Energy efficiency and “being green” are important features of homes today. Not only are homeowners today more environmentally conscious, but they are also interested in giving their wallet a break. Heating and cooling costs represent the biggest annual expense for any homeowner (aside from the mortgage). Energy prices have been extremely unstable in recent years, driving up utility bills for millions of homeowners. Home builders have responded to increasing demand for energy savings by building homes with more energy-efficient materials and offering cost-saving appliances, fixtures, and windows.

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ALL HOMES ABIDE BY THE SAME ENERGY EFFICIENCY STANDARDS These “home builders” include manufacturers of modular and manufactured homes. The U.S. Department of Housing and Urban Development (HUD) has developed strict guidelines for energy efficiency in modular and manufactured housing, and home builders construct each residence to meet or exceed those guidelines laid out by HUD and the International Energy Conservation Code. Examples of these include: • Increased insulation to prevent drafts • Tightly-sealed air ducts to improve the flow of warm and cold air • Properly installed energy-efficient windows to help regulate indoor temperatures Modular and manufactured homes are built to meet or exceed energy efficiency guidelines so home buyers can conserve on their utility costs and decrease their carbon footprint.

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THEY QUICKLY DEPRECIATE IN VALUE

MYTH 3: MODULAR/MANUFACTURED HOMES QUICKLY DEPRECIATE IN VALUE Homes are often purchased as a vehicle for investment. One of the reasons people buy homes is to build equity, which is returned when it is sold in the future. Site-built homes are often viewed as a better investment than modular/manufactured homes, in the eyes of homeowners, because of the perception that these are higher quality structures. However, all homes are affected by the same factors that impact value, both now and in the future.

FACT: MODULAR/MANUFACTURED HOMES HOLD VALUE AND APPRECIATE When you buy a home, the value is determined not just by the physical structure itself, but also by the housing market, location, initial purchase price, age, inflation rate, comparable homes in the neighborhood, and available space in the area. These factors impact all types of homes in a similar fashion. Modular homes hold value and appreciate over time just as well as site-built homes because they rest on permanent foundations and undergo minimal expansion. Though it is more difficult to add-on to or expand modular/manufactured homes, the original structure will gain value.

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THEY LACK LONGEVITY

MYTH 4: MODULAR/MANUFACTURED HOMES LACK LONGEVITY This myth is probably the easiest one to bust. When home builders begin construction on a site-built home, the concrete, wood, and other materials are delivered to the site by local and national suppliers. Few people would ever suggest that low-quality concrete or cheap timber is used in the construction of site-built homes, yet this myth seems to be widely applied to modular and manufactured homes.

A RECIPE FOR SUCCESS Modular and manufactured home builders construct each unit using the same quality construction materials that on-site home builders use. From the foundational concrete to the 2x4s and roof shingles, home builders acquire supplies from many of the same sources when building modular and manufactured homes. On top of that, all modular and manufactured homes are built inside climate-controlled environments where quality control is the number one priority. While site-built homes expose materials to the elements, modular/manufactured homes are protected inside construction facilities.

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QUALITY MATERIALS + CLIMATE-CONTROLLED

ENVIRONMENTS

= LONGEVITY

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THEY DON’T MEET QUALITY STANDARDS

MYTH 5: MODULAR/MANUFACTURED HOMES DON’T MEET QUALITY STANDARDS If you’ve ever had a new home built or tried to renovate your current site-built home, you are no doubt aware that there are a number of construction standards that must be met and safety inspections that have to be completed. For example, doorways must meet minimum width requirements. Safety inspections must be completed to ensure electrical and plumbing infrastructures are properly routed and insulated.

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FACT: MODULAR/MANUFACTURED HOMES ARE HELD TO THE SAME STANDARDS Modular and manufactured home construction is no exception. These structures have to meet a variety of construction standards and undergo safety inspections. Some of those codes and standards pertain to:

• Fire resistance • Energy efficiency • Strength • Durability

Safety inspections are conducted when modular and manufactured homes are delivered to sites. Once on site, inspectors ensure that connections to local electrical grids and water systems are up to code and safe for occupants.

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THEY’RE ESSENTIALLY MOBILE HOMES ON TRAILERS

MYTH 6: MODULAR/MANUFACTURED HOMES ARE ESSENTIALLY MOBILE HOMES ON TRAILERS Modular and manufactured homes are nothing like the tow-behind RVs you see rolling down the highway or the homes stationed in mobile parks. These homes can be built to customer specifications, with various floor plans, amenities, and features available that mirror those offered by site-built housing.

FACT: THESE HOMES ARE NOT A COOKIE-CUTTER HOUSE ON WHEELS When you work with a modular home building specialist, you have the option to select the floor plan that works for your family, add amenities and appliances to upgrade your home, and even have garages connected to your home at the site. Manufactured homes, on the other hand, are not as flexible, but can still be customized to fit your lifestyle with varying floor plans. Most importantly, modular and manufactured homes are NOT delivered on wheels and parked at a site. Manufactured homes can be set on concrete or permanent foundations, and skirting is added, which gives your home a look and feel very similar to a site-built home. Modular homes, too, can be set on concrete foundations that allow for crawl spaces and even full basements below.

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THEY’RE TOUGH TO FINANCE

MYTH 7: MANUFACTURED HOMES ARE TOUGH TO FINANCE When you purchase a modular or on-site home, you have a number of financing options available. If you wish to seek financing from a bank, savings association, or credit union, you can do so in the same fashion you would when buying a site-built home. For those with a troubled financial background, many home retailers have connections with banks and lending institutions that help homebuyers secure the financing they need to purchase a modular home.

DIFFERENT, NOT MORE DIFFICULT Manufactured homes are treated slightly differently by lenders than modular and site-built homes. Banks and other lenders place manufactured homes in a separate lending category, but that doesn’t make financing more difficult to get. Manufactured home buyers have to obtain what is called a chattel mortgage, which has different interest rates and terms than traditional mortgages.

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THEY’RE FOR PEOPLE WITH LOW INCOMES

MYTH 8: MODULAR/MANUFACTURED HOMES ARE FOR PEOPLE WITH LOW INCOMES This myth is, simply put, exceptionally inaccurate. Like many of the other myths we’ve covered, this one can be tied back to the myth of modular and manufactured homes as “cheap”. Contrary to popular belief, modular and manufactured homes are priced comparably to site-built homes; which means that these homes are not simply a last resort for those who cannot afford a site-built home, or low-income people.

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FACT: MODULAR/MANUFACTURED HOMES AREN’T “CHEAP” Home buyers do not select a modular or manufactured home because it is cheap, but rather, because they have a wider selection of customization options and flexibility (and it is much more convenient than the site-building process). If you were to purchase an existing site-built home, you have no ability to add rooms, adjust the layout, or change fixtures without added expenses, which happen post-sale. Deciding to newly construct a site-built home allows you the opportunity to make these changes, but at a much higher cost and time investment. Purchasing a modular or manufactured home allows you the freedom to make these changes to the home before it is built. Not only do you have the freedom to make these changes, but the added costs are reasonable, and can be worked into the purchase price. Modular and manufactured homes are affordable and convenient, but not cheap – in terms of price or quality.

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THEY’RE BAD FOR THE ENVIRONMENT

MYTH 9: MODULAR/MANUFACTURED HOMES ARE BAD FOR THE ENVIRONMENT People generally believe this myth exists because they envision modular and manufactured homes being hastily constructed with leftover materials being wastefully thrown away. This is not the case.

FACT: MODULAR/MANUFACTURED HOMES ARE BETTER FOR THE ENVIRONMENT Modular and manufactured homes are built in construction facilities that mirror that of an automobile assembly line. Homes are constructed in pieces using methods that produce significantly less construction waste in the process. Large-scale home manufacturers are able to accurately estimate the amount of materials required for each new home because similar construction methods, materials, and layouts are often used. Furthermore, the use of advanced computer-aided design and manufacturing control systems allow for pinpoint accuracy when constructing components, which virtually eliminates wasteful mistakes.

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THEY REQUIRE EQUAL CONSTRUCTION TIME

MYTH 10: MODULAR/MANUFACTURED HOMES REQUIRE EQUAL CONSTRUCTION TIME Modular and manufactured homes are built in their entirety in construction facilities, loaded onto flatbed trucks, delivered, and installed on site in a manner of weeks. Seasonal demand can increase the amount of time it takes to complete and deliver a home, but even during periods of peak demand it can be faster to build these homes.

A STREAMLINED CONSTRUCTION TIMELINE Once these homes are delivered to the site and installed, they are ready to live in. Site-built homes, on the other hand, can take weeks, if not months, to complete. Construction materials are delivered throughout the process, when they are needed rather than in bulk before construction begins, as in the construction of modular/manufactured homes. This can result in delays that push back the completion date on the home. On top of that, weather and inspections can further delay the construction process of site-built homes.

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MYTHS BUSTED

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MYTHS BUSTED! When it comes to meeting your needs and wishes as a homeowner, modular and manufactured homes offer the flexibility to create a place to live that supports and enhances your family’s lifestyle. On top of that, today’s modular and manufactured homes are built to meet and exceed exacting standards set by the U.S. government to ensure safety and quality in the structure. These structures provide a place you can call home – and you can put it anywhere you want, and have it move-in ready in a short period of time. As you look for a new home, consider all of your options - and keep the facts listed above in mind. Before dismissing a modular or manufactured home as an inferior structure, remember that many of the myths about these structures are simply not true. If you’d like more information about modular or manufactured homes, contact one of our home specialists.

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