How Buying & Selling Manufactured Homes By Owner Works
Manufactured and mobile home transactions are different from traditional real estate. Here's what you need to know.
For Buyers: Step-by-Step
Identify the Home Type
There are three categories: HUD-code manufactured homes (built after June 15, 1976 with a red HUD certification label), modular homes (built to state/local codes, treated as real property), and pre-1976 mobile homes (harder to finance and insure). Always verify the HUD data plate before purchase.
Check the Title Status
Is the home titled as a vehicle (personal property) or as real property (real estate)? Real property homes are easier to finance with conventional mortgages. Vehicle-titled homes use chattel loans or FHA Title I. Your state guide explains the difference.
Understand the Land Situation
On owned land: the home and land can be purchased together and financed as real property. In a park: you own the home but rent the lot. Review the park lease carefully — look for rent increase provisions, park rules, and restrictions on selling.
Line Up Financing
Options include: FHA Title II (mortgage for real property homes, 3.5% down), FHA Title I (chattel loan, up to $69,678 for a home only), conventional loans for real property, and chattel loans from specialty lenders like 21st Mortgage and Vanderbilt Mortgage.
Negotiate and Make an Offer
Use a written purchase agreement or bill of sale. For park homes, verify the park manager's approval process for new residents. Some parks have age restrictions, pet policies, or income requirements.
Due Diligence
Always get a professional home inspection. Order a title search to uncover liens. Verify the home's HUD compliance labels are present. Check that the VIN/serial number matches the title. Confirm the park lease terms if applicable.
Close the Sale
For vehicle-titled homes: sign a bill of sale and transfer the certificate of title at the DMV or equivalent state agency. For real property homes: close with a title company or attorney, record the deed. Pay applicable transfer taxes and recording fees.
For Sellers: What to Prepare
Gather your documents: Certificate of title (or deed if real property), HUD data plate or certification label information, any warranties, permits for additions, and the park lease if applicable.
Price it right: Research comparable sales in your area. Park-sited homes typically sell for less than land-home combinations. Condition, age, size, and lot fees all affect value. Check listings on MHVillage for comparable pricing.
Disclose known issues: Most states require disclosure of known material defects. Be transparent about the home's age, HUD status, any roof repairs, plumbing issues, or foundation condition.
Notify the park: If the home is in a park, notify park management of your intent to sell. The buyer may need to apply for park residency. Some parks have a right of first refusal.
Transfer the title: For vehicle-titled homes, sign the back of the title and submit the appropriate transfer forms to your state DMV or equivalent agency. For real property, work with a title company.
Key Terms Explained
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MHVillage
Browse thousands of manufactured & mobile home listings. The nation's largest marketplace.
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Financing for manufactured & mobile homes — FHA, chattel, and land-home loans. A top national lender.
Explore financing →Vanderbilt Mortgage
Manufactured home loan programs including FHA Title I & II, and flexible chattel options.
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