Manufacturers

There are seven companies building manufactured homes in eleven factories in California. Additionally, ten CMHI member companies ship homes into California from factories in neighboring states. Manufacturing and retail sales of new manufactured homes added over $1 billion to the California economy during 2005. 10,783 new manufactured homes were delivered in California during 2005.

Under California law, new personal property (non-real estate) manufactured homes must be sold by a retailer licensed by the Department of Housing and Community Development. These professionals must routinely complete certified continuing education programs. Retailers typically control the subcontracting functions related to installing the home on the lot of the homebuyer's choice. Some homes are sold from sales centers owned and operated by the retailer. Others are sold from a model center located at a land-lease community or subdivision. Many retailers will provide a custom manufactured home on a lot already owned by a consumer or help the prospective homeowner find a suitable lot.

Some retailers specialize in the sale of existing manufactured homes. Since few manufactured homes are ever moved once delivered to an original foundation site, manufactured homes, even in land-lease communities, are sold on site and the space lease is I n d u s t r y P r o f i l e transferred to the new homeowner. Estimated sales of existing manufactured homes surpassed 52,000 in 2005.

Financial Institutions

A number of California financial service companies and their branch offices have loan programs for manufactured homes. These institutions include banks, savings banks, credit unions, mortgage companies and commercial finance companies. These companies provide all types of consumer, conventional and government-backed financing for manufactured homes.

A common method of financing manufactured homes is through a retail installment contract. This can be arranged through the retailer or by the homebuyer directly with the financial institution. Terms range from 15 to 30 years.

Conventional real estate mortgages are also available for manufactured homes when they are affixed to real property. 31% of the industry's sales were financed as real property in 2005. Manufactured homes are eligible for insurance under government backed programs offered by the Federal Housing Administration (FHA), the Veterans Administration (VA) and the Farm Home Loan Administration (FmHA). Further, the Federal Home Loan Mortgage Corporation will buy loans backed by manufactured home real estate.