The True Origin of The Mobile Home

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Mobile Home Origins

So you think you know how Mobile homes came to be called such? Easy, Right? Because they can be moved from place to place, hence a home that is Mobile. Mobile Homes.

Well, this is actually a common misconception.

According to snopes dot com, “The origins of the mobile home are tied to the end of World War II. The rapid downsizing of the U.S. armed forces after the surrenders of Germany and Japan in 1945 brought back millions of servicemen (and servicewomen) to the United States from overseas in the mid-1940s, many of whom were coming of age and anxious to establish their independence, attend college, get married, and raise children. This demographic bulge, coupled with America’s burgeoning post-war recovery from the Great Depression and a wartime economy, created an unprecedented demand for housing — both for standard residential units and for quarters to accommodate the many servicepeople who were taking advantage of G.I. Bill benefits to complete their educations at colleges, universities, and other types of schools.

The widespread use of military-style prefabricated housing eased the severe housing shortgage temporarily, and the eventual creation of suburbs such as Levittown took care of much of the long term need, but neither of these solutions addressed a potentially lucrative marketing niche — people who were dissatisfied with living in barracks-like housing but didn’t want to (or couldn’t) wait years for the construction of affordable suburban housing. It was James and Laura Sweet, a couple from Prichard, Alabama, (a town just outside of Mobile) who came up with the concept that fulfilled that market niche.

James Sweet, a machine shop supervisor by trade, was reportedly finishing off his workday lunch one afternoon in January 1946 when a newspaper article about the post-war housing shortage caught his eye. What if, he thought, someone could manufacture a type of housing that could be put together cheaply and quickly at a central location, but was small and light enough to be transported to wherever the purchaser wished to locate it? Something like the prefabricated structures of the era, but much nicer and more home-like — a prefab housing unit divided into discrete rooms (rather than one large open space) with all the electrical and plumbing fixtures already in place. They could be built as one- or two-piece units, then loaded onto flatbed trucks and delivered wherever the purchaser desired.

Sweet’s wife, Laura, was a commercial artist who did illustrations for magazines, and she drew up a few simple floor plans according to her husband’s directions. James Sweet built a couple of prototype units in his off-work hours to prove his concept viable, and then, satisfied with the results, used the couple’s savings, mortgaged their home, and borrowed against his life insurance to establish Sweet Homes, a company dedicated to the manufacture and sale of prefabricated  homes.

National advertising was still something of a rarity in the 1950s, but as the new national highway system enabled the sale of prefabricated homes to spread outwards (mostly to the north and west) from the Alabama/Mississippi area, more and more consumers were exposed to the houses, liked them, and began clamoring for their own “Mobile homes.” Business boomed, more manufacturers entered the fray, and factories were established all over the U.S. to better serve local customers. Eventually whole communities of these types of homes were created all across the country, populated by homeowners who preferred them to more expensive and more closely-quartered suburbs full of site-built housing.

Over the years, however, as the generation who fought World War II aged and prefabricated homes became commonplace throughout the U.S., newer consumers were unaware that the appellation “Mobile home” was a geographic reference, a term coined in acknowledgement of the area in which the industry got its start. The name was more and more frequently rendered as a common compound noun (“mobile home”), leading many to mistakenly conclude that it referred to houses that were “mobile” — that is, movable from place to place. While “mobile homes” can indeed be transported, they are of course far from mobile — in the vast majority of cases they are never moved off the sites to which they are originally trucked. (Most “mobile homes,” once situated, are moved again only if their owners replace them with newer models, or if they have to be removed because the land on which they sit has been converted to other uses.)”

And now you know the true origin of the Mobile Home.

go to snopes dot com for further information and literary citations.

Mobile Home Loans in the Economic Recovery

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Mobile Home Loans in the Economic Recovery

In the current economic recession, it seems like the average American is able to afford less and less.

These unfortunate circumstances have placed affordable housing in quite high demand. It’s no surprise now that manufactured homes and mobile homes are paving the way when it comes to reasonably priced housing. With this increased demand, there will be more and more Americans living in factory built homes. As ownership of manufactured and mobile homes has increased, so has the demand for Mobile Home Loans.

At the introduction of manufactured and mobiles to the housing market, most of the average mortgage banks were uninteresed in offering Mobile Home Mortgages. Most mortgage banks lumped Mobile home loans in the same category with car or vehicle loans. Much like vehicles, manufactured and mobile homes were thought to quickly depreciate in value, unlike a traditional stick-built home or condo that typically sees equity gaining over time.

Due to the lack of equity appreciation, for many years it was improbable that a manufactured or mobile home refinance or equity loan would be made available to owners of factory built homes at all.
As time went on, home values skyrocketed faster than general income could keep up with. The depreciation of manufactured and mobile home owner’s equity started to slow down.  Eventually the equity losses  stopped altogether. Manufactured and mobile homes soon were actually increasing in equity, in part due to the increasingly superior quality and safety of manufactured and mobile housing, coupled with federal and state laws governing the factory-built process.  While mobile home owners invested in their homes and continued to maintain and improve them, they gained precious equity.

Today, rate-and-term mobile home refinance loans and cash-out equity loans have become readily available to eligible owners of manufactured or mobile homes. It has become reasonably easy to locate what was considered “non-traditional” and even undesirable financing for manufactured or mobile homes.

As the current real estate market begins to recover, the manufactured and mobile home market endures the same loss of value as the “stick-built” and condominium homes. In the midst of the recovery, manufactured and mobile homes still remain viable for financing at terrifically competitive interest rates. These loans should be eligible for rate-and-term refinancing in the not-too-distant future and perhaps even “cash-out” equity loans in the somewhat-near-future.
There was a time when a manufactured or mobile home loan was frowned upon as a mere “car loan”.
Those days have long passed as manufactured and Mobile Homes have emerged as the last affordable housing in America with competitive financing available to qualified buyers.

“Did you Know?” Mobilehome Edition

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beautiful mobile home

Did you know… ?

if a manufactured home was built after September 1, 1958., alterations to the electrical, plumbing, or mechanical systems of a manufactured home require a permit and inspection from the Department of Housing and Community Development regardless of where the home is located.

Did you know… ?

a community park manager or management association must obtain permission from HCD or the local enforcement agency to move lot lines for individuals residing in the park, after obtaining a homeowner’s approval and meeting other requirements. See Title 25 California Code of Regulations section 1104(d) here.

Did you know… ?

the rules and regulations of a mobile home park must be given to the resident at the time of application for tenancy and with new leases/extensions. There is no requirement to post the park rules, however.

Did you know… ?

Mobile Home park management can require homeowners to correct violations of local and/or state regulations for the unit and accessory structures. Management generally cannot require a homeowner to make physical improvements to park-owned property or structures, including the lot.

See MRL sections 798.73.5 an 798.83 in the Civil Code for more information Here.

Did you know… ?

Contrary to popular belief, fixed rate financing IS available for mobile homes and manufactured homes built prior to June of 1976. Visit California Manufactured Home Finance’s website at  www.camhf.com for more information on financing a mobile home.

This concludes today’s Mobile home edition of  ”Did you know?”

Mobile Home Park Inspections Explained by The Department of Housing

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Every 5 to 7 years, California law requires that the California Department of Housing and Community Development maintain an health and safety hazard inspection on every mobile home or manufactured home community in California. The Department of Housing, or HCD, has released this informative video, explaining why these inspections are necessary.

screenshot

Mobile home and Manufactured home communities provide desireable lifestyles at affordable costs, however, the nature of such community style living requires that each homeowner be responsible for maintaing their home and their lot to ensure that the community remains free of any illegal health and safety hazards.

To ensure that each Mobile Home park remains free from these hazards,  legislation was put into place in 1991 that ensures every mobile home park in the State of California is inspected every 5 to 7 years.

In the course of their research, the Department of Housing realized that most of the violations exist because home owners and park operators simply do not realize that the violations are illegal and dangerous. However, the following examples of common violations are offenses that must be corrected to ensure the safety of the home owners and the general public:

Broken Windows

Missing Steps

Combustibles stored under homes

Blocked emergency exits

Another common fire safety violation is the construction of a combustible accessory structure, such as a shed. The easiest way to remedy this violation is to remove or relocate the structure.

Awnings and screens that are attached to homes sometimes are added by homeowners that don’t realize that the home was not manufactured to support additional weight. For this reason, adding an awning or screened in area to your home must be done with a construction permit.

Other common violations are missing handrails and guardrails along the steps and porches of manufactured homes. The law states that handrails must be present if there are more than two steps attached to the home. Guardrails must be present on porches that are 30 inches from the ground. While these handrail and guardrail requirements seem strict, statistically most injuries in manufactured home parks are caused by falls in and around one’s own home.

These are the typical, correctable violations that are most commonly seen in mobile home parks.

Lastly, when an inspector visits your park, you should know that the inspector is not allowed to enter your home without your permission, however, the inspector is required to enter your lot for the inspection. The inspector must inspect the condition of your lot, your utility hook uips and the exterior of your home.

Mobile Home Marvel with the Trailer Wrap Project

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Mobile Home Transformation by Trailer Wrap

Mobile Home Transformation by Trailer Wrap

Trailer Wrap projects make affordable and ecologically concious remodeling efforts possible, transforming  used 1970’s “trailers” into beautiful, environmentally sound modern homes (that could be featured in model home magazines).  From TrailerWrap’s website “TrailerWrap is a collaborative, design + build project that addresses issues of sustainable and affordable design in the context of the ubiquitous American trailer park. At the scale of an individual building, the project explores the potential for augmenting this affordable housing typology with outdoor living space, improved, energy efficient construction and high volume, light-filled interiors. At the urban scale the project reexamines the mobile home park as a model for equitable, high-density alternatives to suburban sprawl. In pushing the envelope of adaptable reuse, the TrailerWrap project seeks to create exciting, small scale, high density, and affordable architecture with a social and environmental conscience.”

On the flip side, some might say that such a project detracts from one of the main benefits of manufactured housing; the controlled environment that the homes are produced within, which ensures quality, affordability and reduces environmental waste.

Trailer Wrap Interior Photo

Trailer Wrap Interior Photo

Other’s may be conerned with the reduced functionality of the actual mobile aspect of this type of home. However, Trailer Wrap has prepared for such concerns and ensures that the homes remain mobile by definition and compliant with goverment mobile home codes. The Trailer Wrap website purports, “This project conforms to the code governing mobile homes because it doesn’t require traditional foundations and the unit retains a functioning chassis. Substantial concrete piers and demountable steel connections serve as wind tiedowns, but those tie-downs are permissible because they do not emerge above the ground plane and they can be disconnected from the chassis.”

More information on the Trailer Wrap project can be found on the informational pdf offered at Trailer Wrap.Net

Mobile Homes, Smart and “Upwardly”

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Mobile Homes are being seen in a new light all across the country.

This article in the New Jersey News publication highlights some of the new sentiments that are popping up in regards to Mobile Homes and Manufactured Homes.

“From the Depression to the recession, trailer parks have been reinvented. They’re now called manufactured housing communities, and belt-tightening buyers are giving them a second glance, even in New Jersey where the double-wide has long been an outcast. Within the past few months, two new communities have opened in the state, and some bankers say loans for mobile homes are up.”

According to our experience, the demand for financing in the mobile home loan and manufactured home loan market continues to increase.

“The manufactured housing industry has held up well in the recession compared to traditional real estate. Even with the flashiest new factory-built palaces, monthly payments rarely exceed $1,000, Salamone said.

The average price of a traditional single-family abode nationwide was $313,600 in 2007 while the median cost of a dwelling assembled off-site totaled $65,100.”

“Additionally, prices of mobile homes aren’t depreciating as dramatically as traditional pieces of real estate. A house that was $55,000 five years ago is worth $50,000 today he estimates, adding that his clients’ delinquency rate is 1 percent.”

It looks like, despite the recession and the troubled economy, it’s still an excellent time to consider purchasing a Mobile Home or a Manufactured Home and take advantage of the $8,000 Tax Credit.

Ikea & Pre-Fab Homes

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Today we read a great an article unveiling the “BoKlok” homes that are being built by Ikea.

“Mention Ikea and most people will think of smart, stylish, and affordable furniture. The news that the company actually makes entire houses – and for over ten years now – will come as a shock to many. Since 1996, Ikea and its partner Skanska have been quietly experimenting with the idea of building affordable houses on factory floors. These houses, known as BoKlok – Swedish for “smart living”, are now available in five countries: Sweden, Denmark, Norway, Finland, and the UK.

Ingvar Kamprad, the founder of Ikea, had been mulling over the idea of building homes for a while when, in 1996, he sensed the right time had come, according to the company. The real estate market in Sweden, Ikea’s home country, was prohibitively expensive for many families. Demand exceeded supply in the residential property sector. More importantly, small households that compromise one to three people were, and still are, under-served by the existing market. In Stockholm, more than 85 percent of households were considered “small” in 2008 while 75 percent of the countryside fell in the same category…

When the BoKlok project began, the prefabricated homes were sold at specific Ikea stores. Currently, owners are chosen through a lottery system. “Interest in our apartments has been so great that, rather than operate a waiting list, we distribute apartments through the drawing of lots,” according to Ikea. While the concept remains the same, the design of the houses has been adjusted to the tastes of their target countries. What is best selling in Sweden doesn’t necessarily translate in the Danish, Norwegian, Finnish and UK markets.

In Sweden, Ikea offers three types of BoKlok homes – multiple family houses, apartments, and has recently added villas to its line. They all have high ceilings and extra large windows to allow in maximum light. Most are fitted with oak floors, tiled bathrooms, and Ikea kitchens. The villas come with maximum adaptability to customers’ tastes while the other two types have limitations. The homes are built in modules and then delivered to their final site.  Assembly, done by Ikea itself, takes a short time – just a day to install a six apartment building. “By the time the evening falls, the roof is on and the building is completely watertight,” according to the company. ”

Read the entire article HERE

UPDATE – Fleetwood Enterprises in loan talks with BofA

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Update on Fleetwood Enterprises from Reuters

“By Chelsea Emery

NEW YORK, March 17 (Reuters) – Motor home maker Fleetwood Enterprises Inc (FLTWQ.OB) is negotiating with Bank of America (BAC.N) for bankruptcy financing and hopes to present a plan to a bankruptcy court as early as next week, according to court documents.

Company spokeswoman Rivian Bell was not able to specify the amount of debtor-in-possession financing being discussed. Such financing is a loan made to a company to help it fund operations while it restructures under bankruptcy protection.

Fleetwood, which also makes manufactured housing, has asked the court to approve emergency funding to pay workers’ compensation benefits to third-party administrators, according to the company’s filing with the Bankruptcy Court for the Central District of California in Riverside on Monday. A hearing was scheduled for 11 A.M. PDT today (Tuesday).

Fleetwood filed for bankruptcy on March 10, hurt by high fuel prices and the U.S. economic recession that had limited sales of its motor homes. The U.S. housing market decline has also slashed demand for its manufactured homes.

It is shuttering its travel trailer division and seeking a buyer for its motor home and manufactured housing units.

“There has been outreach to strategic and financial buyers and there has been interest,” said Bell, adding that she was unable to clarify further.

The Fleetwood case is In re Fleetwood Enterprises, Inc, US Bankruptcy Court, Central District of California (Riverside), No. 09-14254. (Reporting by Chelsea Emery; editing by John Wallace)”

California’s Fleetwood Enterprises files Chapter 11

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(03-10) 14:20 PDT Riverside, Calif. (AP) –

“RV and manufactured housing builder Fleetwood Enterprises Inc. filed for Chapter 11 bankruptcy protection Tuesday, citing unprecedented credit restrictions affecting dealers and customers following three years of restructuring as market conditions worsened.

The Riverside-based company said its motor home and manufactured housing business will continue to operate while it seeks buyers for those business units, but it will close its travel trailer division.

The division accounted for losses of $65.3 million in 2007 and $16.8 million in 2008. The closing affects three manufacturing facilities and two service facilities employing about 675 people. The company is also laying off an additional 65 corporate associates.

“Although we made substantial progress in restructuring this division and improved the product offering, current market conditions proved too severe to continue the turnaround,” Elden L. Smith, Fleetwood’s president and chief executive officer, said in a press release.

Fleetwood, which employs more than 3,000 people in 15 plants in 10 states, filed petitions in U.S. Bankruptcy Court in Riverside for itself and certain operating subsidiaries, but not any of its foreign or non-operating entities.”

Read the Full ArticleLINK

American Recovery and Reinvestment Act of 2009

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Here’s an interesting article published by MHI (the Manufactured Housing Institute) on how the new American Recovery and Reinvestment Act of 2009 will affect Manufactured Housing:

“On February 17, 2009 President Obama signed the American Recovery and Reinvestment Act of 2009 into law. Key provisions advocated by the Manufactured Housing Institute (MHI) and its affiliates the National Modular Housing Council (NMHC) and National Communities Council (NCC) were included in the final economic stimulus package. In particular, the law authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.”

“Does this tax credit apply to manufactured and modular homes? Any home that will be used as a principal residence will qualify for the credit including manufactured homes, modular homes, site-built homes, even houseboats!
This also includes homes placed on private land or in a land-lease  Community, a condominium, or a cooperative.Mobile Homes financed using a personal property loan are eligible.”

Read more of the original article via MHI at:

http://www.manufacturedhousing.org/admin/template/brochures/721temp.pdf