The HUD Code was enacted in 1976. The changes made the classification of the Manufactured Home, very different from a Mobile Home. The building standards changed, and construction and design took a step up.
Prior to this law change, a Mobile Home referred to an unregulated construction type, built pre-1976. Also, it could be easily pulled away, with just a truck, and relocated to another space. Lenders could have their security be so moveable.
In fact, Mobile Homes were just a fancy name for Trailers. Trailers were used for vacations and “trailed” behind a truck, to be moved from one location to another. As they became for elaborate, families were living in them, full time.
Now, Manufactured Homes refer to a unit that was built after 1976, and therefore regulated by the new construction laws. By adding that building standard to a permanent foundation, now lenders considered the home to be almost the same as a stick built home, as far as lending guidelines go.
Still, the similarity is not quite the same, when it comes to pricing the loan. Yes, the same rate sheet is used for traditionally built and manufactured homes, but there is a price adjustment, which generally amounts to about a .5% increase in the interest rate for the manufactured home.
Before 1976, and still today, Mobile Homes, are financed with a Chattel Mortgage (personal property), loan. If the home is a double wide, and is considered real estate, then we can use the traditional lenders.
Although the terms are very often used interchangeably, In the financing business Manufactured Homes and Mobile Homes are quite different animals.