In the past several months I received several calls and referrals for prospective home buyers looking to buy land and put a new manufactured home on it. During these five separate conversations, frustration was in regards to the cost of housing and rent alike. This rising housing cost is why modular homes in Oregon (often called manufactured homes) are becoming more popular than ever.

Prices Running Hot

We’ve seen 6+ years of steady price gains in the cost of traditional housing that in many ways has outpaced the rate at which the average worker’s wages have increased. According to the National Association of Home Builder/Wells Fargo Housing Opportunity Index, only 57% of homes sold in the 2nd Quarter of 2018 were affordable to families of a median income of $71,900.

Modular Homes in Oregon Make a Comeback

At their peak in 1998, there were around 380k manufactured homes delivered to dealerships for sale. Then the industry saw a steady decline that bottomed out in 2009. Since then, the shipments to dealers have been incrementally rising.

Benefits of Modular Homes

In an interview with “Hitch” Mark Landes, a Sales Associate of Homes Direct, he sites several critical advantages to these homes over traditional homes.

The Price

They have entry level homes with over 1,000 sqft that start at $80,000. All homes come with 2×6 stud walls, cement siding, and 5yr structural warranty. They can go up from there as you pick higher-end options such as granite and hardwood flooring. They go up to as much as around $230,000 for their top of the line home that comes with about 3,200sqft.

As Hitch puts it, they can build these homes for less because they save so much cost in labor and the purchasing power of materials.

Speed Wins

Also, they can be made and set up in about 2-3 months. That’s a far cry from the year, or so it takes most houses to be built.


Thankfully, modular homes don’t look like trailers anymore. Since the early to mid-’90s, modular homes have changed in appearance. They no longer look like two trailers put together to make a box/home. Especially now. Add an attached garage and a wrap-around deck for a great looking home.

Like traditional single-family homes, manufactured/modular homes do depreciate and experience the same price filtering as compared to similar homes that are newly built. However, as the cost of building and placing the home and property grows, it also pulls up the value of both types of properties.

Wise Purchase Option

Modular homes always seem to provide a lower cost of housing per sqft as compared to a stick built home, often at a price that is 20% lower. Modules that were Pre-HUD (before June 1, 1976) are challenging to finance, and prime lending is not available.

However, those modules built to HUD specifications (Post-HUD) can receive funding with prime lending options.

It’s important to note that by my count, only about half of the banks and mortgage lenders will finance these homes with their prime lending products and the options and terms can vary significantly between lenders.

Here is a break down of the minimum down payments required by each loan type:

  • Conventional 5% Down
  • FHA 3.5% Down
  • VA 0% Down
  • USDA (built 2006 & newer) 0% Down

Contact Us Today

If you would like to get a modular home loan, contact our office and we would be thrilled to help.