Manufactured Housing News

California homes are notoriously expensive and hard to come by. That’s why the mobile home market has been growing steadily in the Golden State. However, California's many regulations have significantly shaped the mobile home loan market, influencing everything from zoning and taxation to consumer protections. Triad is diving deeper into how these regulations might affect your efforts to find financing for a new mobile or manufactured home. 

Zoning and Land Use: California's strict zoning regulations can influence where mobile homes are situated, affecting demand and the availability of financing. Local zoning codes often limit where mobile homes can be placed, particularly in urban areas. These restrictions might push manufactured housing into more rural or suburban regions, where the land is more affordable and accessible. 

Tax Differences: Tax laws also play a major role in mobile home financing. In California, mobile homes classified as personal property face different tax rules than those that are considered real estate. A mobile home affixed to land that the owner controls is treated as real estate and subject to property tax, which could lead to lower loan interest rates. However, mobile homes on leased land, typically in mobile home parks, are taxed as personal property, and may result in higher interest rates. The lender might see these personal property loans as more of a risk to finance. 

However, California’s regulations regarding mobile homes aren’t all strict and limiting. Some laws also protect the buyer and encourage mobile home financing.

Related: Learn How to Finance a Mobile Home the Right Way

Consumer Protection: California's consumer protection laws are designed to protect buyers from predatory lenders and other financial traps. The California Mobilehome Residency Law (MRL) controls park leases and makes sure that residents receive fair terms and transparent policies. Meanwhile, the California Department of Housing and Community Development provides guidelines on mobile home sales and financing, promoting ethical lending practices. 

Mobile Home Loan Programs: To encourage mobile home ownership, California has started several loan programs offering great terms and conditions. For example, the California Housing Finance Agency (CalHFA) provides loans tailored for low- and moderate-income families. And multiple state-funded programs support mobile home park residents seeking to purchase the land their homes are on, lowering their vulnerability to escalating lot rents and park closures. 

California's regulations around mobile home loans can definitely impact your process of finding financing for them, for both better and worse. While some of these regulations are meant to protect you as a buyer and promote fair practices, they also create obstacles for a lot of new homeowners. Proceed with caution, and when in doubt, turn to companies like Triad who specialize in finding you the ideal mobile home financing options. They can help you find the perfect mobile home to suit your needs, and work around the nuances of the state’s laws.