What makes a factory-built home count as real property instead of personal property?

Generally, a home becomes real property when it is permanently attached to land the owner holds and any separate vehicle-style title or ownership record is converted or retired under state law. Freddie Mac explains that most states first treat a manufactured home as personal property and let owners convert it once they own the land, with rules that vary by state. Lender programs usually add physical tests, such as a permanent foundation and removal of the towing hitch and running gear. In Texas, modular homes built under the state industrialized housing program must sit on a permanent foundation and become part of the real property, with no state title issued. Real property status matters because many lenders only make mortgages on real property.

Check your local rule. This varies by state, county or city. Your permitting office has the final word; the official lookup pages below show you who that is.

Sources

• What You Should Know About Titling a Manufactured HomeFreddie Mac
• Industrialized Housing and Buildings: Frequently Asked QuestionsTexas Department of Licensing and Regulation