What Clayton Homes Is

Clayton Homes is the largest manufactured home builder in the United States, owned by Berkshire Hathaway. The company builds mobile homes at factories in multiple states and sells them through its own network of dealerships, as well as through independent dealers. When you buy a Clayton home, you are purchasing a factory-built house that arrives on a truck and is set up on land you own or rent.

Clayton does not just build the home — it also finances many of its sales through Clayton Financial Services, its lending arm. This means the same company that built your home may also hold your mortgage. Clayton homes range from single-wide units (about 600 to 900 square feet) to double-wide and triple-wide models (up to 2,000+ square feet), with prices varying by size, location, and features.

Key Takeaways

  • Clayton Homes manufactures mobile homes at factories across the United States and sells them through company-owned and independent dealerships.
  • Clayton Financial Services finances many Clayton home purchases, so you may borrow from the same company that built your home.
  • Financing a Clayton home typically requires a down payment, and loan terms, interest rates, and approval depend on your credit history and income.
  • Clayton homes are subject to HUD (Department of Housing and Urban Development) building codes, which set safety and construction standards for all manufactured homes.
  • Your total cost includes the home price, land (if you buy it), setup and delivery, property taxes, insurance, and lot rent if you live in a mobile home community.

How Clayton Financing Works

If you finance through Clayton Financial Services, the process begins at the dealership. A loan officer will review your income, credit score, and debt to determine what loan amount and interest rate you may receive. Clayton typically requires a down payment — the amount varies but is often 10 to 20 percent of the home's purchase price, though this can change based on your credit profile and the specific loan program.

Clayton loans are secured by the home itself, meaning the company holds a lien on the property until you pay off the loan. Loan terms usually range from 15 to 30 years, similar to traditional mortgages. Your monthly payment covers principal, interest, property taxes (in some cases), and insurance. Before you sign, ask the lender to provide a Loan Estimate that shows the interest rate, monthly payment, total amount financed, and all fees — this is a standard document that federal law requires lenders to give you.

If your credit is limited or your income is lower, Clayton Financial Services has programs designed for borrowers in those situations, though interest rates may be higher. You can also explore financing through banks or credit unions outside of Clayton, though some dealers may offer incentives if you finance through the company.

Understanding the Total Cost of Ownership

The price tag on a Clayton home is only part of what you will pay. Delivery and setup typically cost $3,000 to $5,000 or more, depending on distance and site preparation. If you are buying land as well, that is a separate purchase with its own closing costs. If you are placing the home in a mobile home community, you will pay monthly lot rent, which covers land use, maintenance of common areas, and sometimes utilities.

Property taxes on a manufactured home vary by state and county — some states tax mobile homes like real property, while others tax them differently. Homeowners insurance is required by lenders and typically costs $800 to $1,500 per year, though this varies by location and coverage level. You may also need to budget for maintenance, repairs, and potential HOA fees if the community has one.

Before you commit, ask the dealership for a written breakdown of all costs: home price, delivery, setup, taxes, insurance estimates, and lot rent (if applicable). This helps you understand the true monthly and annual expense.

HUD Standards and What They Mean

All Clayton homes, like all manufactured homes sold in the United States, must meet HUD Code — federal building standards set by the Department of Housing and Urban Development. HUD Code covers structural integrity, electrical systems, plumbing, heating, and fire safety. Clayton homes are inspected at the factory before they leave, and a third-party inspector verifies compliance.

HUD Code is different from local building codes that explore to site-built homes. Some people perceive manufactured homes as lower quality, but HUD Code is actually quite strict. The main difference is that manufactured homes are built in a factory on an assembly line, which can mean tighter construction in some ways and different design choices in others. Clayton publishes the HUD certification label on every home it builds, which you can review before purchase.

Where You Can Buy a Clayton Home

Clayton Homes operates company-owned dealerships in most states, and you can also buy Clayton homes through independent dealers who carry the brand. The company's website has a dealer locator tool where you can find showrooms near you. At a dealership, you can view floor plans, walk through model homes, and discuss financing options with a sales representative.

Some people also buy Clayton homes through online marketplaces or used home listings, though buying directly from a dealership gives you the advantage of seeing the home before delivery and working with the financing team. If you buy used, you will be working with a private seller or a dealer that specializes in pre-owned manufactured homes, and financing may be more limited.

What Happens After You Buy

Once you have signed the loan documents and closed on the home, Clayton arranges delivery to your land or lot. A delivery crew will transport the home on a truck, position it on the foundation, connect utilities (water, sewer, electric, gas), and perform a final walkthrough with you. This process typically takes one to three days, depending on the complexity of the setup.

After delivery, you own the home and are responsible for maintenance and repairs. If you financed through Clayton Financial Services, you will receive a payment coupon book or instructions for online payment. Your lender will require you to maintain homeowners insurance throughout the loan term. If you have questions about your loan or need to make changes (such as paying extra toward principal), you can contact Clayton Financial Services directly.

Frequently Asked Questions

Can I move a Clayton home if I buy it?

Yes, but moving is expensive and complicated. Moving a manufactured home typically costs $5,000 to $15,000 or more, depending on distance and site preparation at the new location. You will also need to obtain permits and hire a licensed mobile home mover. Most people keep their homes in one place, but relocation is possible if you own the land or have permission from the lot owner.

What is the difference between a Clayton home and a site-built house?

Clayton homes are built in a factory and transported to your land; site-built homes are constructed on-site. Manufactured homes are typically less expensive upfront and built to HUD Code. Site-built homes follow local building codes and may have more customization options. Both can last 30+ years with proper maintenance, though financing terms and insurance may differ.

Do I need to own land to buy a Clayton home?

No. You can place a Clayton home in a mobile home community where you rent the lot, or you can buy land separately. Renting a lot is often cheaper upfront but means monthly lot rent. Owning land gives you more control but requires a larger initial investment and separate land financing.

What if I have bad credit?

Clayton Financial Services works with borrowers across the credit spectrum, including those with lower credit scores. You may still receive financing, but the interest rate will likely be higher, and the down payment requirement may be larger. You can also explore financing through credit unions or banks, which sometimes offer better rates for borrowers with challenged credit.

How long does the buying process take?

From the time you choose a home to delivery, the process typically takes four to eight weeks. This includes loan processing, underwriting, final approval, and scheduling delivery. If you are buying land as well, the timeline may be longer because real estate transactions move at their own pace.