What Clayton Homes is and who owns it
Clayton Homes is the largest manufactured home builder in the United States, owned by Berkshire Hathaway since 2003. The company builds factory-constructed homes that are then transported to a lot you own or lease. Clayton operates under several brand names — Clayton, Oakwood, Moduline, and others — and sells through its own network of retail locations and through independent dealers.
Clayton homes are built in factories following federal construction standards set by the Department of Housing and Urban Development (HUD). This means the framing, electrical, plumbing, and HVAC systems are all installed indoors before the home leaves the factory. The finished home arrives on a truck in one or more sections, depending on size, and is set on a permanent foundation at your location.
Because Clayton is a manufacturer, not a lender or land broker, you will work with them to choose and customize a home model, but you will handle financing and land separately. Clayton can refer you to lenders they work with regularly, but the loan itself comes from a bank, credit union, or manufactured home lender — not from Clayton.
Key Takeaways
- Clayton Homes builds the house in a factory and delivers it to your lot; you are responsible for owning or leasing the land separately.
- Financing for a Clayton home comes from a third-party lender, not from Clayton, and interest rates and terms depend on your credit and the lender's requirements.
- Clayton homes must meet HUD construction standards, which cover structural safety, electrical, plumbing, and energy efficiency, but these standards differ from site-built home codes in some states.
- The total cost includes the home price, delivery and setup fees, land cost or lease, and ongoing property taxes or lot rent, which vary widely by location.
- Clayton offers a limited manufacturer's warranty on the home itself, but you will also need homeowners insurance and, if you lease the land, you will pay monthly lot rent to the park owner.
How the buying process works
You start by visiting a Clayton retail location or an independent dealer to browse available models and floor plans. Clayton offers homes in a range of sizes — from around 400 square feet to over 2,000 — and price points. You can tour a model home, discuss customization options (such as exterior colors, flooring, or appliance upgrades), and get a price quote.
Once you have chosen a model and customizations, Clayton will provide you with a purchase agreement that lists the home price, delivery date, and any upgrades. At this stage, you will also need to show proof that you own or have a lease on the land where the home will be placed. If you do not yet own land, the dealer can sometimes refer you to local properties for sale, but finding and purchasing land is your responsibility.
After you sign the purchase agreement, Clayton will begin building your home in the factory. This typically takes 6 to 12 weeks, depending on the model and current production schedules. During this time, you will work with a lender to find financing for the home itself. Clayton can provide a list of lenders who regularly finance their homes, but you are free to shop around.
Once the home is built and your financing is approved, Clayton will arrange delivery and setup. Delivery involves transporting the home on a truck, placing it on the foundation, connecting utilities, and performing final inspections. You will pay delivery and setup fees to Clayton or a third-party contractor they arrange, and these costs vary by distance and site conditions.
Financing a Clayton home and what it costs
Manufactured home loans are different from traditional mortgages. If you own the land, you may be able to get a loan that covers both the home and the land (called a "land-home" loan), which typically has terms of 15 to 20 years. If you lease the land in a manufactured home park, you will get a loan for the home only, usually with terms of 10 to 15 years.
Interest rates on manufactured home loans are generally higher than rates on site-built mortgages because lenders view them as higher risk. Your rate depends on your credit score, down payment, loan term, and the lender's policies. Down payments typically range from 5 to 20 percent of the home price, though some lenders require more.
The total cost of owning a Clayton home includes the home price itself, delivery and setup fees (often $3,000 to $10,000 or more depending on distance), land purchase or monthly lot rent, property taxes or park fees, homeowners insurance, and utilities. If you lease land in a park, lot rent typically ranges from $300 to $800 per month depending on location and park amenities, though this varies significantly by region.
Before committing to a purchase, ask the dealer or lender for a detailed breakdown of all costs, including what is and is not included in the home price, what delivery will cost, and what ongoing expenses you can expect. This helps you understand the true monthly payment and whether the purchase fits your budget.
HUD standards and what they cover
All Clayton homes must meet the HUD Manufactured Home Construction and Safety Standards, a federal code that covers structural design, electrical systems, plumbing, heating and cooling, fire safety, and energy efficiency. These standards are enforced by third-party inspectors during and after manufacturing, and every home receives a HUD label certifying compliance.
HUD standards are different from the building codes that explore to site-built homes in your state or county. HUD standards are uniform nationwide, while local building codes vary. This means a Clayton home may not meet all the same requirements as a site-built home in your area, and some lenders or insurers may treat them differently as a result.
The HUD standards do require that homes be structurally sound, have proper electrical grounding, include working smoke and carbon monoxide detectors, and meet energy efficiency benchmarks. However, they do not cover things like local zoning rules, setback requirements, or whether a particular park or community will accept the home. Before buying, confirm with the land owner or park management that a manufactured home is permitted on the property.
Warranty coverage and what you are responsible for
Clayton provides a limited manufacturer's warranty on the home structure and systems, typically covering defects in materials and workmanship for one year from delivery. The warranty covers things like roof leaks, wall cracks, or failed appliances, but it does not cover normal wear and tear, damage from misuse, or issues caused by improper setup or maintenance.
You are responsible for homeowners insurance on the home itself. Manufactured home insurance is usually cheaper than site-built home insurance but covers similar risks — fire, theft, liability, and weather damage. If you have a loan, the lender will require you to carry insurance and name them as the loss payee.
If you own the land, you are also responsible for property taxes, which are assessed by your county or municipality. If you lease land in a park, you pay lot rent to the park owner instead, and the park owner typically pays property taxes on the land itself. Either way, you should budget for these ongoing costs when deciding whether a Clayton home fits your finances.
Resale value and long-term ownership
Manufactured homes, including Clayton homes, typically depreciate in value over time, unlike site-built homes which often appreciate. This means if you sell the home in 10 years, it may be worth less than you paid for it, even if you have maintained it well. The resale market for manufactured homes is also smaller and less liquid than the market for site-built homes, so selling may take longer.
Resale value depends on the home's condition, the local market, whether you own or lease the land, and the park's reputation if you are in a community. Homes in well-maintained parks with good management and amenities tend to hold value better than homes in declining parks. If you plan to stay in the home long-term, depreciation may matter less to you than if you expect to sell in a few years.
Before buying, research the specific park or community where you plan to place the home. Talk to current residents, ask about the park's rules and fees, and find out whether lot rent has been stable or rising. These factors affect both your quality of life and the home's future resale value.
Frequently Asked Questions
Can I move a Clayton home if I own the land?
Yes, but moving is expensive and complicated. The home must be transported on a truck, which requires permits, route planning, and professional movers. Moving costs typically range from $5,000 to $15,000 or more depending on distance and site conditions. Most owners keep the home in place for the life of the loan.
What happens if I want to pay off my loan early?
Most manufactured home loans allow early payoff without penalty, but check your loan documents to confirm. Paying off early saves you interest but does not change the home's depreciation or ongoing costs like insurance and property taxes.
Can I get a loan if my credit is not perfect?
Some lenders who specialize in manufactured home financing work with borrowers who have lower credit scores or limited credit history, though interest rates will be higher. Ask the Clayton dealer which lenders they work with and whether any offer programs for borrowers with credit challenges.
What is the difference between a Clayton home and a mobile home?
Mobile homes are older manufactured homes built before 1976, before HUD standards existed. Clayton homes are built after 1976 and must meet HUD standards. Mobile homes are generally cheaper but may have more maintenance issues and are harder to finance or insure.
Do I need to live in the home full-time?
That depends on your lender and your local zoning rules. Some lenders require the home to be your primary residence, while others allow investment or vacation properties. Check with your lender and your local zoning office before buying if you plan to use the home part-time.