Who needs Manufactured Home Bonds?

Manufactured home bonds are commonly required for businesses and individuals who want to get or keep a license to operate in the manufactured housing industry. This often includes manufactured home dealers, retailers, installers, brokers, salespeople, and manufacturers.

The bond is generally required by a state licensing agency, and in some cases a local municipality may also require a bond for activities like installing or moving manufactured homes. The purpose is to help ensure you follow the rules tied to your license and to provide financial protection to customers if there is fraud, poor workmanship, or a failure to meet contractual obligations.

If a valid claim is paid, the bonded business is responsible for repaying the surety company for any amounts paid out.

How much do Manufactured Home Bonds cost?

The cost of a manufactured housing bond depends on the bond amount required by the licensing authority and the premium rate you qualify for. The premium rate is typically a small percentage of the total bond amount.

Manufactured housing bond rates commonly fall between 1% and 10%. Your rate is usually based on factors like your credit, financial stability, and sometimes your experience in the industry.

Many state-required bonds involve a credit check. Some local municipality bonds, especially those with smaller required amounts, may not normally require a credit check.

How do I get a Manufactured Home Bond?

To get a manufactured housing bond, you apply through a surety company and provide the basic information needed to match the bond to your license type and licensing requirements. The licensing authority sets the bond amount and bond form requirements, and the surety company reviews your application to determine the premium rate.

During the application process, the surety may review your credit and may also consider your financial strength and industry experience, depending on the bond requirement.

Once issued, the bond is provided for your licensing file so you can obtain or maintain your license.

Can I get a Manufactured Home Bond with bad credit?

Yes, bad credit does not automatically prevent you from getting a manufactured housing bond. Applicants with stronger credit typically qualify for lower rates, but bonds are often still available to applicants with lower credit scores or other financial challenges.

Because pricing is based on risk, applicants with bad credit may pay a higher premium rate than applicants with good credit.

How fast can I get Manufactured Home Bonds?

Timing depends on the bond type and whether underwriting review is needed. Some manufactured housing bonds can be issued quickly once the application is complete, while others may take longer if a credit check and additional review are required.

Having your licensing paperwork and business information ready can help avoid delays and speed up the process.

If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.