mtgguru, I think part of the problem with manufactured homes IS the lending industry's inconsistent treatment of these homes. Just like stickbuilt homes, there are bad, good, and great ones. There are good contractors who put them together and bad ones. To a certain extent, the value is affected by the inability at times to finance the homes. So, people are cautious about purchasing one because the First law of real estate is "When you buy, think about selling." Just because I can finance this home for my purchase does not mean I can finance it when I want to sell. This is a self fulfilling situation that reduces the value of the homes.
I grant the foreclosure rate is higher on mfg homes than site built homes. To a certain extent, this is a function of the cost of a mfg home is almost always lower than a stick built home that equates one to one in terms of what is there. So, the buyer who does not make as much is the one who buys the mfg home. Because he skates a lot closer to the edge than the more affluent members of society, he is more likely to fall into foreclosure than the buyer of a stick built home.
In the end, as a RE salesperson, I wish the lending community would concentrate on the buyer's ability to pay more than the type of house it is. In the end, that is what matters.
As to which to purchase, obviously, due to lending, if you can buy a stick or modular (technical term which does not include MFG even though they are functionally equivalent.) do so.