Michigan Manufactured Housing Retailer Bond (Used Only): A Complete Guide

If you’re selling used manufactured homes in Michigan, you may need a Michigan Manufactured Housing Retailer Bond (Used Only) as part of your licensing requirements. This surety bond helps ensure that used manufactured housing retailers follow Michigan laws, operate ethically, and protect consumers from fraud or financial harm.

From my experience, many retailers don’t realize this bond is required until they start the licensing process. I’ve helped many business owners secure their Manufactured Housing Retailer Bonds quickly and affordably, and I’ve found that understanding the requirements ahead of time can prevent licensing delays and legal issues.

This guide will explain everything you need to know about the Michigan Manufactured Housing Retailer Bond (Used Only), including who needs it, why it’s required, how much it costs, and how to get one.

What Is a Michigan Manufactured Housing Retailer Bond (Used Only)?

A Michigan Manufactured Housing Retailer Bond (Used Only) is a surety bond required by the Michigan Department of Licensing and Regulatory Affairs (LARA) for businesses that sell used manufactured homes.

This bond acts as a financial guarantee that the retailer will:

✅ Comply with Michigan manufactured housing laws and licensing requirements.
✅ Conduct honest and ethical business practices when selling used manufactured homes.
✅ Pay any fines, penalties, or financial damages if they violate state regulations.
✅ Compensate consumers in case of fraud, misrepresentation, or failure to deliver a properly titled manufactured home.

Unlike insurance, which protects the policyholder, a surety bond protects the state and consumers by holding retailers accountable for their actions.

Who Needs a Michigan Manufactured Housing Retailer Bond (Used Only)?

You need this bond if you are:

✔️ A retailer selling used manufactured homes in Michigan.
✔️ A dealer or reseller of pre-owned manufactured housing.
✔️ A business applying for or renewing a Manufactured Housing Retailer License (Used Only) with LARA.

Who Does NOT Need This Bond?

❌ Dealers selling new manufactured homes (different bonding requirements apply).
❌ Private individuals selling their own used manufactured home (one-time private sales do not require bonding).
❌ Real estate brokers selling manufactured homes on permanent foundations (these are treated as real estate transactions).

If you’re unsure whether you need this bond, I’ve found that checking with LARA is the best way to confirm your requirements.

Why Is a Michigan Manufactured Housing Retailer Bond Required?

The Michigan Manufactured Housing Retailer Bond (Used Only) is required to:

📌 Protect Consumers – Ensures that retailers follow fair business practices and do not mislead buyers.
📌 Ensure Compliance – Guarantees that retailers follow Michigan's Manufactured Housing Act.
📌 Hold Retailers Accountable – If a retailer commits fraud or fails to properly transfer home titles, the bond provides financial compensation to affected parties.
📌 Guarantee Payment of Fees & Penalties – Ensures that any unpaid fees, fines, or penalties owed to the state are covered.

In my experience, securing this bond not only meets a legal requirement but also builds trust with customers, proving that your business is legitimate and financially responsible.

How Much Does a Michigan Manufactured Housing Retailer Bond Cost?

The cost of a Michigan Manufactured Housing Retailer Bond (Used Only) depends on the required bond amount and your credit score.

1️⃣ Bond Amount

The required bond amount is set by LARA and depends on the size and scope of your business. While amounts can vary, many used-only manufactured home retailers are required to post a bond of:

• $10,000 - $25,000 for small to mid-sized retailers.

• $50,000+ for larger retailers handling a high volume of transactions.

2️⃣ Bond Premium (Cost to You)

The premium (the price you pay for the bond) is typically 1% to 5% of the total bond amount.

✔️ A $10,000 bond may cost $100 - $500 per year.
✔️ A $25,000 bond may cost $250 - $1,250 per year.
✔️ A $50,000 bond may cost $500 - $2,500 per year.

3️⃣ Credit Score & Financial History

Most surety providers perform a soft credit check to determine your bond premium.

🔹 Good credit (700+) → Lower premiums (1-2%)
🔹 Fair credit (600-699) → Moderate premiums (3-4%)
🔹 Poor credit (<600) → Higher premiums (5%+)

I’ve worked with many used manufactured home retailers—including those with credit challenges—to find affordable bond options.

How to Obtain a Michigan Manufactured Housing Retailer Bond (Used Only)

Getting your bond is a quick and simple process. Here’s what you need to do:

Step 1: Confirm Your Bond Requirement

✔️ Contact LARA to determine the required bond amount for your business.

Step 2: Apply for the Bond

✔️ Provide basic business and personal details to a surety bond provider.

Step 3: Get a Quote

✔️ Based on your credit score and bond amount, you’ll receive a bond premium quote.

Step 4: Pay for the Bond

✔️ Once approved, pay the bond premium to finalize your bond.

Step 5: Receive and Submit Your Bond

✔️ You’ll receive your bond certificate, which you must submit with your Manufactured Housing Retailer License (Used Only) application.

In my experience, applying early helps prevent delays in getting your business licensed and operational.

What Happens If You Don’t Get This Bond?

Failing to obtain a Michigan Manufactured Housing Retailer Bond (Used Only) can result in:

❌ License Denial or Revocation – You won’t be able to legally operate as a retailer.
❌ Fines and Penalties – LARA may impose financial penalties for non-compliance.
❌ Legal Action – Consumers or the state may file claims against your business for fraudulent activity.
❌ Loss of Business Opportunities – Without a bond, lenders, insurers, and customers may not trust your business.

I’ve seen businesses face major setbacks due to not securing their bond in time. To avoid this, it’s best to get bonded as soon as possible.

How Long Does It Take to Get a Michigan Manufactured Housing Retailer Bond?

Most Michigan Manufactured Housing Retailer Bonds (Used Only) can be issued within 24-48 hours. If your application is straightforward, you may even receive approval the same day.

To speed up the process:
✅ Have your business and licensing details ready.
✅ Work with a trusted surety provider to get the best rate.
✅ Apply early to avoid delays in your business operations.

Get Your Michigan Manufactured Housing Retailer Bond (Used Only) Today

If you’re a used manufactured housing retailer in Michigan and need a Michigan Manufactured Housing Retailer Bond (Used Only), I can help you get bonded quickly and affordably.

💡 Need assistance? Contact me today for a free quote and expert guidance! Let’s ensure you stay compliant and keep your business running smoothly.