The Skinny on Buying a Mobile Home
Exterior of a modern manufactured home (Photo credit: Wikipedia)
When it comes to purchasing mobile homes (also called manufactured homes), most buyers are not aware of the differences between that a buying a traditional home. Because there are significant differences between the two it’s important that first time buyers go into the transaction with both eyes wide open.
Financing your Manufactured Home
You may have heard the statement that mobile homes are not a good investment; it’s true. While most homes eventually turn out to be a good solid investment as they appreciate over the years; mobile homes as a rule, do not. Many home buyers go into the deal thinking of their purchase as an investment but you cannot with mobile homes. For that reason, there has to be other compelling reasons that making buying your first mobile home a sound move on your part.
First off, you will find that financing your mobile home purchase is much more difficult. Many banks and other mortgage lenders just do not finance mobile homes, largely because they depreciate rather than appreciate. You will have to do some searching to find a lender that will work with you on a mobile home purchase. Some lenders will only finance one that is on a permanent foundation, while others will only finance mobile homes manufactured after a certain date. Some lenders will finance the land with the mobile home on it, and other lenders will only finance the mobile home so you will have to own the land before they will finance your mobile home purchase. Some lenders put restrictions on the square footage of a mobile home. If it is smaller than their guidelines specify, you cannot get financing from them. Most lenders charge a significantly higher interest rate as well; usually around one percent, but some charge higher. So you will have to do some investigating about your prospective mobile home before you start looking for a mortgage. Mobile homes have a greater flexibility in the construction process so buyers having one built for them can tailor it to fit their unique needs.
Mobile homes are not the tiny boxes that many of them used to be. Most manufactures have floor plans available from under 1000ft to approaching 4000ft; that is a decent sized home.
Why Buy a Mobile Home?
Since mobile homes (manufactured homes) are not considered sound investments, are there other compelling reasons to purchase one? That all depends upon your unique situation. Many people enjoy the feeling of country living and do not want to live in a suburban neighborhood or city. However, after purchasing acreage may not be able to come up with the money to have a traditional brick and mortar house built. Buying a mobile home and having it set on your property is often a much more affordable solution to homeownership. On average a mobile home can be acquired for 40-45% less per square foot than a traditional stick built home; that’s quite a discount. It’s even better when you consider that over the past 30 years the quality of craftsmanship in mobile/manufactured homes has increased tenfold. If you choose to have a mobile home built for you then placed on your property it usually takes only 3-4 months, that’s a lot quicker than a stick built home. For those who place a higher value on the amount of land they live on, a manufactured home affords them the chance to buy more land than they would have been able to afford had they purchased a traditional home.
Educate Yourself
Before you start the buying process educate yourself. Find out what is available and at what price. Check with different lenders and find out what their restrictions are if any when it comes to financing manufactured homes. If you’re buying a used one you’ll need to know if it’s on a permanent foundation and what year it was built. Both those things will determine if a lender is able to give you a mortgage on the mobile home you are interested in. And remember, mobile homes do not appreciate, so there has to be other compelling reasons to make the purchase of one worthwhile; and there are many compelling reasons to buy a mobile home.
Mallory Kerr is a professional blogger that presents tips and advice for buying a manufactured home and real estate. She writes for Manufactured Selling Solutions, where you can find mobile homes for sale or sell your manufactured home.
