3 Key Things You Need to Consider Before Buying Manufactured Homes
Manufactured homes, formerly mobile homes, are a significant source of reasonably priced housing that buyers can tailor based on their requirements and financial capacities. Even though they are less expensive than typical homes, you can still find fireplaces and stainless steel appliances. However, they are subject to several laws and restrictions.
What’s a Manufactured Home?
Manufactured homes are prefabricated, built off-site, and then delivered to where the client wants them. They are the most recent iteration of mobile homes, and construction is required by the Housing and Urban Development (HUD) code. Unlike their forebears, manufactured homes can be set up on either a temporary or permanent foundation.
Here are some things to consider if you’re considering buying a manufactured home.
1. Modular vs. Mobile Homes
Modular Homes: This type of home is also built off-site and transported. The main distinction between this and a typical manufactured home is that it is transported in sections and assembled on the property.
Mobile homes: The term “mobile home” was replaced by the term “manufactured home” following the adoption of the 1976 U.S. Department of Housing and Urban Development Code.
2. Manufactured Homes Prices
Your manufactured home’s price should cover all components, labor, and supplies. Depending on your budget, there are low-end homes as well as entry-level, mid-range, high-end, and very high-end options.
Additional expenses to factor into your budget include land, site work, delivery and setup, air conditioning, exterior additions, surcharges, taxes, insurance, and community fees.
A single-section manufactured home can be as inexpensive as $20,000 or as expensive as $200,000 if it has all the upgrades. The average cost is about $82,000, according to the manufactured housing survey (MHS) conducted by the U.S. census bureau and sponsored by HUD.
3. Manufactured Home Financing
You’ll need to find financing if you aren’t paying cash for your manufactured home. Depending on the classification of your manufactured home, you might be eligible for traditional mortgage financing or loan financing. You’ll probably obtain a government, Fannie Mae, or Freddie Mac-backed mortgage.
The VA, FHA, and USDA offer the manufactured home programs; each has its guidelines. You might be required to make slightly larger down payments, have slightly better credit, or pay slightly higher fees. But these initiatives continue to offer manufactured home buyers the most affordable financing options.
Suppose you don’t intend to purchase the lot along with the home, such as when purchasing into a manufactured home community. In that case, a chattel loan—made for movable properties like manufactured homes or airplanes—might be a good option.
Get Your Manufactured Home Today!
You must arm yourself with crucial information to make informed decisions before making a significant purchase, such as buying your next home. Contact us today for a quote and consultation if you’re considering purchasing a manufactured home.