What Do I Need To Buy A Mobile Home
Buying and financing a mobile or manufactured home is very different from traditional home buying and getting a mortgage. If you are thinking about buying a mobile or manufactured home, here is what you need to know, from the hidden costs of buying a mobile home to the ins and outs of buying a trailer home.
what do i need to buy a mobile home
For a new single-wide mobile home, Golightly says financing is practically impossible through a larger private lender. However, you may be able to find finance through the mobile home sales company or through a credit union.
If you get a mortgage on your mobile home, your lender is likely to require you to carry mobile-home insurance for as long as you have the loan. Similar to traditional homeowner insurance, this insurance protects you, and the mortgage holder, in case of natural disasters, damage from fire or loss from theft.
Manufacturer standards improved post-1976, however, and new home buyers should expect the future value of their home investment to depend largely on its location, whether renting or with a home on its own lot, just like other real estate investments.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
With housing prices continuing to rise, mobile homes, also referred to as manufactured homes, can offer more flexibility than traditional homes and are typically much more affordable. The average cost of a manufactured home is about $87,600.
Whether a house is considered a mobile home depends on when it was made. Homes built in a factory before June 15, 1976, are known as mobile homes. This is when the U.S. Department of Housing and Urban Development (HUD) enacted the National Manufactured Housing Construction and Safety Standards Act.
According to the Housing Act of 1980, factory-built homes constructed on or after June 15, 1976, are manufactured homes. HUD highly regulates the construction of these homes under the Manufactured Home Construction and Safety Standards (HUD Code).
Additionally, these types of homes must meet local building standards for the communities where they will be located. Companies that construct manufactured homes must get their designs approved by a HUD-approved Design Approval Primary Inspection Agency, which makes sure the plans are safe for consumers and comply with the law.
Like mobile and manufactured homes, modular homes are built in a factory and shipped to the land where they will be set up. However, modular homes are more similar to traditional homes. They often include crawlspaces and basements and use a traditional foundation.
Takeaway: Before you start shopping, understand the difference between a mobile, modular and manufactured home. While a mobile home may make sense for your friend, you may be better off with a modular or manufactured home, for example.
These mobile home financing options tend to give you longer repayment terms. Depending on your situation, you may opt for a nontraditional path with a shorter term. This could include chattel or personal loans.
A Title I manufactured home loan can be used in several ways, including to finance the purchase of a new or used manufactured home, refinance a manufactured home purchase, to buy the developed lot on which to locate this type of home, and for a combination purchase of both the lot and the home itself. These funds can also be used to alter, repair or improve a manufactured home.
Title II loans cannot be used for manufactured homes on leased land in manufactured home communities or mobile home parks. Down payments on a Title II loan can go as low as 3.5 percent, and terms can last as long as 30 years.
Some lenders offer Fannie Mae mortgages to borrowers who wish to finance a manufactured home through the MH Advantage program. To qualify, you need to satisfy a number of eligibility criteria, including installing the home with a driveway and a sidewalk that connects the driveway, carport or detached garage.
The loans come with 30-year financing, and you may be able to secure them with a down payment as low as 3 percent. As an added benefit, interest rates on MH Advantage mortgages tend to be lower than those of most traditional loans for manufactured homes.
If you belong to the military community, you may qualify for a loan insured by the Department of Veterans Affairs. You can get a VA loan to buy a manufactured or modular home and put it on land you already own, buy both the home and land simultaneously, or refinance a home you plan to transport to land you own.
A chattel loan is a special type of personal property loan you can use to purchase a mobile home. These mobile home loans are designed for financing expensive vehicles like planes, boats, mobile homes or farm equipment, where the property guarantees the loan.
Some lenders offer chattel loans for manufactured home purchases that are insured by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA) and the Rural Housing Service (RHS) through the U.S. Department of Agriculture. While you may be able to find lenders that offer both chattel loans and traditional mortgages, these two loan types differ in a few ways.
Personal loan lenders usually offer maximum loans of $25,000 to $50,000, though some lenders will let you borrow $100,000 or more. If you see a lender offering a personal loan large enough for financing a mobile home, it might be a good way to borrow the money that you need.
Takeaway: You can cover the cost of a mobile or manufactured home in multiple ways. When you compare mobile home financing options, consider the type of home you want to buy, how much money you need to borrow, when you plan to pay back your loan, and what type of interest rate you prefer.
Mobile home interest rates and manufactured home loan rates and fees can vary widely between lenders, so take the time to shop around. Try to find a loan that has low fees and interest rates so you can spend as little as possible over the life of the loan.
Like traditional homes, mobile homes and manufactured homes are all about location. Before you think about anything else, figure out where you will install your mobile home. The location you choose will have a big impact on the rest of the process.
One option is to install the home on a piece of land you already own. You may also opt to buy the land where your mobile home will be located. Just make sure zoning regulations allow for the installation of mobile homes on the lot you own or wish to purchase. Also, confirm that the lot is suitable for mobile homes and that the local utilities are equipped to connect a mobile home.
Another option you can consider is renting a plot of land in a mobile home community. This requires less money upfront but adds a monthly rent bill for the lot to your housing costs. Check with the manager of the community for restrictions on home features and size and to find available plots.
Mobile homes are usually classified by their width. You may see the terms single-wide or single unit and double-wide or double unit used. Single-wide homes are slightly under 15 feet wide and double-wide homes are double that width. Both are usually about 70 feet long.
Similar to standard homeowners insurance, this type of policy offers you protection if your home is damaged or requires repairs. Often policies will cover the dwelling itself as well as your personal belongings if items were damaged or stolen. You may also obtain policies that include liability coverage, which protects you if someone is injured on your property and you are held liable.
A smooth buying process entails making a decision about items on this checklist before sitting down with a manufactured house professional to custom-order your new home. With a working knowledge about your buying power, dream home ideas, family needs, and others, you will be able to make an informed decision.
When buying a mobile home, it may be wise to make a strategic land decision. While a privately-owned parcel has a certain allure at first blush, leasing land in a mobile or manufactured home park also provides value. These are critical items to check off when considering buying a mobile home in a park. Usually owning a mobile home placed in parks decreases in value over time. This is why make sure to have the information pack with you before making a purchase. Go through these questions and understand how to buy a mobile home in a park.
Buying a new mobile home and having it delivered to a leased-land park can lower your monthly mortgage costs and provide you with more money for leisure spending. Not having to purchase land upfront also helps many first-time buyers qualify for home loans 2021. Home loans can be complicated if not done correctly. It is always recommended to check different options before buying a new mobile home.
For many growing families, putting down roots on land you own outright is part of that American Dream. The privacy and ability to do as you like without association guidelines remain priceless. These are important items to keep on your buying a new mobile home checklist when securing your own land. Here is some advice that can help you understand what to do and how to buy a mobile home.
By working directly with a manufacturer, you can select the precise floor plan, amenities, and style of mobile home you desire at a fraction of the cost of a site-built structure. Buying new allows everyday people to get the affordable dream home you desire. These are items to closely consider on your buying a mobile home checklist so that you know what to look for when buying a manufactured home. 041b061a72