4 years ago
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Justin Becker ·
Comments Off on The Process of Buying a Mobile Home
Buying a mobile home isn’t as easy as you might be thinking. It’s a process that involves making several critical decisions and steps.
For instance, to purchase a mobile home successfully, you should start by doing research, finding the perfect location, and looking at the finance options, among other things.
Here, we give you the complete process of buying a mobile home from anywhere.
Process of Buying a Mobile Home
Buying a manufactured home can be successful if you follow the steps below:
Start by Doing Research
The internet should be the first stop every time you want to buy a mobile home. Here, you’ll get a clear sense of the available mobile homes.
You can begin by searching for the dealers or manufacturers that are found near you. Even though these homes are mobile, delivering them is an expensive and time-consuming process. If the dealer or manufacturer is near you, you’ll save a lot of money.
After you have found the brands within your area, you can check their websites to identify the services and lines they offer.
However, you’re unlikely to find clear pricing information during your web search. Sellers prefer keeping this key information from buyers, thus giving themselves an upper hand by forcing potential buyers to reach out or stop by.
If you want to acquire the pricing information, you can check the MHS (Manufactured Housing Survey) sponsored by HUD (Department of Housing and Urban Development). The U.S. Census Bureau collects this particular data and information.
Some of the information you might access includes monthly manufactured housing statistics, like the number of units to be shipped and their average prices. You can then determine whether you can afford a single-wide, double-wide, or triple-wide unit from the information.
You should note that the factors that affect the pricing of a mobile home include add-ons, location, brand, and size of the home.
Just ensure that you carry out sufficient research before investing in a mobile home.
Assess Your Finances
Once you get an idea of the pricing of your manufactured home, you should evaluate and assess your options when it comes to obtaining financing. Here, you must consider your income, along with your annual, monthly, and weekly expenses.
Consider the money in your inaccessible accounts, including money market accounts and savings accounts. Ensure that the state of your retirement and investment accounts makes you comfortable.
If you want to purchase a home after selling your current manufactured home, you should consider the sales of comparable homes, known as ‘the comps.’
You can also get your credit report if you want to finance your purchase. Ensure that all your financial documents are in one place since you’ll need them later.
Focus on Locations
One critical thing to consider is the location or land your home will be placed. The location or piece of land can limit your manufactured home options.
Let’s look at a few possibilities, as far as land location is concerned:
You Own the Land
If you own the land where you want to place a mobile home, then you’re good to go. The next step is identifying the type of unit you can buy or install.
For instance, some areas don’t allow manufactured homes, and others have restrictions on the type of home you can install on your property. In some cases, you might be allowed to buy a double-wide, and not a single-wide unit.
You Plan to Buy the Property
If you want to buy a land property separate from your mobile home, then restrict your search to areas that allow mobile home types that you wish to buy.
You can find a reputable agent to assist you in locating land to place your manufactured home.
You can also approach various lenders since they offer loans on mobile homes that are linked to a piece of land.
You Want to Lease the Land
There are several mobile home parks, otherwise known as manufactured home communities, where you can lease the land for your home. These communities come with exciting amenities such as clubhouses, swimming pools, and spacious parking spaces.
Even though most communities are available for everyone, others limit the occupants to particular groups, such as those above 55 years of age or retirees.
If you visit these manufactured home communities, you can even find homes for sale and spacious pieces of land for lease.
Go and Shop for the Home of Your Choice
Manufactured homes come with several things in common. For instance, the homes are space-efficient and come with a bathroom, along with cooking and sleeping facilities.
Another critical thing is that all the homes should comply with the HUD Code for quality and safety.
However, these homes might also differ in several aspects, such as appearance, layout, manufacturer, and age. These are, therefore, some critical decisions that you’ll have to make.
Buying a New or Used Mobile Home
Manufactured homes are attractive and come with fewer maintenance requirements. With that said, you’ll save even more money if you go for a used home.
There are mobile home communities that won’t allow you to install an old or used home. Old homes that were developed before 1976 don’t have the quality and safety standards of the homes of today. You should, therefore, choose wisely here.
Where Do You Purchase a Mobile Home?
You should approach a real estate agent or seller if you want to buy a used home. For a new home, you must narrow down your options first.
For instance, the United States has over 60 manufactured home manufacturers. These manufacturers differ in customer service, warranty length, and available models.
If you come across a manufactured home that you want to buy, near you, try finding where you can order yours or tour sampling units.
You can buy a mobile home via dealership or in a manufactured home park.
Single-Wides, Double-Wides, Triple-Wides and More
A mobile home is sometimes built and transported as a single family unit. Even though such mobile homes are the least expensive and smallest, they often come with certain restrictions.
The units are restricted in some community homes. Due to the financial responsibility of the home buyers and the value of the property, it sometimes is not easy to obtain financing.
Double-wide units are transported in two halves. Their price is about 1.9 times that of single-wide homes.
You can even get mobile homes that have three or more units, however, this also translates into a higher price.
Customize
Buying a mobile home offers plenty of options. For instance, you can select the layout of your rooms, lighting finishes, floor plans, and your preferred home model.
However, remember you’ll pay for any additions that you want.
Figure Out Ways of Obtaining Financing
The average price of a mobile or manufactured home is $85,438. This is very low compared to $310,800, which is the average price for buying site–built homes. This means that buying a mobile home is cheaper compared to other options, such as site-built and modular homes.
There are different financing options to pay for your mobile home:
Paying for a Mobile Home Using Cash
This is the most realistic option, especially for homeowners looking to downsize. The benefit of paying with cash is that there is no interest on the purchase of your home.
Getting a Chattel Loan to Finance Your Home
All mobile homes are categorized under personal property. Just like a plane, car, or boat, they contain an identifying plate.
You can finance these homes using chattel loans, which have low upfront fees, but higher interest rates than mortgages. In most cases, the terms are 20, 15, or 10 years.
To access chattel loans, you can either work with a dealer or find a reputable lender yourself. A home dealer can have a direct relationship with a private lender and can, therefore, help you enrol in the best loan programs.
Accessing a Mortgage
For a manufactured home, it is not easy to get a conventional mortgage. For instance, some government loans can only fund homes developed after 2006, and they must have a permanent foundation.
For your manufactured housing unit to qualify for a mortgage, you should own the land on which the home is placed. Mortgages are typically only available for real property.
There are two mortgage options that you can use to buy a mobile home: Freddie Mac’s ChoiceHome and Fannie Mae’s MH Advantage. The loans have a low down payment requirement of 3%.
The Construction Phase
If hookups are ready and you have selected a piece of land, the next step is getting on a delivery and installation schedule.
However, the time of construction varies for new homes. Some factories can develop a home within two days, however customization of a home takes a little longer.
Generally, you should expect about two to four months from when you place your order to delivery.
Ship Your Home and Install It
When moving your home to its location, it will be towed like a trailer, on a chassis, with wheels.
After the home arrives on its intended piece of land, the axles and wheels are disconnected, and the home is anchored, hooked up, and attached on-site. Any external features, such as skirting, stairs, and porches, are then added.
Move Into Your Mobile Home with Your Family
Now that you have installed everything in your home, it is fully yours, and you can bring in your belongings. You can involve a moving company to assist you in moving boxes and furniture into your new home.
This is the time to get to know your new home park and meet your neighbors. You can finally sit back, relax and enjoy.
The Final Verdict
Even though the process of buying a manufactured home isn’t easy, you can find your perfect home if you follow the steps that we have highlighted above.
However, you should ensure that the home you select is within your budget and meets all of your home requirements.
If you don’t have enough money, you can approach a lender to help you out. You can also involve a dealer in the process of locating a home and identifying a lender.
Don’t forget that there are several moving companies that help you facilitate moving into your new home.
We hope that you get the best home deal for you and your single family.
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5 years ago
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Justin Becker ·
Comments Off on 5 Tips for Buying a Mobile Home
Buying a mobile home can be challenging if you don’t know the right questions to ask.
With all the stigma around manufactured homes, it can be confusing to cut through the misinformation and get to the facts about manufactured housing.
Purchasing a mobile home is a significant investment. Often mobile homes and modular homes are cheaper than site-built homes by almost 20-30 percent. The floor plan will always determine the final price of a home.
According to the U.S. Census Bureau, manufactured homes can cost an average of $62,600, compared with $272,200 for a single-family site-built home.
According to new Census figures, an estimated 17.7 million Americans live in mobile homes, which is about 5.6% of the American Population.
Tips for Buying a Mobile Home
Not only are manufactured homes cheaper to own than site-built homes, but they’re also cheaper to build and maintain.
For instance, you will spend a considerable amount of money on property taxes, insurance, repairs, and so on with a site-built home.
When buying a new manufactured home, many aspects of the build quality are similar to those of a traditional home, but you should check a few things out.
Whether you are an investor or an end–user, you want a safe, streamlined, win-win mobile home transaction, right?
With that said, in this article, we’ll share five secrets to buying a manufactured home:
● Establish Your Price Range
● Establish Your Financing Options
● Pick Your Preferred Location to Place the House
● Speak With the Park Manager and Park Residents
● Understand Your Local Market
Establish Your Price Range
Most likely at the top of your list is your budget range. How much are you looking to spend on buying a mobile home?
With that said, your number one priority should always be what you can afford when searching the housing market.
When thinking of manufactured homes, you should also consider where to place the house.
Do you fancy mobile home communities, or do you have a plan to buy land? Either way, the cost associated with both options should be a top concern.
For community parks, look for those that are within your pricing range. The same applies to buying land. In other words, be honest with yourself and do your research.
Average New Mobile Home Cost (Nationwide)
Pricing can vary widely for manufactured homes, with factors like floor plans and standard options greatly impacting the price point.
Here is a breakdown of pricing, according to CostHelper:
● Single-Wide: $51,371
● Double-Wide: $96,529
● Triple-Wide/Multi-Wide: $100,000-$250,000
Establish Your Financing Options
Mobile homes are considered personal property, and not real estate, since it is not attached to the land.
As much as they are inexpensive, compared to traditional homes, mobile homes for sale in Cedar Springs, MI are not entirely easy to acquire. For instance, forking out $100,000, and upwards, for a new manufactured home is not an easy task, right?
Establish the options you have for financing the home. Unlike a traditional home, which takes longer to build, a manufactured home will take a few days, to months, to manufacture and deliver to your location.
It is also crucial to get your financing early. Mobile homes have become a little easier to acquire within the last three years.
More and more financial institutions have loosened up their requirements to accommodate the Manufactured Home Community.
With that said, like anything else, sometimes getting the funding can be a lengthy process.
For example, some lenders take a minimum of 21 days from start to finish, and that’s if you have all the required documentation they need and all of the stars are aligned perfectly.
If you own the land, you are likely to attract more lenders when buying the home. Also, some lenders may also support your bid to buy both the home and the land.
Ways to Obtain Mobile Home Financing
Once you figure out what kind of mobile home you want, it is time to find out how to finance it.
It’s possible to get a loan from the same sources as traditional mortgages, such as a FHA or VA loan.
Such options tend to give you longer repayment terms. However, depending on your situation, you may opt for a nontraditional path, with a shorter monthly payment term. This could include chattel loans or personal loans.
Here are all of the various options available to finance a mobile home:
1. FHA Mortgage
2. VA Mortgage
3. Fannie Mae
4. Freddie Mac
5. Chattel Mortgage
6. Personal Mortgage
Pick Your Preferred Location to Place the House
The location of the house is as essential as buying the home itself. You want to live in a strategic area where you can get almost anything within walking distance.
For example, if you want to shop around, you will want to take a few minutes to get there, rather than taking the bus.
When you’re picking out a location where you’d like to purchase a manufactured home, use the “SSS Method” or Safety, Schools and Scenery.
Research the Safety of the area by checking the local city data websites. You will want to know your neighborhood.
With that said, one of the best ways to compare scenery is to go out and explore physically.
You will be able to get the feeling of the prospective areas you will live in with your family.
Speak With the Park Manager and Park Residents
The park manager will give you insights into the rules of the park; the Dos and Don’ts. Also, it is a brilliant idea to engage other park residents to get their perspective of life within the mobile home park.
Such is one among many questions you need to ask the residents:
Is the park pet-friendly? It is crucial to find mobile home parks that accept pets if you are a pet lover.
You will also want to know the lot rent of different mobile home parks in Cedar Springs, MI so you are able to help compare and make the proper decision for you and your family.
Understand Your Local Market
Do you want a single-wide or double-wide manufactured home?
One thing we can all agree with is to avoid confusion and overspending when buying your home.
It is crucial to understand whether your area is a seller’s or buyer’s market regarding traditional real estate.
If your home market is experiencing a strong seller’s market, then this may spill over into local mobile homes as well. Such may cause the price and demand to rise.
With that said, you will need to act quickly to purchase a mobile home you desire.
Final Thought
If you want to buy a mobile home, the secret to a successful purchase is adequate research.
Identifying the house, where you will live, and the actual purchase is a lengthy process that requires your total attention.
Lastly, you want to avoid higher rates, right? Always compare the interest rates of different loan lenders. Often, your credit history will play a role in determining the higher interest rate.
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5 years ago
·
Justin Becker ·
Comments Off on Why You Should Buy a Mobile Home: 7 Great Reasons
Finding your next house can be quite an overwhelming venture.
For first–time mobile home owners, it can be challenging to pick the best choice of house arrangement from the range of options that are available.
Being that mobile homes are one of the most popular forms of housing, you will enjoy some benefits that you are unlikely to get from buying a stick-built home.
For years, the manufactured home industry has undergone an overwhelming gradual change that has seen homebuyers enjoying these quality and luxurious homes.
For example, granite countertops offer an aesthetic appeal to your mobile home’s interior, and are available at an affordable price.
Today’s homes are customizable, so you can get the design layout of your taste.
Why You Should Buy a Mobile Home
Manufactured homes are regulated by the HUD Code for mobile homes, which is the Housing and Urban Development division of the federal government.
Manufactured homes are prefabricated structures built in a factory on a permanently attached chassis before being transported to the site. Learn more about how mobile homes are built here.
You can buy your mobile home and place it in a mobile home park or buy your own land. Residential park homes are very popular right now.
Not only does a mobile home park offer comfortable and modern accommodations, it is also cost-effective, safe, and built as part of a welcoming community.
If the idea of living more affordably appeals to you, manufactured housing may prove to be a good option.
If you are thinking of buying a mobile home, here are seven great reasons why you need to strongly consider moving forward:
1. It is Cost-Effective: It is Better than Buying a Site-Built House or Renting an Apartment
2. Mobile Homes Offer You Flexibility
3. Mobile Homes on Land Appreciate like Other Homes
4. Mobile Homes are Safe
5. Mobile Homes can be Financed
6. You will get Your Home Faster
7. Mobile Homes are Low Maintenance
It is Cost-Effective: It is Better than Buying a Site-Built House or Renting an Apartment
With buying mobile homes for sale in Cedar Springs, MI, you save in multiple ways. The most obvious is the cost to manufacture the house.
Buying a site-built house can be challenging since it is often highly priced when compared to manufactured homes.
Although they are both built from the same material, manufactured homes can cost up to 30% less than a stick-built house. Perhaps this is the most beautiful thing about manufactured homes. Since they are mass–produced and built on assembly lines, manufactured homes cost less to make, thus less to buy.
For instance, as of September 2018, the median price of a house in the United States was $225,700. Depending on where you live, the average price of a house can be lower or much higher. Comparatively, the average cost of a manufactured house in 2018 was $87,100.
On average, a one-bedroom apartment can cost you around $1,000 monthly. In contrast, you can buy a manufactured house with a payment of $450 per month and a lot rent of $350 per month, if you are renting the land. Learn what a land-lease community is here.
Suppose you spend around $100 for maintenance a month. Still the overall cost will almost be the same as renting an apartment. You can check out these mobile home maintenance tips for further assistance.
However, you will enjoy a bigger space in a luxurious house, all while also having the option to resell and recoup some cash. View our guide on selling a mobile home in Michigan here.
Mobile Homes Offer You Flexibility
One of the best things you can enjoy with manufactured homes is flexibility. Especially since a mobile home is usually more affordable than a stick-built home and only semi-permanent. What we mean by that is, if you own land, you can place a mobile house on it now, and remove it in the future.
What you need to know is that even though manufactured homes are not easily moved once set up, they are easier to carry than a stick-built home, which is completely unmovable. Learn how much it costs to move a mobile home here.
Once a stick-built home is constructed, it is there permanently. With your home mobile, you can move freely without worrying about it.
Mobile Homes on Land Appreciate like Other Homes
Undoubtedly when the land value increases, your home will likely gain some value too. So, if you have your house on private land, you are likely to reap big.
Many people are caught up in the argument that this type of housing depreciates. Well, you are right; but seeing it from another angle will give you a glimpse of what could go right if you invest in them. Find out if a mobile home is a good investment here
Real estate does not always go up in value, as many people discovered over a decade ago. However, when houses are rising in value over time, manufactured homes with their own lots go up with them. Learn how to increase the value of a mobile home here.
Mobile Homes are Safe
People often wonder ‘are mobile homes safe?’ Manufactured homes are among the safest housing choices available today. The Manufactured Housing Institute provides some solid information about manufactured house safety.
Manufactured homes are built to the HUD code, which came into effect in 1976. The U.S. Congress passed the bill in a bid to improve the safety standards of mobile homes, which were then on high demand. In fact, post-1976 manufactured homes have lower rates of fires than even site-built homes. Also, they are built to withstand strong winds, unlike the homes built before 1976. Learn about wind zone ratings for mobile homes here.
Manufactured homes perform as well as site-built homes during a storm. For example, during the Derecho storm of 2020, 140mph straight-line winds pounded the Cedar Rapids, Iowa area for 45 minutes. As a result, manufactured homes in Hames communities sustained less damage than stick-built homes, apartments, and commercial properties. None of the Hames manufactured homes tipped over.
Mobile Homes can be Financed
Many people have been mistaken about chattel mobile home financing. While they are not categorized as real estate properties, that does not mean you can’t get financing for manufactured homes from financial institutions. Per the norm, it all comes down to your credit score.
If you have a good credit history, you are likely to attract lenders and get your house financed. Learn what credit score is needed to buy a mobile home here.
For instance, through HUD programs, banks will loan up to $69,678 on a mobile home that is on a rented lot, and up to $92,904 on a house attached to a lot.
Here are various financing options you can use:
- VA Loans
- Personal Loans
- FHA Loans
- Fannie Mae
- Freddie Mac
- Chattel Loans
Please remember to compare different financial institutions’ interest rates before buying your house.
You will get Your House Faster
Another often-overlooked advantage of assembly line construction of your house is the speed at which your home will be made.
Manufactured housing has gone through several revolutions, and we are a far-cry from the “trailer home” of yesteryear. Learn how a trailer differs from a manufactured home here.
Construction times for mobile homes vary, but they are always faster than a stick-built home. Typically, it takes about four months from house order to house move-in.
With that said, the actual construction time to build a manufactured house in the factory is just a few days. Some more affordable variants of manufactured homes can be built in as little as a few hours, while others will take several days due to things such as finishing touches on drywall, interior arches, or double-insulated windows.
Efficiency of construction is a big advantage of the factory building process. Therefore, one can get their house within months after order.
Mobile Homes are Low Maintenance
Think about how much work a traditional property demands of you! Stick-built homes demand maintenance that is expensive, especially when compared to manufactured homes. You will part ways with a lot of money when it comes to maintenance.
In other words, maintaining this type of house is not the same as maintaining a stick-built home.
Modern manufactured homes benefit from convenient, intelligent construction. This means it is never likely that you will need to repair anything at expensive rates.
Older individuals who move into mobile homes located in mobile home parks in Cedar Springs, MI will also benefit from single-level living.
Still there is less to maintain and repair, therefore there is less hassle and money spent!
What You Need to Know About Mobile Homes
Gaining knowledge is important before buying any product or real estate property. Before you rush and find that mobile house dealer, here are a few things you should know about manufactured homes:
Types of Mobile Homes
Manufactured homes come in a variety of different floor plans, and they are classified according to their size.
A single-wide mobile home is the most common classification, typically ranging from 600 square feet to 1,330 square feet.
The dimensions of single-wide mobile homes are usually 14 to 18 feet wide and 66 to 80 feet long, and they will usually feature one to two bedrooms.
A double-wide is actually two single-wides joined together to create a larger house. Typically, double-wides are family homes, as they offer larger floor plans. See our list of top double-wide mobile home dealers in Michigan.
Delivery and Setup
Whether you are installing a mobile house on a large rural lot you own or on an undeveloped site in mobile home parks, there are things you must do to prepare the land.
Some communities will prepare the site for you, while others put you in charge of hiring folks to do the required site work.
How to Insure a Mobile House
Much like a typical house, you will need a manufactured home insurance policy to protect the house and its contents. If you are getting a loan, mobile house insurance will almost certainly be required by the lender.
Most communities require residents to carry insurance as well. The good thing is that many insurance companies offer mobile house insurance, so you will be able to shop around for the best rates.
Final Thought
Mobile home ownership is a popular form of housing. If you are thinking of buying a mobile home, this could be one of the best decisions in your life. You will save money!
They are energy-efficient, affordable and offer flexibility. These features are what makes it an attractive form of housing for many home buyers.
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