Buying a Manufactured Home? Ask These 4 Questions
With stylish features and floor plans, many of today’s manufactured homes break the old “mobile home” stereotype–without breaking the bank.
The Manufactured Housing Institute, a trade group, reports that, on average, newly manufactured homes cost about half the price of site-built homes. Factory construction lowers material and labor costs, and a federal building code makes inspections more efficient.
Lesli Gooch, CEO of MHI, says manufactured homes are an attractive choice for many buyers, from entry-level buyers to retirees. “It’s affordable, but it’s also turnkey,” she says.
If you’re shopping for a manufactured home in the new year, ask these questions to shop smart and stay informed.
How much can I afford?
Manufactured homes are one of the lowest-priced home types on the market. In December 2024, the median listing price for a manufactured home was $159,500, compared to $420,000 for an existing single-family home, reports Realtor.com.
When it’s time to set your budget, no one knows your cash flow better than you. It’s your responsibility — not a lender — to determine a monthly payment that works for you.
Which type of loan is best for me?
To finance a manufactured home, the most common options are traditional mortgages (like conventional loans or FHA loans) and personal loans. A traditional mortgage has stricter qualifications, usually, the home must be titled as “real property” which means you need to own the land underneath and attach the home to a permanent foundation. But average rates or lower with a mortgage and you’ll have more options if you struggle to make payments.
Will I own or lease the land underneath
You may have heard that all manufactured homes lose value over time. But today, that’s not always the case. When you keep up with maintenance and repairs, a manufactured home can grow in value like a site-built home. In 2024, the national median price per square foot for a manufactured home climbed 1.2%, while the median price per square foot for a single-family home climbed 2.5%, reports Realtor.com.
Am I ready for the responsibility of homeownership?
The cost of homeownership doesn’t end with the mortgage. Leave some wiggle room in your budget for ongoing expenses like taxes, insurance, and maintenance. One plus, Gooch notes: With their excellent energy efficiency, manufactured homes tend to have a shorter to-do list when you move in.
‘It’s not grandma’s trailer, right?” Gooch says. “These are quality, resilient homes.
