What to Know if You’re thinking About Buying A New Manufactured Home
Formerly known as “mobile homes,” manufactured homes are sold mostly through retail dealerships and can be customized to fit your needs and budget.
Manufactured homes are an affordable alternative for home buyers, and are available with features and amenities found only in site-built homes, and will have a cost of about 50% less than a comparable site-built home.
Here’s what to consider if you are thinking about buying a new manufactured home.
What is a manufactured home? – Manufactured homes are built in factories according to construction and safety standards set by the U.S. Department of Housing and Urban Development,or HUD. The homes are built on permanent chassis – base frame with wheels – and then professionally transported in one or more sections and installed on site. The wheels and axles are removed, and the homes are anchored in place. They can be set on permanent or semi permanent foundations.
What is a mobile home? – The terms “mobile homes” and manufactured homes are sometimes used interchangeably, but there is a big difference. Mobile homes are factory-built homes that were built before June 15, 1976, when the federal standards went into effect. Manufactured homes are those built after that date,
The Manufactured home industry has come a long way in 40-some years, so new models are a far cry from the mobile home stereotype.
Buying a manufactured home- Most manufactured homes are sold through retailers. You may find retailers and available homes near you here at ManufacturedHomes.com., including a large selection of 3D videos of interiors of model homes available, as well as online price quotations before visiting a retailer.
Cost of a manufactured home – The average sales price of a manufactured home in November 2019 was $81,600, according to the latest available data from the U.S. Census Bureau.
But the basic home price isn’t the only cost to consider. There are also upfront costs for land if you purchase a lot and for adding any features, such as steps or patios, or sitting the home on a permanent foundation. Often the cost of transporting and setting up the home is included in the price. Make sure you understand everything that is required and include those costs in your budget.
Residents in manufactured home communities typically pay ongoing ground rent as well as fees for shared amenities, services and utilities. Factor in those costs when thinking about living in a community.
Manufactured home loans- You can find a lender through a manufactured home retailer. Manufactured home lenders and retailers have agreements to work with one another. Or you can find a lender on your own that’s willing to finance a purchase from that retailer.
Two main types of loans are used to finance a manufactured home: mortgages and chattel loans. Generally, manufactured homes must be permanently fixed on a foundation and titled as real property with the land to be eligible for financing with a mortgage. Other manufactured homes are titled as personal property and are eligible for chattel loans.
Source: NERD WALLET
