Today’s manufactured homes have come a long way from granny’s trailer. 👵🏻 Many are loaded with the latest features and drool-worthy floor plans. 🏘️ The best part? They cost a fraction of the price of a traditional home. 💸
But…before you go and plop down that down payment, you gotta do your research. Here, we lay out everything to consider before taking the leap. 👇
Here’s Five Fast Facts on buying manufactured homes:
- 🏡 Home Sweet Home - Did you know that a new manufactured home costs roughly a third of the price of a site-built home? According to data from Realtor.com, as of last December, the median listing price for a manufactured home was $159,500. Compare that to $420,000 for an existing single-family home.
- 🧮 Budget Basics - Financing a manufactured home is super similar to a standard home. To figure out how much house you can afford, get clear on your budget and cash flow. Use an online calculator or head over to the U.S. Department of Housing and Urban Development (HUD) for free resources.
- 💡 All the Extras - When you’re crunching those numbers, don’t forget about key expenses like maintenance, insurance, and taxes. A big perk of manufactured homes is their energy efficiency, which will save you on utilities over time. Another plus: a new manufactured home is move-in ready. Traditional fixer uppers may seem like a good deal, but could come with a ton of surprise costly repairs.
- 💰 What’s Your Flavor? - When it comes to financing manufactured homes, the two most common options are personal property loans and traditional mortgages. Personal property loans (or chattel loans) aren’t secured by the land and are easier to get. The downside: they often come with higher interest rates. Things are stricter with a traditional mortgage. The home must be titled as “real property,” AKA you need to own the land underneath and attach the home to a permanent foundation. However, interest rates are usually lower.
- 📈 Like a Fine Wine - A common misconception is that, like your car, a manufactured home loses value over time. However, if you’re keeping up with routine maintenance and repairs, a manufactured home can rise in value just like a traditional one. In 2024, the national median price per square foot for a manufactured home jumped up 1.2%. The median price per square foot of a single-family home rose 2.5%.
🔥Bottom line: Many manufactured home dealerships have lending options, but they’re not the only option. Don’t be afraid to shop around for the best deal. Check at least three lenders to get a feel for what’s available. Speaking of homes, can you *really* trust home values on Zillow? Head over to this article for our two cents!
Have you purchased a manufactured home?
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