Mobile homes have an unfair reputation for being low quality or poor quality. That is simply not true. A mobile home is a great way to own your own property, place it anywhere you choose, and for less than many more stationary homes typically cost. It is becoming an increasingly popular option, with variations such as tiny houses and mini cabins becoming real estate favorites.
If you’re reading this, you’re probably considering making a purchase yourself. Before you go shopping for the perfect little place for you, here are a few things you need to know.
There are many types of mobile homes
Mobile homes are not all the same single level family affair that you may be used to. There are multiple styles and types, as evidenced by the couple mentioned above. Tiny houses are miniature houses that try to use every inch of space, all in a very small package. Mini cabins are similar, although they are usually one-bedroom log houses with lofts.
There are also multi-level mobile homes. These are less portable which makes them a mixed bag. But if you’re looking for a prefab and you’re not worried about being able to move it so easily, it’s definitely a good option.
If portability is your goal, there are models that come with wheels, which can be kept on at all times or slid underneath with a few tools.
The cost of mobile homes can vary greatly
With so many styles of mobile homes, it probably won’t surprise you that these homes don’t come in a standard price range. According to Forbes, the average cost of a tiny home is around $23,000. But the average cost of a single-story mobile home is around $64,000. Multi-level manufactured homes can vary, but can range from $50 to $100 per square foot.
Price variance is one of the reasons it’s important to know what you’re looking for in a home. You should also consider other costs associated with your home. The land on which you are building it, for example, or the connection costs for electricity, plumbing, gas, etc. These may not be included in the price and therefore require installation and additional fees.
Quality is a factor
Not all mobile homes are created equal. In fact, going to the wrong provider can lead to serious headaches. A strong storm may topple it or damage the exterior, parts may fall, etc. It is critical that you find a reputable dealer or construction team to help you find the right mobile home.
You’re looking for quality materials, designs, and authoritative reviews for the people you work with. If you find all three, you’ll end up with a beautiful, solid house.
Manufactured or prefabricated houses are amazing
These house styles are fantastic. Not only are they lower in cost than scratch models, but they are also easier and faster to install. A crew as small as two people can build a prefab or manufactured mobile home, using fairly basic tools. Sometimes it can be done in just one afternoon.
That’s because the pieces are already together and ready to combine. They have been shipped from the factory with everything you need, to the location you specify. So the people putting it together just have to go through and hook up all the parts, from the walls and foundation to the different rooms and compartmentalized elements.
Getting a loan can be complicated
When you go to get a mortgage you go to a bank, right? Most mobile homes will not qualify for the mortgage programs. Instead, you must go through an official mobile home company that specializes in financing, or go through a credit union that has a loan specifically for this style of home.
The idea is that mobile homes are portable and many people confuse this with temporary. They are also lower in cost, so there is less profit to be made through interest rates. Many banks do not see the point in financing them.
Fortunately, it is not difficult to obtain a loan from one of these specific places. If you have an account with a credit union, that’s much better, as that improves your chances of approval, and they often have competitive rates.
location is everything
You could have a beautiful, well-designed and amazing mobile home. But if you’re sitting on an ugly lot in the middle of a crowded area, what good is it? You want a location that is central to what you need, yet is beautiful, functional, and offers everything you’re looking for. Some people choose mobile parks to have a neighborhood feel. Others choose more isolated places where they can enjoy a piece of land.
Regardless of what works for you, location is a very important part of your mobile home purchase. It’s also a good portion of what you’ll pay. It is possible to rent land, such as in mobile parks. But buying your own ensures you have more equity in your property. It’s a good investment, even if you plan to uproot yourself and move elsewhere. Land is also cheaper than you might expect, depending on the area.
Retail Cost vs. Invoice Cost
Once you know what you’re looking for and where you’re going, it’s time to turn to a reputable dealer. When it comes to closing costs, be sure to ask to see the cost of the property bill. If they resist, insist on it or possibly go to someone else. This is a better representation of cost without the inflation that can come from retail markups.
Don’t let them corner you into telling you your budget or what you can pay monthly. Just ask them to give you fixed invoice prices for a model described, and then negotiate based on that price.