The benefits of mobile homes. Better than renting?
Is mobile home living a good choice for me?
If you are tired of apartment life and can qualify, a mobile home may be a good choice. You may have seen the very appealing pricing on mobile homes. In one mobile home park near my office in Berthoud, CO, prices vary from $53,000 to $200,000. The value of a mobile home is determined by a few factors. Size in square feet, condition, age of the home and the cost of lot rent are of almost equal importance.
The home loan payments may be less than the monthly payments for a new pickup truck. An additional monthly expense to factor in will be the lot payment. In northern Colorado, lot rent varies from around $850 to $1500 per month. You will also need to be approved by the mobile home park management to move in. The criteria they use in the approval process include credit score and past payment history. Also, much like renting an apartment, there is always the possibility that your lot payment will increase. With a mobile home you have the maintenance expenses of the home, just like with a traditional detached home. You may still find these to be reasonable tradeoffs with the lower home payment.
As with any house purchase, the neighborhood is very important to take into consideration. Some mobile home parks are specifically for people who are 55 years old or older. There are others that are family oriented, or perhaps better for college students. Fort Collins, for example, has many student-oriented mobile home parks. One all-ages mobile home neighborhood I know of is located in a very walkable town. When faced with some people cutting through the neighborhood in their cars to get into the center of town, the park management installed numerous speed bumps. Traffic was cut significantly, and people who lived in the neighborhood started walking more. These are the things that define that neighborhood now, so if you prefer a walkable area to driving, it could be a good fit. You’ll want to think about not only what type of neighborhood appeals to you, but what would appeal to potential buyers if you plan to sell your house in the future.
Mobile home purchasing has some differences from other home purchases. Most lenders don’t do loans on mobile homes, so you will need to find a lender who specializes in those loans.
How do I find a lender who specializes in mobile home loans?
It is possible that your REALTOR may know a mobile home lender. However, many REALTORs have not been involved in mobile home transactions because they are a little more specialized and kind-of rare. If you are interested in a particular house, usually the seller’s listing agent knows the local mobile home lender.
Buying a mobile home is a situation where going to an open house is especially helpful. The agent holding the open house is very likely to have lender information. Your agent can get that information from the seller’s agent for you. The seller’s agent may also have other information you’d want to take a look at before buying, such as neighborhood covenants and rules.
Is owning a mobile home better than renting an apartment?
Historically, mobile homes have not had the appreciation in value that other homes have had, but any appreciation is a huge benefit of homeownership over apartment living. If paying for somewhere to live is a part of life, you may as well take advantage of the appreciation on a home if you can. With home ownership, in any form, the payments you make over time mean you own an increasing share of the appreciation value. In renting, you pay for a place to live and the increase in value belongs to your landlord.
This information is intended as friendly advice. Nothing presented here is to be considered legal advice.