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More and more people are choosing to buy mobile homes as their primary residences. While there are some definite advantages to doing so, there are also some potential downsides that you should be aware of before making this decision. Here, we’ll take a look at both the pros and cons of buying a mobile home so that you can make an informed decision about whether or not this option is right for you.
The Pros of Buying a Mobile Home
1. They’re More Affordable Than Traditional Homes
One of the biggest advantages of mobile homes is that they’re much more affordable than traditional homes. The average price of a new manufactured home in 2018 was just over $50,000, while the median price of a traditional home was nearly $225,000. This makes mobile homes an attractive option for first-time homebuyers or anyone who’s on a tight budget.
2. They’re Often Located in Desirable Communities
Another big selling point for mobile homes is that they’re often located in desirable communities. Many people who live in manufactured housing communities enjoy amenities like swimming pools, tennis courts, playgrounds, and Sensei-organized social events. These types of communities can be especially appealing to retirees or families with young children who are looking for an active lifestyle.
3. They Can Be Easier to finance
Another advantage of mobile homes is that they can be easier to finance than traditional homes. Because manufactured homes are classified as personal property, they can often be financed with personal loans rather than mortgages. This makes it easier for people with bad credit to get approved for financing and can also help keep interest rates low.
The Cons of Buying a Mobile Home
1. They May Not Appreciate in Value
One potential downside to buying a mobile home is that they may not appreciate as traditional homes do. In general, manufactured homes depreciate at a rate of 2-3% per year, while stick-built homes appreciate by an average of 4%. This means that if you ever decide to sell your mobile home, you’re likely to get less money out of it than you would if you had purchased a traditional home.
2. They Can Be Difficult to Sell
Another potential downside to owning a mobile home is that it can be difficult to sell when the time comes. Because there’s such a limited market for them, it can be tough to find a buyer who’s willing to pay what your home is worth. This can make it difficult to sell your home in a timely manner or even at all in some cases.
3. They May Not Qualify For Certain Programs
Lastly, mobile homes may not qualify for certain programs like the Homeowners Protection Act (HOPA) or the National Flood Insurance Program (NFIP). This means that if you have an FHA loan on your manufactured home, you may not be protected from foreclosure if you fall behind on your payments or if your home is damaged.
As you can see, there are both pros and cons associated with buying a mobile home. It’s important that you consider all of these factors carefully before making your decision so that you know what you’re getting into and what kind of investment you’re making.