Thoughts on Manafactured Homes

[Anonymous]

I am hoping to buy a home sometime next year.  I will more than likely be approved for somewhere between $75,00-$95,000 due to my lower income. If it's the lower end of the spectrum then my options are really limited. I live in a coastal county so insurance is higher.  I had a manafactured home 15 years ago and loved it. I could not move it to South Alabama due to wind zones so I sold it.  In case of a fire they do burn rather quickly so that concerns me. All modern ones are equipped now with wired in smoke alarms with battery back up I believe.

Things have changed so much with these homes in the last 15 years. Would anyone here consider buying one? They are better built and seem to last longer. Some of the models I have looked at look better than some houses I have seen for sale in my price range.  I know the house is a much better investment in the long run. I can't buy a condo due to costly HOA fees in this area. I am renting one now. The units in here sell for $88,000 and the HOA is over $220 a month. It's only a 2 bedroom, 2 bath and I need 3 bedrooms.

[cartwrna]

Heads up, this may get moved to the mortgage section due to the nature of it. Here is my input though while it's still here:

Manufactured homes have came a long ways, and are built very well. Me personally, I need the feel of a true home. My grandmother has lived in hers for 15 or so years now though and it's still in excellent shape, and quite roomy! 3 bedroom 2 bath. I have other family members that have been in theres for 15-20 years as well and have had no issues. A lot of people will knock them, but if taken care of they last for a long time. There are some very nice manufactured homes as well, and you get a ton of bang for your buck. I'd say if your ok with one then yes they are safe to buy. I'm not sure how easy it is to get a mortgage loan on one though, you may have to shop lenders for that.

[Anonymous]

Thanks for sharing your thoughts. I meant to put this on mortgage boards. I don't know how to move it. I went looking last weekend to see what they were like and for pricing. Some of them were nicer than the condo I am renting at least on the inside.

[pipeguy]

Manufactured homes are treated differently as far as financing due to the fact they can be moved and many are located on unowned land (land lease, rent, etc).  Typically these units are financed through sales agents kind of like car sales, interest rates are typically higher, sometimes much higher, and most of the times as far as new ones, financed through the seller (dealer). 

There have been several attempts by Congress to address this issue as far as full disclosure of the selling agent being the finacing agent and several attempts by the manufacturers to revise the limits for these loans, one attempts passed the House this year, but I don't believe its been taken up by the Senate as of yet. 

Expect to pay a higher interest rate, shorter terms and higher insurance, plus the house will NOT increase in value as most real estate does. Of course you can always buy a used one, but if you do make sure you know exactly what the terms are for land/lot rent if you don't the property. As a housing option its a choice, as a "real estate investment" its a poor choice as far as future resale value

[Anonymous]

Personally, I would be Ok with a manufactured home.

My parents bought one in the 80s and it did Ok.  It was a double wide and the place they were renting a lot from in SE Florida was taken over and re-purposed and they were forced to move it, after living there for 8 years.  They had the place broken down and moved about 20 miles north into a newer area.  I am not so sure the move was done correctly, as they had problems with the support for the flooring a couple years after the move.  The moves for the units that were displaced were paid for by the site owner so it was impossible to prove anything and get any reimbursement.

I would be Ok with one, providing it was anchored down correctly, since you said you were in a coastal area, and I presume storms are possible.

The new park that they moved to was very nice with limited access and a gated entry, with a small lake and canal system. 

HTH

[Anonymous]

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@Anonymous wrote:

I am hoping to buy a home sometime next year.  I will more than likely be approved for somewhere between $75,00-$95,000 due to my lower income. If it's the lower end of the spectrum then my options are really limited. I live in a coastal county so insurance is higher.  I had a manafactured home 15 years ago and loved it. I could not move it to South Alabama due to wind zones so I sold it.  In case of a fire they do burn rather quickly so that concerns me. All modern ones are equipped now with wired in smoke alarms with battery back up I believe.

Things have changed so much with these homes in the last 15 years. Would anyone here consider buying one? They are better built and seem to last longer. Some of the models I have looked at look better than some houses I have seen for sale in my price range.  I know the house is a much better investment in the long run. I can't buy a condo due to costly HOA fees in this area. I am renting one now. The units in here sell for $88,000 and the HOA is over $220 a month. It's only a 2 bedroom, 2 bath and I need 3 bedrooms.

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I would definitely consider one. I would not buy a 'park' unit though, I would look at a new build on a purchased lot. I don't know what your area is like as far as parks go, but space rent where I am (Portland OR) is just ludicrous. I've seen it upwards of $700 in some places. Lowest space rent I've seen within 25 miles of portland is $533. 

[J91605]

I grew up in a manufactured home and never knew the difference. Like most major buys in life you get out of it what you put in it. I'm not talking about money, I'm talking about maintenance. If something brakes repair it. I live in a conventional home now, but would own a manufactured home. You really can get a lot for the price.

[Bankrupt2019]

New manufatured housing is far better than it was even 10 years ago. I would venture to say better than site built stick framed homes. As of current they are basically  houses that can be moved. However, as others have pointed out, financing can be a bit tricky.

[smitty1]

A couple of things to remember with a manufactured home in a park- your lot rent is kind of like an apt or similar. 6-12 month lease, etc.  My parents lived in one for years, their rent went up every time the lease expired.  The owners paid for garbage and water and sewer for a while- then raised everyone's rent cost and made them pay for those utilities.  New owners raised the rent again, and quit paying to have landscaping down.  All legal, all you can is move your unit.  That costs thousands, if you can find a nice park to move to... My parents basically had to give it away when they moved, no one wanted to buy it at a fair price.  This is in Puget Sound, WA area, parks are hard to find and run 6-700 a month with no perks, and all kinds of covenants....