One of the main reasons why people chose manufactured homes over site-built homes is the speed at which they are built. Since they are made in a factory, they cost a fraction of what a site-built house would cost. This saving on the cost of production is passed on to the buyers, giving more people the chance to own homes without risking bankruptcy in the process.
Know the Difference:
While the terms modular, manufactured, and mobile homes are commonly used interchangeably, they differ in terms of house construction.
Manufactured Homes
These are constructed in a factory and later moved to the home site. Once on location, it is not easy to distinguish them from on-site-built homes. Usually, manufactured homes are not moved again once on site. Experts oversee the process of moving from the manufacturing plant to the home location to ensure accuracy and consistency.
Mobile Homes
These are simply the same manufactured homes built before June 15 of 1976, before quality changes were made on the HUD policy. Today, mobile homes are obsolete and have been replaced by modern, quality-controlled manufactured homes.
Modular Homes
These are also houses built in factories. The main difference is that these are governed by local building codes and not state ones. Modular homes can be built on a temporary chassis or a permanent one, referred to as off-frame and on-frame homes, respectively. The choice between an on-frame and off-frame modular home determines the assembling process once it is transported to the destination site.
Understanding the Value
When buying a manufactured home, you will go through a dealership, which can be compared to buying a car from a dealership. These salespeople use markups to make money since they are paid on commission. On average, the commission charged for every manufactured house is $11000, with 20% as the dealer’s cut. This means that salespeople make up to $2000 for every new manufactured house sold, making them very convincing when selling the house.
The best way to ensure you end up with the manufactured home you want is to have a target price range and financing option. This will save you from the high-pressure sales tactics employed by sales agents. Researching is the most important part of the process.
You can use a home affordability calculator to get an accurate estimate but, generally speaking, you should expect to pay anything between $32,000 and $150,000 for a manufactured home. The cost is determined by whether you also need to buy the lot of land where the house will go and the state you live in. You can get an FHA-insured loan to secure a manufactured house.
The Location: Pay Attention to the Security of the Area
As is common with scouting for the perfect location to buy a house in terms of the security of an area, it is also important to consider a safe location for a manufactured home. If you want to live in a safe area with a low home invasion rate, you need to ensure your home is safe enough to discourage an invasion. Consider well-researched product recommendations like deadbolts for doors, jammers for the windows, and a security system that includes cameras and alarms.
Additional Costs You Might Not Expect
Apart from the actual cost of buying a manufactured home, there are other additional costs to consider once you own the house:
Upgrading
Any upgrade to a manufactured house will increase the price. Exterior additions like stairs, porches, fire pits, and skirting can only be added after delivery, making them extra expenses for your home.
Insurance
You should also consider your insurance options. The more expensive your manufactured house is, the more it will cost in an insurance policy. Factors like the exterior design and construction quality all affect the insurance rate you pay for the home. Generally, you are required to pay annual insurance for your property.
Delivery and Setup
Most manufacturers do not charge extra for the delivery and setup of the home. However, this is still an important factor to consider and ask when choosing a manufacturer. Going with a local manufacturer will reduce the cost of delivery if it is charged separately.
Land
To set up a manufactured home, you are required to own a lot of land in a manufactured home community in your state. You can choose to lease or buy a lot depending on your preference and budget.
When moving to a mobile home community, you will be required to pay fees for shared amenities like swimming pools and laundry facilities. This can be in addition to the lot payments.
Taxes and loans
When it comes to taxes, you can expect to pay real estate taxes to the local government if you own the lot of lands the manufactured house sits on.
If you are leasing the land but own the manufactured home, you can expect to pay property taxes. Some states will demand these taxes when setting up the manufactured home, while other states require you to pay the tax annually to the motor vehicle department.
When it comes to loans, you are required to come up with a loan origination fee, paid upfront or rolled out from the loan amount. The financing guidelines differ from one financier to another.
Even with these additional costs, manufactured homes are still much cheaper compared to site-built homes. It is always advisable to consider all charges and include them in your overall budget to ensure you do not feel short-changed in the end.
Buying a Used Manufactured House
If buying a new manufactured house sounds too expensive now, you can consider going for a used manufactured house. If you are considering investing in a used manufactured home, here are the most important factors to consider:
How Old Is It?
The age of a manufactured house is an important consideration to make because of HUD guidelines. Any manufactured house built before June 15 of 1976, does not meet the HUD code, which guarantees the quality of the built home. The HUD code is a law that governs the building of manufactured homes to ensure they meet safety and stability guidelines.
Materials Home Is Made From
Flooring, walls, and roof are important considerations to make when choosing a used manufactured house. The best materials used to make the walls, floor, and roof should be sturdy, long-lasting, and easy to maintain.
Home Stability
Manufactured homes are required to be attached to a permanent foundation. This is part of the stability and safety guidelines stipulated in the HUD code for manufactured houses.
If the interior doors and kitchen cabinets cannot stay closed, it could be a sign that the home is un-level. This stresses the joints of the home, which leads to squeaks and leans.
Conditions the House Is In
When choosing a used manufactured home, do not be swayed by the seller or outlook of the home. Before you invest in a used manufactured home, you need to have it examined by a qualified inspector. This is the only way to tell if there is any water damage to the property, plumbing, and electrical wiring issues. Even when the home seems in good condition, it always helps to have it inspected.
Always look for information about the home manufacturer to understand the quality of the home. Generally, the best manufacturers should make use of modern, sturdy materials to manufacture homes. If the home is a bit old, learning more about the manufacturers will tell you about the quality of the home.
Conclusion
When buying a manufactured home, it is important to do due diligence to ensure you make the right choice for your investment. By understanding how to choose and maintain a manufactured house, homeownership is closer than ever.
