Buying a mobile home - Revolution English

Mobile homes are popular for people looking for affordable and flexible housing options. Approximately 22 million people in the United States live in mobile homes, and it’s easy to see why. These homes offer a range of benefits, including cost-effectiveness, mobility, and adaptability. If you’re interested in becoming a homeowner at a fraction of the cost associated with traditional housing, buying a mobile home could be your ideal choice!

What is a mobile home?

A mobile home, or manufactured home, is a factory-built residential structure designed for transport. Unlike traditional site-built homes, mobile homes are constructed in a controlled factory environment and hauled to their final location. They are typically placed on a permanent foundation or supported by blocks or piers. There are primarily two types of manufactured homes:

Single-Wide: These homes are typically narrower and more compact, making them suitable for individuals or smaller families. Single-wide homes are often more affordable but offer less interior space.
Double-Wide (or Multi-Section): These homes offer more interior space, preferred by larger families due to their roomier layouts.

Where can you place a mobile home?

When considering where to place a manufactured home, you have two primary options: vacant land you own or acquire or manufactured home parks.

On vacant land:

Permits: Placing a manufactured home on vacant land requires permits and approvals from local authorities. These permits may include building permits, environmental impact assessments, and zoning compliance checks.
Utility hookups: Vacant land often lacks essential utilities like water, sewage, and electricity. You’ll need to arrange and cover the costs of utility hookups to make the land suitable for habitation. This process can impact (and increase) your overall expenses.
Site preparation: Preparing the land for your manufactured home may entail grading, clearing, and establishing a suitable foundation or support system. Some of these tasks may require professional assistance, affecting your project’s timeline and budget.

In a manufactured home park:

Convenience: Mobile home parks typically have existing utility hookups and infrastructure, simplifying the moving-in process. You won’t need to worry about obtaining permits, zoning compliance, or setting up utilities.
Community living: Mobile home parks often create a sense of community, allowing residents to interact with neighbors and access shared amenities such as recreational areas, maintenance services, and security features.
Monthly lot rent: In mobile home parks, residents pay a monthly lot rent or space fee to the park management. This fee covers the use of the land and shared facilities.

You can also relocate a mobile home to a new location if you decide to move. However, moving costs vary on distance, size, weight, chosen route, and necessary repairs. Short-distance moves may cost between $1,000 and $5,000, while longer journeys can exceed $15,000. On average, you can estimate expenses at $5 to $10 per mile.

What is the average cost of a mobile home compared to a traditional home?

The cost of a mobile home varies considerably and depends on several factors, including size, location, age, and features. As of 2022, new single-wide mobile homes had an average price of $88,000, while double-wide or multi-section homes averaged around $155,200. The average cost of a traditional site-built home in the United States in 2022 was approximately $348,079.

What are the advantages and disadvantages of buying a mobile home?

Advantages:

Affordability: These homes are more budget-friendly than traditional homes, making homeownership accessible to more people.
Energy efficiency: Modern designs prioritize energy efficiency, with improved insulation, energy-efficient appliances, and HVAC systems that can lower utility bills.
Flexibility: They can be relocated, although it’s not common. This mobility provides flexibility if you want to move without selling your home.
Community amenities: Mobile home parks often provide amenities like swimming pools, playgrounds, and communal spaces, fostering a sense of community among residents.
Lower maintenance: Smaller sizes and simplified designs often mean lower maintenance requirements compared to larger houses, which can save time and money.

Disadvantages:

Depreciation: These homes tend to depreciate over time, making them a less reliable investment compared to traditional homes, which often appreciate.
Location restrictions: Zoning regulations and restrictions can limit where you can place them and what modifications you can make.
Space constraints: They are generally smaller than traditional homes, which can lead to space constraints, especially for larger families or individuals who value ample living space.
Land ownership: In many cases, you don’t own the land where your mobile home is located, which can limit your control over your living space and may lead to rent increases.

Is buying a mobile home possible for immigrants or ITIN holders?

Yes, immigrants, including those with Individual Taxpayer Identification Numbers (ITINs), can purchase a mobile home in the United States. However, the specific documentation requirements may vary by lender and location. Generally, you will need:

Proof of identity such as a passport, driver’s license, or other government-issued identification.
Proof of income: Lenders typically require evidence of a stable source of income, such as pay stubs, tax returns, or employment verification.
Credit history: Some lenders may request a credit history or credit report. You can obtain a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year at AnnualCreditReport.com.
Down payment: You will need funds for a down payment, which varies based on the lender and your creditworthiness.

What types of financing are available for mobile home buyers?

Several financing options are available when buying a mobile home:

Personal loans: You can obtain a loan from a bank or credit union to finance your mobile home purchase. These loans typically have shorter terms and higher interest rates.
Chattel Mortgage: This loan operates like a car loan, where the mobile home acts as collateral. The lender maintains a vested interest in the mobile home until repayment.
FHA Loans: The Federal Housing Administration (FHA) offers loans specifically designed for mobile homes, known as Title I loans. These loans often have more flexible qualification requirements.
Conventional Loans: Some lenders offer these loans for mobile home purchases if they meet specific criteria, such as being permanently affixed to the land and meeting size and quality standards.
Seller Financing: Some sellers of mobile homes may offer owner financing, allowing you to make payments directly to the seller instead of obtaining a traditional loan. This option can be more flexible but requires agreement between the buyer and seller.

Affordable Home Buying Options for ITIN Holders in the US