Like a car that depreciates as soon as you drive it off the lot, a mobile, or manufactured, home loses value as soon as the keys are handed over at closing. It’s understandable why you might choose mobile-home living over buying a single-family home. Number one being: Manufactured home prices are a lot lower. The problem is that after years of paying a mortgage or handing over money for rent on the manufactured home, as well as paying park fees, which typically increase yearly, a person is left with nothing to show for it in the end. Even if you pay off the mortgage on a manufactured home, the equity you might have in it decreases every year you own it. And, the park fees never go away.
When considering your options for putting, and keeping, a roof over your head, it might be a good idea to look into purchasing a single-family home. In fact, there may never be a better time. Home prices are low and interest rates are the lowest they’ve been in 50 years. This means that many who weren’t able to buy during real estate’s boom period are able to buy now.
Homewise customers who have made the move from a mobile or manufactured home to purchasing a single-family dwelling site many advantages. One family who is currently paying $1300 a month in mortgage payments and park fees on their manufactured home ran the numbers with their Homewise Purchase Advisor and realized that a mortgage payment on a single-family home could be about the same amount. They are now working with their advisor to improve their credit and save money for a down-payment. Another couple extols the virtues of inviting friends and family to their single-family home for holidays, having plenty of room for the kids to play in the yard. Yet another Homewise customer talks about simple things, like being able to put her rug out in the sun to dry without getting turned in to the park board by the neighbors.
Whatever living situation is best for you and your family could depend on a number of things: Income, debt, and credit, as well as personal preference, could all be factors in deciding whether to rent, buy a single family, or buy a mobile or manufactured home. Ultimately, the choice is yours. Contact Homewise if you’d like to sit down with an advisor to determine what’s right for you.
Side note: Did you know that the difference between a mobile home and a manufactured home is the year it is was built? Mobile homes were built in 1978 or before, manufactured homes were built after 1978.