MOBILE HOME

What is a manufactured/mobile home and how is it different from a modular home?

A manufactured home (also known as a mobile home) is a single or multi-sectional home built on a permanent frame, like a steel undercarriage/chassis, with a removable transportation system (hitch and wheels). The unit is may or may not be permanently attached to a site-built foundation and is subject to the 1976 federal standards established by the Department of Housing and Urban Development (HUD).

WARNING: IT CAN BE A ROYAL PAIN IN THE REAR TO FINANCE A MOBILE HOME

It is common to see interest rates on mobile home loans in the mid double digits!

Most mortgage lenders treat mobile homes similar to the way in which an automobile is financed. Lender's charge high rates in this market due to a high rate of default. In fact, some statistics state default rates as high as 12%!

Mobile homes tend to be poor collateral for many reasons:

They can be moved! If a home owner/borrower falls behind on payments nothing is there to stop them from pulling up and moving in the middle of the evening. Few have ever done this but bankers remain on guard!
Many mobile homes are placed on rented land. If the landlord decides to sell the land or up the rent; their is no guarantee the mobile home owner will be allowed or have the financial wherewithal to stay in the home.
Few buyers are able to put a significant amount of money down. This gives lenders little in the way of an equity cushion in the case of a default or unexpected hardship.
Mobile homes have an enormous number of quality control issues. While far more true of the distant past; the entire industry continues to be perceived as using inferior materials and workmanship. The stereotype of the worst place to be in a storm.....still holds true to many to this day.

Many other individuals and organizations have a distaste for mobile homes as they tend to lack the design character and individuality found in site build homes.

Tips on Purchasing a Mobile Home

DON'T