Buying a mobile home is similar to buying a house in some ways, with a few important distinctions. Do you acquire a mobile home and land parcels together, for example? Or will you just buy a trailer and set it up on your own or leased land? These characteristics are crucial to examine because they can affect your lending alternatives. Here’s everything you need to know about buying a mobile home before you get started.
Also, Read: Steps on How to Move in A Mobile Home
You’ll likely come across some vocabulary terms related to mobile homes when you begin your search for a new house. The following are the most crucial:
A single wide is the smallest form of a mobile home, measuring 15 feet wide by 72 feet long on average.
A double-wide mobile home is a huge mobile house that measures approximately 26 feet by 56 feet.
The term “original set” refers to a mobile home that has not been moved from its original place. Original established mobile homes are usually the only ones eligible for government-backed financing.
A manufactured home is a terminology that is frequently used to refer to a mobile home. A factory-built home erected after June 15, 1976, is technically referred to as a “manufactured home.” Manufactured homes are built on a solid foundation. Mobile homes are residences that were built in a factory before June 15, 1976, and are not usually permanently attached.
Also, Read: What Is the Cost of Moving a Mobile Home?
The manner you finance a mobile home determines whether or not you can buy one. A manufactured or mobile home can be financed in two ways. The first option is to use a mortgage to fund the purchase. The second option is to use a personal property loan to buy a mobile home.
The mobile house will need to be permanently fixed to a foundation in order to qualify for most mortgages. Some government-backed loans will stipulate that the mobile homes must be an original set, which means they have never been moved from their original base. Most mortgages require that you either own the land or acquire it at the same period.
A “chattel option,” which is a form of personal property loan, is the other choice. This is utilized to buy mobile homes that aren’t permanently attached to the ground and hence aren’t considered real estate. When compared to a traditional mortgage, the advantage of a chattel loan is that you can move the property wherever you choose without violating the conditions of the arrangement.
What is the definition of a mobile home? It’s worth repeating that the US Department of Housing and Urban Development classifies factory-made homes built after June 15, 1976, as prefabricated homes. Before that period, factory-built dwellings were referred to as mobile homes. The disparity is due to the fact that manufactured homes are subject to stricter safety rules. As a result, you won’t be able to secure a real estate mortgage for a mobile home erected before the deadline, therefore you’ll have to rely on a chattel mortgage.
Mobile houses are available in a range of floor plans. The size of a mobile home determines its classification. The most popular type is a single-wide mobile home, which normally ranges in size from 600 to 1,330 square feet. A single wide has a width of 14 to 18 feet and a length of 66 to 80 feet. Typically, it will have one to two bedrooms. A double wide is made up of two single wides that have been put together to make a larger house. When securing a loan, each part is considered a unit, or floor, and must be reviewed independently by HUD. The term “triple-wide” refers to a mobile home with three or more units.
Lastly, you must examine the sort of land on which your mobile home will be placed. You can, of course, build one on land you already own or purchase a parcel of ground with a mobile home already on it. How do you go about purchasing a mobile home in a park? Because utility hookups are provided, mobile home parks are convenient. Some mobile home communities allow you to own your home but lease the land. You may own both the home and the property in other areas, but you’ll almost certainly have to pay maintenance fees as part of an HOA.
A manufactured home insurance policy is required to safeguard the home and its contents, just as it is for a traditional home. The lender will most probably want mobile home insurance if you apply for a loan. Residents in most towns are also required to get insurance. The good news is that many insurance companies provide coverage for mobile homes, so you may shop around for the best deal.
There are things you must do to prepare the land whether you’re installing a mobile home on a vast rural lot you own or on an undeveloped site in mobile home development. Some communities will prepare the site for you, while others will leave it up to you to hire people to complete the necessary site work. In either case, you’ll need to budget for pre-delivery charges like soil compaction, slope, and foundation laying.
There’s still a lot of work to be done after your mobile home is delivered. To begin, you should conduct a last walk-through of the mobile home to ensure that everything is in working order. Installation can commence if there are no problems.
Last but not least
Acquiring a mobile home can be a more cost-effective option than purchasing a standard home. However, there are significant distinctions in the procedure, especially in terms of financing, insurance, and site selection. You may proceed with confidence now that you know the basics of how to acquire a trailer house.