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How Much Home Can You Afford?

How Much Home Can You Afford??

Manufactured homes are often sold separately from the land on which they will be placed.  When calculating how much home you can afford, you need to factor in the cost of the land or land rental.

If you purchase land be sure to include costs to prepare it for your home: clearance and grade work, a well or septic system, electrical and water connections, driveways, porches, landscaping, and more.

If you place the home in a park, these costs may be bundled into “park packages,” which pay for improvements such as driveways and carports for lots owned by the landlord.  Don’t forget to factor in likely rent increases when budgeting this option.

Charges to transport the home from the factory and install it at its final destination may be included in the price of the home.  If you buy a used homes sold in place, you will not incur these costs.

New mobile-home owners also shoulder long term costs that need to be factored into your budget:  insurance, utilities, taxes, maintenance and repairs.  Despite warranties, surveys show new mobile-home owners can have significant out-of-pocket repair costs in the first years of ownership.

Compare the total cost of a manufactured home (not just the purchase price) to the cost of condos, houses, and apartments in your area.  Knowing all your options will also help you to negotiate the final price if you decide to buy a manufactured home.

If this is your first home, consider homeownership counseling.  A mobile home is no less a commitment than a conventional home, and a counselor can help you prepare for the purchase process and the responsibilities of homeownership.

Taken From ~ Manufactured Home Buying Guide Brochere

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Buying a Mobile Home vs Renting an Apartment

Buying a Mobile Home Vs. Renting an Apartment

by Dennis Hartman, Demand Media

Renting an apartment removes the chance to build up equity.


The cost of buying a mobile home or renting an apartment can vary greatly depending on several factors. Things like location, size, recent renovations, number of bedrooms and the state of the housing market can all affect the monthly rent or mortgage payment. In addition, a mobile home owner's loan payments may vary based on credit risk and employment status. Mobile homes do carry the added cost of repairs and maintenance, but month-to-month neither option necessarily represents a significant savings.


Apartments and mobile homes share much in common as living spaces. Both usually include one or more bedrooms along with a separate living area and a kitchen. Bathrooms, closet storage space and a private entrance are also common features, though many apartments have a common entrance. Mobile homes may be located on a stand-alone property or within a mobile home community with similar buildings.


One of the major advantages of mobile home ownership is the chance to build equity. While renters pay rent each month with no return (other than a place to live), mobile home owners make mortgage payments and build equity, which they can borrow against in the future. In addition, a mobile home owner can sell her property in order to fund a move or to capitalize on a rise in the market value, while renters stand to gain very little to nothing if housing prices increase.


Mobile homes are usually located in suburban or semi-rural areas. Most mobile home parks are well outside of major cities and supply affordable housing that, in major urban centers, is supplied by low-cost apartment housing instead. Apartments give tenants access to the amenities of cities, including cultural activities and services like a public library system and a parks system. Mobile homes are less likely to be within a short distance of these features, but they offer a more-secluded and quiet atmosphere.


Another major difference between buying a mobile home and renting an apartment is the degree of control over the space. A rental agreement may not allow tenants to paint walls, install new fixtures or make other improvements. On the other hand, a mobile home owner has complete control over making improvements and decorating the home to express a personal style. While a mobile home owner's improvements might increase the value of the home, a renter's alterations might result in the landlord withholding a portion of the tenant's security deposit.


Financing Answers (2)


What kind of financing is available for my manufactured home?

HUD's FHA program insures two types of mortgages. Title II insures mortgages on qualifying manufactured homes sold with land and meeting other requirements. FHA's Title I program can provide information to consumers interested in obtaining HUD-insured loans. You may also want to contact lending institutions in your area (or the area where you want to purchase your home) for additional financing options.

What if HUD does not consider my home to meet its requirements for Title I or Title II insured loans? Are there still financing options available to me?

You may wish to consult with private lending institutions such as Freddie Mac or Fannie Mae to see if financial assistance is available to you.





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