How Much Does a New Mobile Home Cost in United States?(2)

The nationwide average cost for a new manufactured home

Data courtesy of U.S. Census Bureau data.
Single wide: $81,400
Double wide: $160,400
Triple wide/multi wide: Up to $250,000

Benefits of buying a new manufactured home

It isn’t just their lower price tag that makes manufactured homes an intriguing investment for buyers. A new manufactured home has many other important qualities that may make someone want to consider a purchase:
 The taxes are lower. Property taxes are not as high as on a site-built home. That’s because manufactured homes are classified as personal property, whereas site-built homes are real estate property — a higher taxed designation.
 They’re safer than ever before. The introduction of HUD codes on mobile homes in the late 1970s meant that there have been fewer mobile home fires than there were previously and more protection from natural disasters. According to MHI, in hurricane zones, the standards for manufactured homes are even more stringent than regional and national building codes for site-built homes.
 They’re quick to build. Since they’re built in factories, there’s an inherent efficiency to the way they’re designed and put together. They’re also not going to be delayed by bad weather.
 They’re customizable. A new manufactured home offers buyers the chance to customize their living space without the high price tag normally associated with new construction.

Financing your manufactured home

According to HUD, the most common method of financing a manufactured home is through a retail installment contract, available through your retailer. Some lending institutions that offer conventional, long-term real estate mortgages may require the homes to be placed on approved foundations. Manufactured homes could also be eligible for government-insured loans offered by the Federal Housing Administration (FHA), the Veterans Administration (VA), and the Rural Housing Services (RHS) under the U.S. Department of Agriculture.

FHA loans

Support may be available for your manufactured home purchase through the Federal Housing Administration. With an FHA loan, you still have to secure outside financing, but you’re considered less risky since the government promises to cover your debt if you can’t. It isn’t necessarily easy to get an FHA loan; however, there are certain requirements you will need to meet first, including owning the land that your manufactured home is going to sit on.

USDA loans

If your manufactured home will have a permanent foundation and you’re financing both the home and the land it will sit on, then you may qualify for the Rural Housing Services (RHS) loan under the U.S. Department of Agriculture, also referred to as the USDA loan. There are some other pretty strict regulations for eligibility. Read the fine print carefully before sending in your application.

VA loans

If you are a former member of the military, consider applying for a VA loan for your manufactured home, which operates much the same as an FHA loan but is specifically for veterans. With a VA loan, you can finance up to 95% of the purchase value for your manufactured home and the land it will be on.

Chattel loans

Chattel loans are the most popular financing option for manufactured homes and are the easiest to get. However, they carry high-interest rates and aren’t ideal if you can avoid them. You’ll need to get a chattel loan for financing if you’re planning to rent the land under your home sits on.
A manufactured home can be an affordable housing investment with the right financing. Consider all of the inherent costs when deciding, including location, size, and whether you want to rent or purchase the land.

Considerations before you buy a mobile or manufactured home

Purchasing a mobile or manufactured home differs from buying a site-built home. The type of ownership is different too. A manufactured home is considered private property as opposed to the real estate classification of the traditionally built home. You will have a title, but not the deed.
You can’t get a traditional mortgage. You can get financing, however, as described above, like conventional loans and loans through several government agencies.
Value depreciation vs. increase in value. Real estate is likely to increase in value over time, but manufactured homes typically depreciate in value like a lot of private property (think a car). This is good news if you’re shopping for an inexpensive used manufactured home as you can get a good deal. And, if you already own one, as long as you maintain it well, it’s not likely to lose a lot of value. The smaller footprint can also mean less maintenance cost.
Home inspection is much simpler. While inspecting a traditionally built home can take several steps, dozens of hours, a lot of paperwork, and the involvement of several inspectors, you can expect a much more simplified inspection. Typically, they’re inspected for any issues with the roof, the plumbing, the heat, and the electricity.