Buying a manufactured or mobile home is an exciting step toward affordable and customizable living. However, it’s different from purchasing a traditional home. To help you navigate the process, here are five key facts to know before making your purchase:

1. Understand the Difference Between Mobile and Manufactured Homes

Many people use the terms “mobile home” and “manufactured home” interchangeably, but they’re not exactly the same. Mobile homes refer to factory-built homes constructed before June 15, 1976, when the U.S. Department of Housing and Urban Development (HUD) implemented national safety standards. Manufactured homes are those built after this date and adhere to HUD’s stricter construction, design, and safety regulations. Understanding this distinction is crucial as it impacts financing options, resale value, and insurance coverage. It might be challenging to obtain a loan for a home built before June 15, 1976.

2. Location Matters: Land Ownership vs. Renting

Before purchasing, decide whether you want to place your home on land you own or in a mobile home park where you are required to pay a monthly “space rent” fee. In this case, the park is the owner of the land, as you only own the manufactured home. Owning land can increase the home’s long-term value and provide more control, but it’s a larger upfront investment. Renting a lot in a park may be more affordable initially, but you’ll have ongoing monthly fees and be subject to park rules.

3. Financing Options Are Unique

Financing for manufactured and mobile homes differs from traditional mortgages. If the home is not permanently affixed to land, it’s considered personal property and requires a chattel loan rather than a mortgage. These loans typically have higher interest rates and shorter repayment terms. If the home is permanently installed on a foundation and you own the land, you may qualify for conventional mortgage financing.

4. Inspections and Certifications Are Essential

Even though manufactured homes are built in a controlled environment, you should still invest in a professional inspection before purchasing. Ensure the home meets HUD standards, which include safety measures like proper electrical systems, fire safety, and structural integrity. For older homes, check for any necessary updates or repairs to meet modern standards.

5. Consider Long-Term Costs

While manufactured homes are often more affordable upfront, don’t overlook long-term expenses. These include maintenance, utility hookups, and potential upgrades. Additionally, if you’re renting a lot, factor in monthly fees, which can increase over time. Be sure to budget for these ongoing costs to avoid financial surprises.

Purchasing a manufactured or mobile home can be a fantastic way to achieve homeownership affordably and flexibly. By understanding these five key facts, you’ll be better equipped to make informed decisions that align with your lifestyle and financial goals. Take the time to research, ask questions, and consult professionals to ensure your purchase is a sound investment for the future.