Should I buy a Manufactured Home?

Question

i am looking for my first home, i currently live in central NC and housing costs are very high, i have found a few select manufactured homes(not moblie) that are close to my work and seem very nice... i am also trying to save some money ... is this a good investment ? what should i do? my mortage payment would be very small and i could save... but is a manufactured home a good thing? please help... real examples if possible... thanks

Answer 1

It really depends upon the setting of the manufactured home, if it is in a mobile home park the interest is higher but if the home is sitting on a lot that you own it is much easier, yet again if the home is permanently attached to a foundation it is the same a purchasing any other home.

I am not sure how things are in North Carolina but when I compare the cost of a home there and compare it to what they cost here, NC seems to be giving them away. Manufactured homes in mobile home parks in my area of California sell between $275,000 and $350,000. Houses start at $500,000 and go up, an average 3br 2ba 1300 sq ft home sells for around $750,000..

California is a bit different in that even mobile homes increase in value but no where near as fast as home prices, your area may be different but even if the manufactured home
does increase in your area, homes are likely to far out pace them so I would say you are better off purchasing a smaller home for you first one, stay in it for 3 or 4 years then sell and buy a bigger one.

Answer 2

No, they are not good investments. They tend to depreciate rather than appreciate. Of course, much depends on the quality of the product. If you get one which has framing components very similar to that of a conventional home, you're far better off.

Right now, many mortgage lenders are walking away from financing such structures entirely. Those that will look at them are requiring high downpayments. Why? Because that the lenders learned, during the recent foreclosure wave, they nearly had to give these things away to get them out of inventory.