A Quick Primer on Mobile Homes
What are Mobile Homes? The answer may surprise you. Unlike traditional houses, mobile homes are permanently set on a masonry foundation. They are therefore considered personal property. You can finance them as such over 10 to 15 years. But, how are they different from traditional homes? Here’s a quick primer on mobile homes. Read on to learn the pros and cons of these houses. And find out how to finance yours. Read on to learn more about mobile homes pros financing.
Modern mobile homes are permanently installed with a masonry foundation
While traditional mobile homes are not permanently installed on a masonry foundation, there are ways to install a permanent foundation for your manufactured home. A masonry foundation is a better choice for many reasons, including better structural stability and improved financing options. Moreover, a permanent foundation protects your mobile home from weather conditions and offers better protection against depreciation. Non-permanent foundations are also more difficult to obtain real estate loans.
The most common way to install a masonry foundation for a manufactured home is to use a double stack of regular concrete masonry blocks. These blocks measure 8″ x 16″ and are stacked 90 degrees apart. If the stack is taller than 5′, it must be mortared or dry-stacked. Once this is done, the cap board is installed, which is made from rough-sawn one-inch hardwood. The steel beam of the home will rest on the cap board. The home’s foundation is then leveled using hardwood shims.
They are not considered real estate
While you may think mobile homes are not real estate, they can be purchased as such. In many cases, you can own the land where the mobile home is located together with the land. In these cases, the mobile home is placed on a foundation, connected to utilities, and is permanently attached to the land. You will also receive a deed to the land, if the mobile home is not on a property that is part of a community.
As stated earlier, there are two distinct types of mobile homes. A manufactured home is a mobile structure, meaning that it is attached to land that is owned by the mobile homeowner. Mobile homes are often classified as real estate, as they must be attached to the land. Reclassifying a mobile home to a piece of real estate can benefit your finances and your ability to claim certain tax deductions. Dan Paton is a mobile home industry veteran, with more than a decade of experience. His primary role in EZ Homes is administrative.
They are financed as personal property over 10 to 15 years
A Chattel Loan is a type of personal property loan that is popular among manufactured home buyers. This type of loan is for the mobile home itself and is financed over 10 to 15 years. The buyer has the right to move the mobile home if necessary. This type of loan is typically higher in interest rate than a standard home loan. If the buyer does not move the mobile home within 10 years of purchase, the loan may be paid off with a higher interest rate.
In order to qualify for this type of loan, the mobile home must have at least 400 square feet of living space and sit on a foundation. A loan must also be available to purchase land on which to put the mobile home. The USDA also offers several financing options for this type of loan. Although not all manufactured homes qualify for these financing options, many government backed programs offer low rates and flexible terms.
They are affordable
Many professionals find mobile homes to be affordable. Mobile homes are less expensive than single family homes. In fact, manufactured homes are built in factories under strict regulations to ensure quality. They can be affordable for any professional and can also be an excellent investment. You can live in a beautiful, quality home for a fraction of the cost of a single family home. Depending on your budget and your desired style and size, manufactured housing may be the right choice for you.
Although mobile homes are more affordable than traditional homes, some of the features and amenities may be beyond your budget. Luxury features can be purchased separately from a mobile home, but installation can be expensive. If you have limited funds, consider hiring a factory to install luxury items. A mobile home may even be more stable if you remove the chassis. However, keep in mind that mobile homes do require a significant investment, so it is not a good choice for everyone.