Should you buy a single family or mobile home?

Buying a home is a big decision, and deciding what type of home can be an even bigger one. If you are trying to decide to what purchase considering the following…

Single family homes contain lower interest the lowest interest rates and provide the most amount of financing options. These types of properties are also more marketable because more people can get loans on them, making them more universal, subsequently, resulting in lower cost of funds.

Manufactured homes within a park are generally lower in purchase price. However, they also contain space rent space rent. Essentially you’re paying a monthly fee to the owner who owns the land and subsequently, can raise this monthly rental fee just like rent for say an apartment. This is considered to be chattel ownership or chattel ones which is sent which essentially is personal property. These properties generally require down about 20% usually and oftentimes carry substantially higher interest rates because of the inherent risk that the lender takes on. A mobile home could essentially be detached from the earth and moved, which poses a risk to the lender.

Which home type should you buy?

If your situation is such your present financial situation is temporary then a single family home may be a better play down the line. By temporary we mean you may be in any of the following situations down the line, more income, better credit score, less debt or more cash in the bank. If any of those things is within your plan, more traditional real estate is safer better long term bet.

If your situation is fixed, i.e. income is fixed and will not change, cash in the bank will not change and the situation is poised to remain unchanged, a mobile home may be a better bet.

If you can qualify for a single family home, condo, pud, multi-family, mixed use, modular, prefab or manufactured home on land your own, will likely do far better over time when compared against a mobile home with a variable space rent component.

Bottom line whichever home is within your means, and if waiting to buy a home is more suitable, then wait. No one is in a rush to buy a home these days. It takes careful planning, consideration, some time and great deal of patience, with a little luck sprinkled in.

Looking to better understand your home buying options? Get no- cost quote today!

 

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

Navigating FHA Loans for Multifamily Properties: What You Need to Know

Navigating FHA Loans for Multifamily Properties: What You Need to Know

One of the biggest challenges in securing an FHA mortgage for a multifamily property is…

How to Get Pre-Approved for a Mortgage Without a Hard Credit Check

How to Get Pre-Approved for a Mortgage Without a Hard Credit Check

How to Get Pre-Approved for a Mortgage Without a Hard Credit Check In the quest…

How Interest Rates Are Impacting Home Buyers and Sellers

How Interest Rates Are Impacting Home Buyers and Sellers

Interest rates are a critical component of the housing market, influencing the behaviour of both…

FHA vs. Conventional Loans—Which Costs Less in the Long Run?

FHA vs. Conventional Loans—Which Costs Less in the Long Run?

When securing a mortgage for your home, choosing between an FHA loan and a conventional…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!