Buying a Mobile Home: Costs, Financing, and What to Expect

Key takeaways:

• Buying a mobile home is an affordable path to homeownership for many. 
• Most mobile homes don’t qualify for traditional mortgages, but other financing options like chattel loans or personal loans are available.
• Carefully consider the pros, cons, and additional costs before deciding whether a mobile home is right for you. 

Buying a mobile home is an affordable and flexible housing option, but it comes with unique considerations. From choosing the right type of mobile home to deciding between a community or private land, and figuring out the financing, there’s a lot to think about. Whether you’re moving from an apartment in New Orleans, a rental home in Portland, or exploring alternatives to traditional homes in Denver, we’re here to guide you through every step. 

What is a mobile home?

Not to be confused with an RV, a mobile home is a manufactured home that is built in a factory and transported to a permanent site. These homes come in many different styles and sizes, and can be placed in mobile home parks or on private land. They’re grouped into three types based on how many sections they’re built in:

What to consider before buying a mobile home

There are a number of incentives to buying a mobile home that make it an attractive option for some. However, just as with any major decision in the home buying process, it’s important to consider the potential drawbacks. Weigh the pros, cons, and additional expenses to decide whether a manufactured home is the right choice for you: 

Pros:

• Affordability: Mobile homes are cheaper than buying a traditional single-family home. 
• Flexibility on location: You can choose a specific mobile home community or place a mobile home on privately owned land. There are a number of options we will dive into. 
• Quick construction: Being built in factories, manufactured homes take less time to build than traditional homes. 
• Customization: You can have a mobile home built to your specific needs and customize the amenities and features within. 

Cons:

• Depreciation: Mobile homes tend to depreciate rather than appreciate in value, unless they are permanently affixed to land. 
• Difficult to secure a home loan: These homes are often categorized as personal property rather than residences, meaning traditional home loans are difficult to secure. 
• Leased land: If you don’t own the land the mobile home is placed on, you may need to pay a land lease fee to the owner. 
• Resale difficulties: Selling a mobile home can be more challenging than selling a traditional home.

Additional expenses:

• Delivery and installation: Some mobile homes include delivery and setup in the overall cost, but not always. Depending on the size of the unit, full-service moves can cost between $2,000 and $14,000 or more. 
• Utilities: Cost of utility hookup varies widely depending on where you decide to place a mobile home. Purchased land with no established systems can add several thousands to your mobile home cost to install necessary utilities. 
• Skirting and anchoring: Meant to keep your mobile home stable and protected from the elements, most communities and building codes require the addition of skirting and anchors to mobile homes. This can be included in your delivery and installation package, but will cost extra if not. 
• Maintenance: Like any home, a mobile home requires regular maintenance. Features like septic systems, crawl spaces or underbellies, and mobile home skirting and anchoring need regular checkups and maintenance, often by a professional. 
• Community fees: Mobile home communities typically require fees similar to HOA dues to contribute to community upkeep. 
• Appliances: Unlike traditional homes, many mobile homes do not come with appliances pre-installed. You may need to add the cost of a new fridge or dishwasher to your upfront costs. 

How to buy a mobile home

Once you’ve decided whether buying a mobile home is a good option to pursue, use these steps and tips to help you through the process:

1. Set a budge

Determine how much you can afford before getting too far in the process to adequately balance your needs with your wants. Buying a mobile home is a great way to save on mortgage costs and down payments, but don’t forget to account for the costs of land leases or purchases, community fees, and installations. 

2. Decide between new and used

This decision will ultimately determine your path through the mobile home buying process. Buying new gives you more options for placement and customization, but can be more expensive than used homes that are already established in mobile home communities. 

3. Search for a home

If you’re buying a new mobile home, look for local reputable sellers with good reviews. Be sure to check for HUD compliance in new manufactured homes. 

For used mobile homes, use Redfin’s home search. You can filter by price, rooms, home type, and more to find the perfect mobile home for you in your area. 

4. Pick a location

While this mostly applies to the purchase of new manufactured homes, mobile homes are just that: mobile. Moving a house requires extra permits and insurance among other things, but it is possible.

Mobile homes can be placed in mobile home parks, private land, or leased private land. Mobile home parks typically charge a fee, but offer a sense of community as well as shared amenities like pools or clubhouses. There are a number of different types of communities to choose from: 

• Age-restricted communities: Designed for residents aged 55 and older, offering a quieter environment with age-specific amenities.
• All-age communities: Open to individuals of all ages, often with amenities like playgrounds and pools.
• Resident-owned communities: Homeowners collectively own the land and share maintenance responsibilities, reducing lot rent expenses.
• Land-lease communities: Residents own their mobile homes but lease the land, paying monthly lot rent to a private owner or management company.
• Luxury mobile home parks: Offer high-end amenities such as clubhouses, fitness centers, and gated security.
• RV and mobile home mixed communities: Allow both mobile homes and RVs, providing flexibility in housing options.

Placing a mobile home on private land rather than a community offers the most freedom, but you’ll need to factor in zoning regulations and utility setup. 

5. Secure financing

Financing a mobile home differs from a traditional mortgage, as many are classified as personal property rather than real estate. Depending on whether your home is on leased land or permanently affixed to a foundation, you may need to explore options like chattel loans, FHA loans, or traditional mortgages to find the best fit for your budget. We’ll dive deeper into these options below. 

6. Get an inspection

As with any home purchase, getting a professional inspection is essential before committing to a home. Even newly manufactured mobile homes should be inspected to ensure HUD compliance, proper installation, and safety. You may want to consider additional inspections for used mobile homes, like septic inspections, to ensure there are no major issues with the current systems. 

7. Finalize the purchase

The closing process will look different depending on your financing options, but no matter what you choose, review all the documents carefully. A real estate attorney can be a helpful resource to navigate the closing documents for a mobile home—or any home.

Financing options

Some traditional mortgages are available for mobile homes that are permanently affixed to the land. FHA and VA loans can also apply to mobile homes that meet specific requirements. However, mobile homes often require unique financing options due to their classification as property rather than real estate. 

If you have good credit, a personal loan from your bank may be an option. . 

Another common choice is a chattel loan, which is designed for mobile homes on leased land. These loans come with shorter terms, lower fees, and smaller loan amounts than traditional mortgages—but they often carry higher interest rates, meaning higher monthly payments but a faster payoff.

Here is a quick comparison between the most common options for financing a mobile home: 

Is buying a mobile home worth it? 

If you’re looking for a more affordable way to own a home, buying a mobile home might be the right option. Consider the additional costs and potential depreciation in value carefully. While it may not be the best choice for a re-sellable investment, the upfront savings, community options, and customizability can make for a worthwhile homeownership experience. 

FAQs about mobile homes

Can I get a mortgage for a mobile home? 

If the mobile home is permanently affixed to land, you may qualify for a traditional mortgage. Otherwise, financing options like chattel loans or personal loans are available.

Do mobile homes appreciate in value?

Mobile homes typically depreciate in value over time, unlike traditional homes. However, if they are placed on owned land and well-maintained, they may retain or increase in value.

Can I move my mobile home after purchasing it?

Yes, but moving a mobile home can be expensive and requires permits. Additionally, some older models may not meet transport regulations.

Is home insurance required for a mobile home? 

Mobile home insurance is not mandated by law, but may be required by some mobile home communities and lenders, especially if you qualify for a mortgage. However, even if not required, insuring your mobile home is highly recommended to protect you and your belongings financially from theft, damage, or vandalism. 

How long do mobile homes last?

With proper maintenance, a mobile home can last 30-50 years or more. The lifespan depends on build quality, upkeep, and environmental conditions.

Is there a difference between mobile homes, mod homes, and manufactured homes?

Mobile, mod, and manufactured homes are all types of homes built in factories, but they have different construction standards, foundation requirements, and transportation methods. Mobile and manufactured homes both follow HUD guidelines, while modular homes are built to local codes and placed on permanent foundations. 

Is there a difference between a mobile home and a trailer?

Yes, there is a difference. A mobile home, also known as a manufactured home, is built in a factory and adheres to federal HUD standards. A trailer, often used interchangeably with RVs, is a smaller, movable dwelling designed for temporary use rather than permanent living.

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