Buying a Manufactured House: Pros & Cons

If you are currently in the market for a new home, the choices can be overwhelming. Perhaps you have considered manufactured housing. What is a manufactured house? It is typically a home that is built completely in a factory (commonly known as a mobile home or trailer). When it is finished being built, it is moved to the site where it will be installed.

One of the biggest cons to buying this type of a house is that you can almost never get a traditional mortgage. Lenders do not like to finance these types of houses as they could be moved at any time. Also, it is hard to build equity in a manufactured home (for reference, equity is the property value minus the debt). Many owners of manufactured houses do not own the land their house is sitting on, and land is a big part of equity. Manufactured houses simply do not tend to go up in value. They are also geared towards lower income levels, and sometimes there are inferior building materials used. These are a few of the reasons why it is hard to get a traditional mortgage on a manufactured home.


The pros are that manufactured houses are very affordable, and provide people without a lot of income with a way to own their own home. Most people would prefer to own a home of their own, rather than paying rent to someone else. More and more people are buying manufactured homes and permanently installing them on land that they have purchased–because of this, sometimes they are able to qualify for a traditional mortgage.

If you are planning to consider a manufactured home, arrange for your own financing (do not necessarily go with the offer the seller of the home will try to talk you into). You will usually get a better deal arranging for financing yourself. Lots of financing tips are available on mortgage-refinancing-online-guide.com and other mortgage-related websites, so do your research. Also, avoid “all in one packages” that include everything (installation, financing, home-site, etc). You can get a more competitive price on your home by shopping for just the home. Try to find a good site to install your home on, before you buy the home. Also, consider buying rather than renting the site where your home will be placed.

Manufactured homes have both pros and cons, and are often a good housing solution. Just be sure you get all the facts and options before you sign any contracts.

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