A couple signing a document to purchase a mobile home in Merced, CA

Quick Guide to Buying Mobile Homes

Are you taking your first steps onto the property ladder and feeling daunted by skyrocketing real estate prices? You’re not alone. However, there’s a solution that’s both affordable and comfortable: mobile homes. 


As an aspiring first-time homebuyer, you may not have considered this option, but mobile homes are increasingly becoming an attractive choice for many. This blog post will delve into the world of mobile homes, exploring their financial advantages, diverse financing options, and potential tax responsibilities. 


Is buying a mobile home a good choice for a first-time buyer?

Due to rising real estate prices, especially in large cities, traditional houses may not be accessible to first-time home buyers. To give you an idea,the average monthly mortgage payment was 50% higher in 2022 compared to the previous year. 


Fortunately, mobile homes are a more affordable housing option for first-time homebuyers since they cost less than a stick-built house of the same size and construction material. 


How to finance a mobile home purchase?

Institutions like the Federal Housing Administration (FHA), the Department of Veteran Affairs (VA), Fannie Mae and Freddie Mac offer up to 30-year mortgage financing options for mobile homes. However, note that they usually require your unit to be at least 400 square feet, attached to a permanent foundation and classified as real estate, among other requirements. 


While most traditional banks don’t offer mortgage loans for mobile homes, you can still get a chattel loan or a personal loan to buy a manufactured home. But with these financing options, always proceed with caution because they generally have shorter repayment terms and higher interest rates and monthly payments. 


Some mobile home sellers may also offer in-house financing options. You can arrange this through a retail installment contract. 


Do you have to pay property tax if you live in a mobile home?

The short answer is yes; however, the tax you pay varies depending on several factors. For instance, if your mobile home is set up on a plot of land you own, you need to pay real estate tax for the land and the unit. But if it’s on leased land — such as a mobile home park — you only pay the personal property tax for the home. 


Remember that failure to pay the corresponding tax may result in foreclosure if your mobile home is considered real property.


Final word 

In conclusion, navigating the realm of first-time home buying can seem overwhelming, but mobile homes offer a viable and affordable solution. From accessible financing options to manageable taxes and an engaging community lifestyle, mobile homes present a unique blend of affordability and comfort. 


Remember, the key to making the most of your first-time home-buying experience lies in doing thorough research and making informed decisions. So, why not consider a mobile home? It could be your stepping stone into homeownership, providing a cozy place to call home without breaking the bank.


Located between the coast and Yosemite National Park, Sierra Portal Mobile Estates is a serene 55-and-better community in Merced, California. 


Offering a welcoming environment and easy access to amenities, this is your perfect home! Send us a message today!


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