In this podcast, we're talking about everything you need to to know about manufactured home mortgages. Right now it’s a great time to talk about manufactured housing. We've seen a big increase in our buyers pursuing manufactured homes for a bunch of reasons. These include:
- Low home supply,
- The fierce competition between buyers shopping in the mid-300k price range,
- The increase in post-COVID remote employment statuses, and
- A lot of buyers are looking to make some lifestyle changes, wanting room for a garden, chickens, pigs or goats, things that most HOAs aren’t likely to be too keen on.
Benefits of Buying a Manufactured Home
Now, these aren’t your grandparents manufactured homes. Some of these will blow you away. You might even be hard pressed to even prove they’re manufactured homes.
There are some great benefits.
They may offer more square footage for less money.
They may be situated on larger sized lots (one acre +).
They will appreciate over time.
They can be purchased using conventional, FHA, or VA financing.
First up, typically they're going to offer more square footage for less money. In the East Valley, for example, you could get a site-built single family residence for, say, a median of around $450k. But if you went manufactured, you could get, at least, the same square footage for mid-$300k or lower. These can be a good investment, despite the stigma surrounding them. One just sold not too far from Chase Field for over $400k.
Drawbacks of Buying a Manufactured Home
But, of course, as there is with essentially any decision, there are some drawbacks.
They will not likely appreciate at the same rate as a traditional detached home.
If re-selling, the pool of buyers will be a smaller fraction of the larger market.
If refinancing for a cash-out, the guidelines are more strict.
The interest rates may be up to half a percent higher.
The mortgage insurance may be up to a quarter of a percent higher.
As always, we’re here to help
If you have any questions, please give us an email at team@azmortgageborthers.com or call us 602-535-2171. We’re always happy to help. Also, if you have a question you’d like us to answer here in our blog or on our podcast, send that along as well. Be sure to check out our other videos on our KZfaq Channel.