I hear it many times. " I think I am just going to buy some land and put a manufactured home on it."
People say it like it is as easy as hauling a shed home from Wal- Mart and putting it in your back yard when it is actually quite the opposite.
Financing a manufactured home is not as easy as it is for a conventional stick built home. First, you will be paying more interest since you are financing personal property and that property tends to depreciate unlike stick built homes. The life of a MFH is also shorter. Many people finance the land separately, or pay cash for it, then get a loan for the home. Also, when purchasing a MFH, you will need money down and a higher credit rating than what you would with a stick built home. Many times a buyer can close with no money down if buying a stick built home.
Many cities have zoning restrictions when it comes to manufactured homes and you could be looking at erecting yours outside of the city limits--This makes it highly important that you purchase the land before buying the home.
Another thing to consider is the expense of bringing utilities to the property if needed. Just because the land is in town does not mean it is set up for a home. It could cost you a hefty chunk of change if you have to bring the gas and water lines to your lot, hook up to sewer, or have a septic system put in. If you are putting in a septic system, don't forget to have the land perked!! Here in Lewiston and Clarkston, this is done through the health department. If public water is not available, a well will have to be drilled. Having the land perked and the locating water is done before the land closes and the deal is contingent of the outcome of these tests.
When all is said and done, you could have invested as much money into your abode as you would have if you bought a stick built home. An investment that will hold it's value and in most cases gain value as time passes.
With all of this said, if you are thinking of "Just going to buy some land and put a MFH on it", I hope this will help you decide. As you can probably tell, I am not a big fan of MFH's-the return is just not there, and it costs just as much if not more to purchase one.
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