Is now a good time to buy a manufactured home?

It's really up to the borroers but in my experience, I have seen that manufatured houses are less likely to have the resale value that stick built houses have.  I wouldn't buy one just to have a house.

For lenders for manufactured homes look at FHA first and foremost......  on purchases 97% LTV and 30 year fixed rates.  You cant beat it

I aggree with Ron, the resale value is terrible on MH's and you better have good credit and a lot of equity if you ever want to refi them. :)

There's never a good time to buy a manufactured home.  Their junk!!  Just go look at one that's 20 years old.  What you will see is an aluminum trailor that looks like it's falling apart.  They also are not safe in earthquakes, tornados, hurrincanes, or high winds.  Their plastic/aluminum garbage.  That's why most lenders won't even loan on them. 

Stacy,

I am not telling people not to buy one if they want one.  Buying one just to own a house is ridiculous though.  I don't care how strict they are, the reason they are strict though is because they are not marketable properties.  Lenders don't want to lend on them.  This has nothing to do with the dark ages.  They are not as well built as stick built homes nor as valuable.  Bottom Line.

Wow....

Stacy...   I have been in lending for 15 years....    I think your last comment is absolutely on the mark.  And I slightly agree with Ron's last comment.

Here is my input on this....  each area, region, and state is different. Where manufactured homes in one area might be junk, they might hold good value and actually look better than some homes. I just closed on one in PA and if I showed you the pictures, you would have never know the difference. It looked like it was stick built.

Now, I will also agree, that you, Stacy, can't make blanket statements such as this... "It is true that prices have dropped, but most manufactured homes across the country have appreciated  far ahead of where they were before the housing boom/bust."

To me, that is a blanket statement which needs to have proof back it up.  That is just how I act and treat everyone when making blanket statements. You live in California and possibly can't know my market in NJ and especially the upside market in Florida. Even if you talk to just one realtor in either of those markets, it is just their opinion.  I wrote this post a while back....

Do you give advice outside your area of expertise?

I thought I had another one, different than this one. It doesn't pertain 100% to what is being mentioned in this blog. But my point is, unless you physically deal with manufactured homes in each area, then you can't make bold statements like that. It's just like the media, when they say the housing market is in the tank. Bold/blanket statement.  North Carolina has an awesome market right now and have held it's values. But you can't say that their values will hold sold for 2 years. That's impossible.... you can only guess and make assumptions.

Stacy... I hope what I have said is not harsh....  but that is why some are chiming in here and are stern in their statements.  Because then you go on to say this... "Over the past several years most manufactured home owners have seen the value of their homesteads go up."    If this is true, show the links that you found this info in your blog.  But if it's not about every area out there, then you can't use the word, "area".  That is too vague. You said most.... and most to mean would mean the United States....  just my opinion. 

And then this statement that you made... "In some areas home values have grown as much as seventy five percent. So even with falling prices many of our manufactured home's values have jumped up faster than inflation."

Our manufactured homes?   Our?  California?  Your county?  The west coast?  The United States?  Again, beyond vague. Just my opinion.... but that is how many people would read this. When writing blogs, you need to be specific when talking about a specific item, program, or anything else relating to real estate.

Lastly, Stacy.. again, sorry if this sounded harsh. But I am advocate when it comes to reading stuff on the internet that gives opinions, but those opinions sounds like facts. Even if you didn't mean any of this to sound like fact... then each time you state your opinion in a blog, I would say... "this is my opinion" or "this is my .02"....   

 

Ron... to give you some good info about financing....  you can go up to the LTV of 97.75% on FHA loans, both purchases and rate/term refinances.....   here are the guides for FHA below... 

 

 

How can I determine if a manufactured home is eligible for FHA financing?

To determine basic eligibility for FHA mortgage insurance, all manufactured homes must comply with the following:

 

1.  Have a floor area of not less than 400 square feet;

2.  Be constructed after June 15, 1976, in conformance with the Federal manufactured home construction and safety standards, as evidenced by an affixed certification label in accordance with 24 CFR Section 3280.8; (manufactured homes produced prior to that date are ineligible for insured financing); 

3.  Be classified and subject to taxation as real estate;

4.  The mortgage must cover both the manufactured unit and its site and shall have a term of not more than 30 years from the date amortization begins;

5.  Be built and remain on a permanent chassis;

6.  Be designed to be used as a dwelling with a permanent foundation built to FHA criteria; and

7.  The finished grade elevation beneath the manufactured home or, if a basement is used, the lowest finished exterior grade adjacent to the perimeter enclosure, shall be at or above the 100-year return frequency flood elevation.

8.  The home must not have been installed or occupied previously at another site or location.

that's great, thanks Jeff. I really just didn't agree with the vagueness and the blanket statements. I can only speak from my experience and that's what I did. As I said to you before, to buy a manufactured house just to get into the market is going to hurt when the stick builts come down in value even more and become more affordable. It is my opinion that when this happens, people that own manufactured home will have a hard time selling them.

MOBILE AND / OR MANUFACTURED HOMES ARE DEFINITELY SUBJECT TO WHAT IS GOING ON IN THE HOUSING MARKET. BAY AREA HOUSING BECAME SO UNAFFORDABLE FOR MANY THAT MOBILE AND MANUFACTURED HOMES BECAME AND STILL IS A VIABLE OPTION.

THEY DO NOT APPRECIATE LIKE STICK HOMES. DEPENDING ON THE MARKET WILL DEPEND IF ONE TAKES A LOSS, BREAKS EVEN OR MAKES SOME BUCKS.

THERE HAVE BEEN SOME REAL CRAPPY MOBILE AND MANUFACTURED HOMES I HAVE WALKED INTO. THERE HAVE BEEN OTHERS THAT ARE WELL BUILT, REMODELED AND PUT TO SHAME SOME OF THE STICK HOMES I HAVE SEEN IN THE BAY AREA.

YOU HAVE TO UNDERSTAND IN THE BAY AREA WITH EARTH MOVEMENT WE SEE FOUNDATIONS CRACKED, FLOORS ELEVATING ON ONE SIDE ETC. IT WAS HARD SEEING PEOPLE SPEND $1000000 (MILLION) OR MORE ON THOSE HOMES AND THEN HAVE TO GO IN AND SPEND $150000 TO $400000 TO BRING UP TO SNUFF.

MOBILE AND /OR MANUFACTURED HOMES ARE GREAT FOR SOME AND NOT FOR OTHERS.

MANY SENIORS LOVE THE COMMUNITY AND THE SPACE. MANY YOUNG PEOPLE HAVE BEEN MIGRATING TO THEM. THERE ARE PROFESSIONAL, RETIRED AND YOUR EVERY DAY MANUAL LABORER WHO LOVE THEM.

AS LONG AS THOSE PURCHASING THEM UNDERSTAND THEY ARE NOT THE INVESTMENT OF A STICK HOME THEN IT IS PURELY A MATTER OF CHOICE IF BUYER DECIDES TO PURCHASE.

WE HAVE SEEN MOBILE HOMES HANDLE EARTHQUAKES BETTER THAN STICK HOMES. REALLY DEPENDS ON THE MANUFACTURER, HOW IT WAS SET UP

THERE IS THAT MENTALITY OF TRAILER PARKS AND TRASH AS SOON AS THEY ARE MENTIONED. THAT IS OFFENSIVE TO MANY WHO LIVE IN THE VARIOUS MOBILE HOME PARKS. THINGS HAVE CHANGED FOR MOST OF THEM. JUST AS THERE ARE TRASHY AREAS OF STICK BUILT HOMES THERE ARE SOME MOBILE HOME PARKS THAT WOULD BE CONSIDERED THE SAME.

I FIND IT INTERESTING THAT THOSE THAT SLAM MOBILE HOMES THINK NOTHING OF SPENDING $100-$200000 ON AN RV OR $60000 ON A MERCEDES........

IT REALLY IS A MATTER OF CHOICE... INSPECTIONS SHOULD BE DONE BY A COMPETENT INSPECTOR WHO KNOWS MOBILE AND/OR MANUFACTURED HOMES....

 

I'm way late for this one but it just popped up on my radar so here goes anyway. 

Don't listen to negative responses from so called professionals that have no idea what they are talking about. I've been in the RE and Constructions industry for 25 years as a RE Broker, General Contractor, Manufactured Home Dealer and developer. I have built site built properties, installed many manufactured homes and developed myriad hybrid site built/manufactured home combos. 

Manufactured home today are built as good as any site built home. Actually they are even built better. The materials are clean, dried and straight. They are built in a climate controlled indoor environment under very strict HUD controlled inspection requirements. Something you never see with site built construction. 

Here's some reference material for you to peruse when you have some time.

Please feel free to log onto our Truliahttp://www.trulia.com/blog/onthelevelcontractors/ or Active Rain bloghttp://activerain.com/blogs/johnarendsen for more comprehensive information about the MH Industry. 

Or you can check our our website and give us a call or drop us an email. We are RE Brokers, Manufactured Home Dealers and licensed, bonded and insured General Contractors and have been actively engaged in the MH Industry statewide for almost 3 decades. 

We love to Network with other MH Professionals.

Hi Stacy, if you're still active in Active Rain I'd like to invite you to join my group.

http://activerain.com/groups/manufacturedhomes