From the Blog
Are Manufactured Homes a Good Investment in 2021?
A home isn’t just the place you live and the place you raise your family; a home is more than that. A home is an investment.
Because of their typical cost, a house is of course a financial investment. However, it is also an investment for your family. For many homeowners, the house they buy they want to call home for many, many years to come. They want to raise children there, see grandkids running through the halls, maybe even pass the home down to the next generation.
So, just as you do with every other investment you make in life, it is important to know that the home that you are considering is a good, safe investment.
Most people think the only two options for finding a new home are buying an existing home or building their own. However, there is another option that over the last few years has become a more and more attractive option for many homebuyers: manufactured homes.
You might be asking: “what is the difference between a mobile home vs a manufactured home?”. The answer is simple. According to HUD, a factory-built home prior to June 15, 1976 is a mobile home and one built after June 15, 1976 is a manufactured home.
Despite a variety of myths that exist about manufactured homes, more and more homebuyers have begun to see all the things this housing option has to offer.
So, are manufactured homes a good investment? Before we answer that question, let’s set the record straight on exactly what a manufactured home is.
What is a manufactured home?
Contrary to popular belief, manufactured homes and mobile homes are not the same things. This is one of the biggest misconceptions about manufactured homes out there. Mobile homes (or trailer homes) are built on wheels and are able to be hauled behind vehicles, and manufactured homes are permanent homes. Once they have been built and delivered, manufactured homes are secured to a permanent foundation.
Manufactured homes are homes built entirely in a factory under a federal building code administered by the U.S. Department of Housing and Urban Development (HUD). This means they are subject to all of the same safety requirements and regulations as site-built homes. Thanks to these regulations, you can rest assured that manufactured homes are of the same quality and security as traditional homes.
Are manufactured homes a smart investment?
The answer is a resounding yes, and in many ways, a manufactured home is actually a safer investment than a site-built or traditional home. Let us explain:
In the years that have passed since the 2008 financial crisis, the cause of which experts have identified as predatory private mortgage lending and unregulated housing markets, homebuyers have begun to realize the risk that comes with investing in a traditional home.
These homes have large down payments and regular monthly payments that usually require buyers to take out large, burdensome loans. This has caused a high demand for affordable housing options over the past decade.
Manufactured homes, on the other hand, are available at a much more affordable cost that doesn’t require buyers to take out these kinds of large loans. Manufactured homes also provide flexible and customizable housing options for homebuyers regardless of location, background, or circumstance.
So, the significantly smaller financial investment required to purchase a manufactured home than a traditional home makes it a more easily available home option. That reduced financial risk is just one of the reasons manufactured homes are a smart investment.
Manufactured home loans are easier to buy.
Not only are manufactured home loans significantly smaller than traditional home loans, but they are also typically easier to acquire. Prior to 2020, a fair credit score, minimum income documentation, and the minimum down payment amount were typical requirements for a traditional home loan. However, the fallout of the Coronavirus and the subsequent economic downturn has caused home mortgage lenders to set tighter and more strict conditions.
These restrictions can make it more difficult to secure financing for a traditional home. Fortunately, these same conditions have not been applied to dedicated manufactured home mortgage lenders. These lenders continue to follow similar, previous credit standards with different interest rates and repayment terms.
Many of these terms have also been specifically developed to meet the financial needs of potential borrowers with lower incomes, poor or bad credit, and lower down payment amounts. This is just another example of the security behind the investment of a manufactured home.
Get the most out of your investment.
One of the biggest considerations on a home investment is ensuring that you get your money’s worth, meaning not only is the home in good shape and high quality but that the home is built to last. Well, thanks to the HUD guidelines for manufactured home building, there should never be a single doubt or worry about the quality of your manufactured home. While the building process is significantly faster than a traditional home, there is no sacrificing safety or quality during construction.
Come home to Aspire Communities, we’re waiting for you.
Finding a new home is an investment, so it is important to know that the home you choose is a good one. So, are mobile homes a good investment? Thanks to their affordable price, the ease of securing financing, their high quality, and their built-to-last nature, mobile homes are a particularly great investment for first-time homeowners or those who are looking to downsize their estate.
Understanding the options available to you when buying a home can help make the home buying process much less stressful. Once your options have been outlined and your vision clear, you can simply focus on what is most important: finding the perfect home.
At Aspire Communities, our mission is to create beautiful homes that you and your family are proud to call home. Feel empowered to take control of your life in a home and community that supports you. Join the 2,000+ happy residents currently living in an Aspire community, and contact us today.