Higher Interest Rates? A Manufactured Home on Land May Be the Smart Solution

When interest rates rise, buyers often focus only on the rate. But the interest rate is only one part of the equation. The purchase price—and ultimately the monthly payment—matters just as much.

That is one reason I believe manufactured homes on land deserve another serious look in today’s real estate market.

Manufactured Does Not Mean Poorly Built

There are still plenty of misconceptions about manufactured homes. Modern manufactured homes can offer attractive floor plans, energy-efficient features, spacious kitchens, large primary bedrooms, and many of the same comforts buyers expect in site-built homes.

Most importantly, a manufactured home on its own land can provide an opportunity to own both the home and the real estate underneath it.

That is very different from purchasing a manufactured home in a park where you may also have a monthly space rent.

Higher Rates Make Purchase Price Even More Important

When mortgage rates are higher, every dollar of purchase price becomes more important to the monthly payment.

A buyer who has been looking exclusively at site-built homes may discover that a manufactured home on land provides the space and features they need at a more manageable purchase price.

My philosophy has always been: shop the payment, not just the interest rate.

Start with the monthly housing payment you are comfortable with. Then we can look at the different types of properties that may fit within that number.

Financing May Be Available

One of the biggest misconceptions I hear is that manufactured homes cannot be financed with traditional mortgage programs.

Depending on the property, its age, foundation, title status, condition and other requirements, manufactured homes may qualify for financing that includes Conventional, FHA, VA and USDA loans.

This is where experience becomes especially important. Manufactured-home transactions can involve issues that you don't normally encounter with a site-built property, including permanent foundations, engineering certifications, HUD labels and data plates, title or affidavit-of-affixture questions, additions, wells and septic systems.

You want to identify these issues before they become a problem late in the transaction.

I've Done 100 Manufactured-Home Sales

This isn't an area of real estate that I have simply studied.

I've completed approximately 100 manufactured-home transactions.

I've worked through many of the issues that can come with buying and selling manufactured homes on land. That experience can be extremely valuable when determining whether a particular property is a good candidate for your situation and financing.

Manufactured homes aren't the answer for every buyer. But they shouldn't automatically be dismissed either.

In a market where affordability and monthly payments matter more than ever, a well-maintained manufactured home on its own land may be exactly the alternative some buyers have been overlooking.

If you are considering buying or selling a manufactured home on land in Southern Arizona, give me a call. Let's look at the property, the numbers and your options.

Wes Stolsek

OMNI Homes International

520-404-9773

www.wesleystolsek.com