If you're in the market to buy a new home, deciding which style of house you're interested in will help narrow your options. Two types of properties that have grown in popularity are manufactured and modular homes. While it's common for people to use these terms interchangeably, there are some key distinctions between manufactured and modular homes that you'll want to understand before you start shopping.
The term "manufactured home" is a bit of a rebrand.
These buildings were commonly referred to as mobile homes in the not-so-distant
past. Manufactured homes tend to be relatively affordable and come in several
styles, including single-wide, double-wide, and triple-wide varieties. Modular
homes are built in factories and carefully transported to properties on flatbed
trucks. These buildings are highly customizable and arrive as segments of rooms
that are then assembled on-site. They can have multiple stories and typically
take between eight and 14 weeks to build.
Now that we have the basic definitions down, let's explore a few
key differences to help you decide which option is right for you.
Financing: If you
plan to purchase a manufactured house, you may need to explore separate lending
categories that fall outside of traditional home loans. However, modular homes
fall under the same loan and refinancing criteria as homes built on-site.
Land Ownership: It's
common for manufactured home owners to lease the property they reside on from
mobile home parks or private owners. If you plan to purchase a modular home,
you will also need to purchase a piece of property to place it on and ensure
the construction meets the same building code regulations as a home built
on-site.
Depreciation vs. Appreciation:
Manufactured homes tend to lose value over time since it's difficult to make
substantial improvements, and transportation can be a resale challenge. On the
other hand, some reports indicate that manufactured homes are actually more
durable than traditionally built homes, which may increase their resale value.
If you're still on the fence, consult a local real estate agent
with first-hand knowledge of modular and manufactured homes. They can show you
different properties in person and help you weigh the pros and cons so you feel
confident in your decision.
Sources: nachi,org, claytonhomes
Team Lasson is here to assist with all of your home buying needs! If you’re considering taking the leap into home ownership in the near future, we’re here to help. Contact us today to explore which loan program aligns best with your financial goals.
The first step in preparing for your big purchase is to get
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call us at (573) 216-7258 to get started today!
Michael Lasson
Senior Mortgage Banker
NMLS #: 493712
Flat Branch Home Loans – Team Lasson
2882 Bagnell Dam Blvd
Lake Ozark, MO 65049
Cell: (573)
216-7258
Email: teamlasson@fbhl.com
Website: www.yourlakeloan.com
**The
postings on this site are my own and do not necessarily represent Flat Branch
Home Loans positions, strategies, or opinions.
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