Which is better to buy a modular or a mobile home and why?
Manufactured Homes April 18th, 2010Which is better to buy a modular or a mobile home and why? We are moving and cannot live in the nicest part of town and we don’t want to live in an unsafe part of town. Are modulars or mobile homes the way to go?
April 18th, 2010 at 3:29 pm
I look at is this way; Is a Rolls Royce is better than a Yugo? Yes. Can I afford one? Nope. Therefore, I’ll always look to get the best bang for my buck according to my means. I keep my used Accord clean and I’m happy with that; at least until I can afford a Mercedez Benz
But anyway, back to your question: a modular home can be very similar in construction and quality to a site-built home. Sometimes pricing can be very similar as well, but modular homes are usually more affordable. And if you’re getting a brand-new one, you can move in much sooner because pieces are pre-assembled at the factory. Additionally, most lenders may be willing to finance modular homes just the same as site-built homes.
On the other hand, Manufactured homes, or mobile homes vary greatly in quality and comfort so I wouldn’t discount them right away – especially if they’re in your price range. Many people would be surprised at the quality and features of some Manufactured Homes.
You might not associate Marble windowsills, Transom windows, interior French doors, or Trey ceilings with a "Mobile Home," but that’s exactly what you could find of you know where to look. And not all Manufactured Home communities are as they appear on certain TV shows.
Don’t turn a blind eye to Manufactured Homes because of what you may have seen on an episode of Cops. Plenty of Manufactured Home communities are filled with decent, hard-working people who have no intention on starting a fight with their cousin on Jerry Springer.
If you’re in Central Florida, you can see some examples of Manufactured and Modular Homes here: http://www.BestBuyMobileHomes.com
Basically, if you know where to look, you can find great deals where others won’t even think of looking. So, a Mercedez Benz migh be better than my Accord, but I can get from A to B just as well. Always make the best with what you got.
Good Luck!
April 18th, 2010 at 3:29 pm
With tornado straps in place…they are essentially the same. However, morale degenteration quickly sets in when someone purchase a mobile…they end up on Jerry Springer and married to their third cousin…who happens to be a giraffe…stick with the modular…it is closer to being a real house…but not quite
April 18th, 2010 at 3:29 pm
Mobile homes (aka manufactured homes) don’t really appreciate in value and often depreciate over time, like a car. So you’ll have cheap payments but no equity at the end when you’re ready to move up to something nicer.
Modular homes are stick built homes built in a warehouse and assembled on the site. You have to buy the land AND the house so they often are not that much less expensive than traditional houses. Many neighborhoods will not allow them either because of their Homeowners Association rules.
I would try to find a bank owned home (foreclosure) in the nicest neighborhood you can afford. It will be much cheaper (most likely) than the rest in the area and you know the property will appreciate in the long run.
April 18th, 2010 at 3:29 pm
Neither is a good choice, but a modular will retain more value longer than a manufactured home. The problem is getting qualified for a home loan. Typically the appraiser can’t find suitable comps for a modular.
Good luck.
April 18th, 2010 at 3:29 pm
ok it is true some home owner assc. try to restrict modular homes. mobile home depreciate in value and are not a good idea.
modular homes on the other hand are wel buildt most are buildt with 2X6 construction just like most high end stick built homes buildt on site.
mosular homes are buildt better than an on site home dueto the fact they must travel down the road they alo are straighter and more square du to the manufacturing being done on a fal and square area.
what most people dont know is even stick buildt home that are construction on site are mostly buildt in sections walls are premande and numbered and assembled on site once the foaundation and flooring is in place. I worked in the construction of new homes for over 15 years.
i have seen both types of homes. if it is possible to put a modular home on your site go for it they tend to be i bit cheaper than a home buildton site.
also modula homes once a foundation is in place the home even one thats 3 stories high can be completed in 3 days and ready for you to move in . alot better than waiting 9 months for your home to be done
April 18th, 2010 at 3:29 pm
The modulars in our area are very nice and well built. I think it really depends on who makes it, plus they offer their own mortage programs including helping you find land.
If you didn’t know it was modular, I don’t think you would be able to tell.
April 18th, 2010 at 3:29 pm
Modular for sure!!!!
Most banks (including ours) don’t finance "manufactured" aka mobile homes. I personally haven’t financed them for about 3 years. Not sure who even finances them anymore.
Unlike a house or modular, a mobile home loses it value each year. Max mortgage terms are usually only 15 years as well.
Modular homes are really nice these days. Most banks give you the same terms and rates as a "normal" single family residence. The reason modular homes are cheaper is because they delivered in panels and assembled on-site. You can even obtain a construction loan to "build one". One of my clients is a log home builder. They send these "log homes" as kits out to the build site. And we’re talking really nice homes here, 500K+ not including the land. Just search google for "pre fab" or "modular homes". Some are very elaborate and you wouldn’t know the difference a modular and a "stick built" home.
April 18th, 2010 at 3:29 pm
Modular, NEVER mobile.
Mobile homes depreciate like a car.
PS: FHA has always financed mobile homes and still do. Foremost is one of the only insurance companies left in the USA that insures them.
April 18th, 2010 at 3:29 pm
Modular is better because it is built to the same code as a site built home. Manufactured homes are built to the HUD code. However, if you go to a manufactured home dealer, like Oakcreek or Palm Harbor, you are constantly told there isn’t much difference, which is aggravating. A modular typically cost about $10,000 more than their equivalent in a manufactured home. More preparation and site work goes into a modular home. You have to have a permanent foundation, to meet FHA standards, and a modular home inspector, a third party, comes out to inspect the installation. The foundation can cost anywhere from $5,000 – $10,000, with hardi-skirting. Utilities will be extra. I’m convinced this is why home centers belittle the difference in the two – their work is inspected. HUD home installations are not inspected. Also, while the modular home brochures reek of quality, it’s only as good as the installation. You do qualify for home equity loans at most bank with a modular. A manufactured home does not qualify for a home equity loan. All these are good points to consider a modular. In the end, a well-built manufactured home is good, a modular is much better, but a site-built is the best. No matter how well built a modular is, they can compromise the integrity with the installation and levelling.