How to Buy a Mobile Home & Love It Forever

In today’s competitive housing market, finding an affordable place to call home can feel like an uphill battle. With soaring prices and limited inventory, many people are exploring alternative paths to homeownership, including mobile homes. If you want to know how to buy a mobile home or manufactured home, you’re not alone — 11% of new home purchases in 2023 were mobile homes, and there are over 8 million manufactured homes currently in use in the United States today. 

But buying a mobile home is not as simple as meets the eye — nor is it exactly an affordable panacea that will allow you to sidestep the troubled housing market. As with any home-buying decision, there are pros and cons to considering when buying a mobile home.

The appeal of mobile homes has grown as traditional housing becomes less accessible. Mobile homes can be an affordable entry point into homeownership without sacrificing the comforts of having your own space. Newer-model mobile homes feature all the modern perks of stick-built homes with a much lower price tag.

Plus, the flexibility to choose where you live — whether that’s in a bustling city or a quiet rural area — adds to their appeal.

“Mobile homes offer affordability, flexibility, and a faster buying process,” says Chad Breeden, owner and founder of Sentry Real Estate in Richmond, Texas. For many, it’s a practical solution that fits both their budget and lifestyle.

First, you’ll need to decide between a new or pre-owned mobile home. New homes come with the latest features and fewer immediate maintenance needs, but tend to be pricier. Pre-owned homes are more budget-friendly, but might require some upkeep or remodeling.

“When choosing between new and pre-owned mobile homes, buyers should consider the maintenance history, warranties, and depreciation rates,” advises Breeden. He points out that while newer homes might have higher upfront costs, they often come with warranties and modern amenities that can save you money (and headaches) in the long run.

Buying a mobile home isn’t exactly like purchasing a traditional house. Like a stick-built home, the process typically starts with finding the right home and securing financing; then you’ll need to choose a location or mobile home park and finalize your paperwork. One key difference is that you’ll often have separate agreements for the home itself and the land or park where it will reside.

You will also need to make sure your home is on a permanent foundation if you choose to skip the mobile home park and buy your own lot.

“Many lenders require the mobile home to be permanently attached to land or located in a registered mobile home park to qualify for a loan,” notes Breeden. This means you’ll need to think about where your home will sit as part of your purchasing plan.

Financing can be a bit different for mobile homes — traditional mortgages, like a 30-year fixed loan, might not always be an option, especially if you’re not buying the land. “Mobile home financing typically involves chattel loans or personal property loans, which are different from traditional mortgages because they may have shorter terms and higher interest rates,” says Breeden.

These loans are specifically designed for movable property, so your terms will reflect that. They present a higher risk for lenders than guaranteeing a loan on a house that will still be in the same place in 30 years, so expect higher interest rates over a shorter term — more like a car loan than a mortgage. Shop around and do your own research so you understand the specifics of any loan you’re considering, including interest rates and repayment terms.

But that movability is one of the main draws of owning a mobile home. You have the freedom to put your home pretty much anywhere you want once you secure financing for a lot, or you can opt for a mobile home park if you want a neighborhood vibe. Each option has its pros and cons.

 “Owning land will give you more control and potential appreciation, but renting a lot can offer flexibility with lower upfront costs,” Breeden explained. Buying land involves a larger initial investment and more responsibility for maintenance, plus the need to pay yearly property taxes.

Renting a lot in a mobile home park is often more affordable upfront and comes with added amenities like community spaces or maintenance services. But be aware of potential downsides. 

“Renters may face rising lot fees and less control over the land, making it important to understand long-term rent stability before signing,” warns Breeden.

If you’re moving a mobile home to a new location, there are logistical and financial considerations. “Moving a mobile home requires permits, transportation, and setup fees, which can be substantial and should be budgeted for upfront,” says Breeden.

These costs can include transportation, utility hookups, and site preparation, which can add up to several thousand dollars that should be factored into your overall budget to avoid surprises later.

While mobile homes offer plenty of benefits, they’re not without drawbacks. One significant consideration is depreciation. “Mobile homes tend not to appreciate because they are considered personal property, like vehicles, and are subject to wear and tear,” Breeden points out.

Other potential downsides include the following:

It’s important to weigh these factors against your personal goals and financial situation.

Despite the caveats, mobile homes really do have a lot going for them. Affordability is a big draw. 

“Compared to traditional homes, mobile homes are generally more affordable to buy and maintain, with fewer upfront costs and lower property taxes,” says Breeden.

Other perks include the following:

Owning a mobile home means planning for the future to maintain its value and your quality of life. “Mobile homes require regular maintenance of the structure and systems, and insurance can be higher due to storm damage risks,” Breeden advises. Staying on top of repairs and upkeep is crucial.

If you plan to sell your mobile home down the line, keep in mind that the resale market is different from traditional real estate. “Mobile homes have a smaller resale market and tend to sell for less, but location and condition can influence demand,” says Breeden.

To maximize resale value, make sure to do the following:

Buying a mobile home is a big decision that comes with its own set of considerations. With careful planning and a clear understanding of what to expect, a mobile home can provide an affordable and flexible path to homeownership, but might not be for everyone.

By approaching the process with open eyes and good information, you can make the choice that’s right for you.