Mobile homes, also known as manufactured homes, can be an affordable housing option for some people. However, there are both pros and cons to consider before buying a mobile home. Compared to site-built homes, mobile homes typically have a much lower purchase price, making them one of the most affordable homeownership options. With less demand for land and simpler construction, mobile homes cost as little as half the price of site-built homes. Because they are factory-built, construction moves along faster. Once installed on-site, you can move into your new home in just a few weeks or months versus the year or longer timeline for site-built homes.
Advantages
Lower Upfront Cost
Compared to site-built homes, mobile homes typically have a much lower purchase price, making them one of the most affordable homeownership options. With less demand for land and simpler construction, mobile homes cost as little as half the price of site-built homes. Because the materials and construction are less complex, mobile homes simply cost much less to produce than homes built on-site piece by piece. This makes them one of the most budget-friendly paths to homeownership.
Shorter Construction Time
As mobile homes are factory-built, construction moves along faster. Once installed on-site, you can move into your new home in just a few weeks or months versus the year or longer for site-built homes. Because all sections of the home are built in a factory, the construction timeline is very fast and efficient. Parts can be cut, assembled, installed, and finished at a rapid pace. This accelerated timeline means you can start living in your affordable new home quickly.
Customizable Floor Plans
With a wide variety of models and layouts to choose from, it’s easier to find a mobile home floor plan suited to your lifestyle needs. Many manufacturers also offer some customization options. With literally hundreds of existing floor plans, mobile home buyers can likely find a layout close to their ideal. And if not, some level of customization is often possible, whether that’s choosing finishes, adjusting layouts, or adding special features. This flexibility helps buyers get the right floor plan for their budget and lifestyle.
Flexible Location
Mobile homes can be installed on owned or rented land, giving buyers flexible options based on budget and preferences. You can choose a mobile home park with amenities or a private plot of land. Because they don’t require a permanent foundation, mobile homes offer flexibility in terms of positioning. You can explore options for installing your home in a community park with amenities or situating it on a privately owned piece of land. This location flexibility gives you options to find the best fit based on your budget and needs.
Disadvantages
Lower Appreciation Rate
While mobile homes often cost much less upfront, they tend to appreciate in value at a slower rate than site-built homes. Factors like tenant-owned land and less durable construction contribute to lower appreciation over time. With less demand from buyers and the ability to quickly produce new inventory, mobile homes see slower gains in valuation. Additionally, owning a mobile home on rented land or with non-permanent foundations limits appreciation potential even further. So while the upfront affordability makes them attractive, mobile homes tend to gain value more slowly.
Risk of Damage in Transit
The transportation process brings some risk of damage to mobile homes. Parts of the home can shift or break despite secure strapping and weather protections. Thoroughly inspect the home upon delivery. Transporting a fully constructed home to a site introduces possibilities for damage along the way. Despite strapping sections securely and using weather protection coverings, the movement of the home and road conditions can cause shifting, cracks, or breakage. Make sure to carefully inspect for any damage when the home arrives before accepting delivery.
Shorter Lifespan
The average mobile home lasts around 30 years, sometimes less with poor maintenance, leaks, or weather damage. The less sturdy materials used make them less durable than site-built homes over the long term. Constructed from lighter materials like thin wood framing, vinyl siding, and lightweight roofing, mobile homes are not as sturdy and long-lasting as site-built homes. With inadequate maintenance, water or moisture leaks, and exposure to elements, a mobile home may degrade in condition in 20 years or less. The lifespan is about 30 years on average if properly maintained.
Higher Interest Rates
Mobile home loans often come with higher interest rates, origination fees, and credit score requirements than traditional mortgages. Less demand from lenders translates to worse rate offers. Because they are considered higher-risk due to faster depreciation and lower resale value potential, lenders charge more to finance mobile home purchases. Interest rates may be 1-3% higher for mobile mortgages. Loan origination fees cost more as well. Additionally, minimum credit scores tend to be 50-100 points higher for mobile home loans to qualify. So buyers will pay more in interest costs long-term.
