We create some of the best life memories at home with our families and loved ones. A home is also where you recharge after a long day of the hustle and bustle of the outside world.
Putting a mobile home on your own land can serve all of these purposes, and more!
You should feel at ease in your home. It is easier to relax in a house you can afford or, better yet, in a house you own. Comfort is just one of the factors to consider when thinking about placing your mobile home on your own land.
Placing your mobile home on your lot is one of the best things you can do if you own a mobile home. Here are some reasons:
Access to Alternative Financing Options
If you intend to own a mobile home, you should know that there are few financing options designed for manufactured home purchases. Most lenders provide different conventional financing for mobile homes than stick-built homes, which qualify as real property.
Owning the land where your mobile home sits is one of the simplest ways to overcome this hurdle. This way, you can go for a single land/home loan, which attracts a lower interest rate than the one where you take two separate loans. You will also pay closing costs only once, lowering the upfront costs of your home significantly. You can also negotiate a better deal when buying a mobile home and a lot together than when buying them separately from different dealers.
For example, Fannie Mae’s MH Advantage program allows home buyers with land to finance mobile homes with a 3% down payment and a 30-year loan term. Surprisingly, the interest rates for this program are often lower than for stick-built homes.
Enjoy the Privacy of Your Mobile Home on Your Own Land
Most mobile homeowners would consider placing their home in a mobile home community; it is affordable and more convenient. While these communities or parks offer a range of advantages and amenities, they take away most of your privacy. Additionally, these planned developments often restrict what you can do in your home.
If you value the privacy of quieter quarters and don’t want to play by the rules of a mobile home park, placing your mobile home on your land is the best option. Ensure the zoning ordinances and land use restrictions of the lot you intend to purchase agree with what you plan to do with your manufactured home.
Enjoy Appreciating Property Value
Property value and how it appreciates over time is one of the most attractive features of stick-built homes. Well, the value of your mobile home on your own land appreciates as long as you register it as real property and keep up with maintenance. Modern manufactured homes are built with high-quality materials and, according to the latest industry standards, the limited land supply contributes more to property value appreciation.
Land is an appreciating asset, and owning the lot on which your mobile home sits is a huge financial advantage. You can sell your home at a profit or for more than you owe your lender. Again, it increases your equity, enabling you to qualify for higher loan amounts in the future.
Enjoy Tax Breaks
Mobile homes are considered personal property, and mobile homeowners pay an annual license tax. However, real property affords you more tax benefits than personal property.
Converting your mobile home into a real property avails you of a series of tax breaks available to traditional homeowners. These include property tax deductions, buy-down points, interest deductions, home improvements, homestead exemptions, and home office expenses.
Considerations for Placing Your Mobile Home on Your Own Lot
If you are considering buying a mobile home, one of the ways to get the most out of it is to purchase a piece of land on which to place your home. However, before you start searching for land, you should consider a few factors to ensure that your lot aligns well with your finances and housing goals. Here are the most important considerations before purchasing a piece of land to place your manufactured home.
Loan Approval For a Mobile Home on Your Own Land
You will want to get your loan approval before you can start searching for a vacant lot or ordering your mobile home. This will help you to accurately estimate how much you’ll have to spend on your new home. You can narrow down your search to lots and mobile homes in your price range and according to your preferences.
For example, if you qualify for a $200,000 land/home loan, your lender may allocate $150,000 for the home and $50,000 for the lot. Additionally, your loan approval provides leverage when negotiating land deals. It shows you are serious about buying land and know exactly what you want.
We have an article here dedicated to finding a cheap mobile home.
Lot Location and Size
The size of your lot is critical because it affects the size of the manufactured home you can place on it. So, before signing a deal for any lot, ensure that the house you have in mind is a good fit for the land.
You can find vacant lots in remote locations, mobile home parks, or conventional neighborhoods. Residential neighborhoods and mobile home parks are good if you are looking for regular living. However, if you want plenty of outdoor space and value your privacy, you should consider buying land in a remote location.
Zoning Regulations and Land Use Restrictions
Check the zoning requirements and land use laws for the area where you intend to buy land before closing the deal. Zoning regulations may prevent you from having a manufactured home in certain locations. Land use restrictions may limit the size of manufactured homes or prohibit certain land uses, such as for business purposes.
Check out this article from Homes Direct about putting a mobile home on your own land.
Amenities and Emergency Services
If you favor placing your home in remote areas, access to amenities and emergency services are critical considerations. Buying a lot away from utility points may lead to extra costs and delays in connections and the installation of basic amenities.
Consider whether fire and emergency services are available where you intend to buy a piece of land to put your mobile home.
Drawbacks to Placing Your Mobile Home on Your Own Land
There are very few drawbacks to owning the lot on which your manufactured home sits. The experience is only second to owning a traditional stick-built home. In some instances, these homes provide the same quality of life. However, there are a few items to look out for on your journey to homeownership.
1. It is More Expensive
While manufactured homes are some of the cheapest housing options available, placing one on your lot may prove to be an expensive affair, especially if you do not already own the land. Prime land is hard to find and expensive. Additionally, converting a ‘raw lot’ into a home is a serious development project.
When you move into your new home, low ongoing costs easily offset the huge initial investment you have to make.
2. Cost of Utility Connections
You must apply and pay for utility connections after fixing your mobile home to a permanent foundation in your lot. The cost of utility installations will depend on the location of your lot.
3. Navigating Regulations and Permits
Converting your mobile home into a real property can be a difficult and time-consuming affair. One of the most significant assignments is finding a lot that checks all the boxes at a fair price. These are location, zoning regulations, land use restrictions, utility availability, permits, and all the other documents you need to submit for approval.
This is not to say that it is not achievable. You can easily own a mobile home and the land it sits on by following the laid-out procedures. You can always hire professional help to handle some of the tasks where necessary. The joy and comfort of living life on your terms in your house are worth it.
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