How do ordinary people finance mobile home purchases??
I'm referring to mobile homes that are for sale in mobile home parks. Banks will not mortgage them because they are not considered property unless they are on their own land with a permanent foundation. So when I see these mobile homes in a park for sale at 60K or 80K or 100K .. how the heck do people buy these things? I can't imagine getting a conventional bank loan because the interest would be insane. Does anybody know how an average Joe buys a mobile home??? Yes, I'm talking about mobile/manufactured homes, not RV's lol. I'm not asking for advice on whether I should buy one or not. I'm asking HOW do people buy these things, and afford them? It seems that if you're paying $1000 or more a month for a mobile home loan, why not just buy a house? Just trying to comprehend how folks buy these things, cause they are all over the place where I live (Delaware).
Public Comments
- the average Joe driving these monstrosities are over 65 and have sold their homes, and have sunk their retirement savings into them just to keep the gas tank full. Not in my plans....
- I think the other answerer to this question thought you were talking about RV's. You are refering to modular/mobile housing correct? If you check at the mobile home park where you saw them for sale, you will find that they usually finance them there or that they have lenders who DO and WIll loan money on them to the "average joe".
- The interest would be insane because it is a bad investment. Don't do it. Find something else.
- I found a bank that specializes in them. I got one for under $80k where the median home price is $640,000 in my city. I think it is a great investment, IF it is in an expensive area. I had to put 20% down, you have to on a mobile home. I lived with friends for a few years and saved my money for the down. I also pay 8% interest. Space rent and a 30 year mortgage is less than $1200 a month. I couldn't rent a 2 bedroom apartment for less than that! Plus when I sell I will get some of my money back. If you can afford $3000+ a month mortgage on a regular house, more power to you, but I can't right now. What kind of person am I? I'm 29 and a college grad with a professional job.
