Buying a mobile home is a big investment and a decision that should not be rushed. First of all, the thing you need to be most aware of when considering entering the process of purchasing a mobile home is that you will not be able to take out a mortgage in the same way that you would with a traditional house, made of bricks and mortar.
The reason you can’t get a mortgage on a park house is that, although you may own the property itself, you are still liable for recurring site charges for the land it sits on .
That said, there are three main methods in which you can finance the purchase of a mobile home, the best option depending on your personal situation. Options include:
Financing a mobile home with a bank or credit loan
Although you cannot obtain a mortgage to finance the purchase of a house in the park, you can take out a loan from the bank to finance your investment or apply to buy your mobile home on credit. However, this rate will be significantly higher than you would expect with a mortgage, and you will probably need a higher deposit rate (around 20% depending on the bank you apply for a loan from). ).
Buying on credit is a great option for anyone who prefers not to have home loans hanging over them, potentially leaving a considerable amount of money in your pocket.
Buy a mobile home purely and simply
If you are in a financial situation where you can purchase a home in a park, this is definitely the best option. Without the costs of repaying loans over several years, or the need to fund a deposit, this makes the cost of living much cheaper on a monthly basis.
Those who are near retirement or have already retired are most likely to have the necessary assets to set aside that can be used toward purchasing a home in the park. If you are looking to invest in a mobile home to use as a second home, the option to sell your current home is not available (unless you already own multiple properties and are willing to sell one ). The majority of those looking to invest in a mobile home are likely to have either a retirement fund or life savings available to them during their working life, which could make it easier to purchase one outright. ‘a house in a park.
Costs to take into account
To finance your mobile home you need to carefully budget the costs involved, apart from the price factor in renovation costs to repair any damage and/or redecoration required.
When you own your home, any repairs or improvements become your responsibility, as do yard work and snow removal. If you place your mobile home in a park, the park owner can maintain the landscape, but you will still need to maintain the home itself.