Financial Considerations Before Buying a Manufactured Home

Manufactured homes are becoming popular because of their affordability, ease of maintenance, and customization features. Currently, over 21 million individuals in the US live in manufactured housing.

Since they’re less expensive, manufactured homes make financial sense if you’re searching for a residence with a comprehensive set of features for a notably lower cost. But despite their cost advantages, there are financial factors one needs to consider when buying a manufactured home.

With expenses consistently increasing, finding ways to save money is on every home buyer’s mind. Before purchasing a manufactured home, take the following financial considerations into account:

Good Credit Score

Good credit indicates that your financial situation and other aspects of your life are right on track. It’s good to know that alternative financing options like CreditNinja no credit check loans offer quick cash if you need funds to pay off debts or finance significant purchases.

However, buying and financing a manufactured home often requires a good credit score, typically above 580. Although qualifications may vary, lenders commonly assess your financial details, including your credit score and income. Hence, check your credit report and improve your credit score before shopping for a manufactured home.

Loan Interest Rates

Most manufactured home purchases don’t come with the land they sit on. It means the buyer doesn’t own the land where the manufactured home is situated. If that’s the case, the home is legally categorized as personal property, like a car. As a result, the asset becomes less secure for banks to lend against.


That, in turn, makes manufactured homes a higher risk to banks and other lenders, which can result in higher loan interest rates. The interest rate can affect your monthly payments and the overall cost of the loan. Thus, before choosing any financing option to fund a manufactured home, shop around multiple lenders and find the rate you can comfortably afford.

Delivery and Installation Costs

Most dealers of manufactured homes incorporate standard delivery and installation costs in the overall sales price. But some don’t factor them into the purchase price, leaving these tasks for the customer to arrange. The delivery and installation costs can range from as low as $5,000 to as high as $13,000.

Before buying a manufactured home, it’s also critical to be aware of the factors that go into the delivery and installation costs. For starters, there’s the consideration of the size and weight of the home.

Depending on such factors, you might need multiple semi-trucks. Escorts might also be necessary for an oversized load, and you might need to acquire permits accordingly. Some sections may need to be transported separately.

Insurance Costs

Home insurance is another financial consideration if you plan to purchase a manufactured home. Like standard insurance policies, manufactured home insurance provides almost the same coverage to protect your home and belongings from potential harm.

However, insuring a manufactured home can cost twice as much as insuring a traditional one. Owners pay more insurance for manufactured homes because they’re more susceptible to wind, tornadoes, fire, hail damage, theft, and vandalism than traditional homes.

Fortunately, there are several ways to get a lower premium for manufactured home insurance. For instance, you can ask about bundling home and auto policies or consider increasing your deductible.

Property Taxes

Like real property, manufactured homes are subject to property taxation. The purpose of property taxes is to generate funds for local initiatives. These may include but are not limited to infrastructure, public safety, and education. Thus, the tax also applies if you own a property like a manufactured home unless you’re exempt.


However, tax considerations for manufactured homes are often complicated. Factors like location and whether the home is classified as personal or real property can influence the specific type and amount of property tax you’ll have to pay.

Maintenance Costs

Maintenance is another important financial consideration of owning a manufactured home. Like traditional homes, manufactured homes will experience wear and tear on certain parts over time. They can be susceptible to leaks and other types of damage. Hence, making repairs and keeping the manufactured home in good working condition is vital.

The cost of maintaining and upgrading a manufactured home can differ based on numerous factors, like the size of the home and the types of upgrades. Regardless, careful planning and budgeting are essential to enjoy the benefits of owning a manufactured home.

Wrapping Up

Manufactured homes provide many individuals and families with the ability to live in a comfortable place while keeping control over their budgets. The total cost of ownership can be significantly cheaper than owning a conventional home or apartment.

Still, there are various fees that you need to cover after buying a manufactured home. Handling the financial aspect of a manufactured home purchase with careful consideration is essential. If necessary, don’t hesitate to seek proper guidance from a professional before investing in this type of property.