Are Double Wides a Good Investment?

Double-wide manufactured homes are a type of factory-built housing. These homes are constructed in two or more sections at a factory, then transported to a home site where they are joined together. A double-wide home creates a larger floor plan, often resembling a traditional site-built home, with sizes typically ranging from 1,000 to 2,500 square feet.

All manufactured homes, including double-wides, must adhere to the Federal Manufactured Home Construction and Safety Standards, commonly known as the HUD Code, established on June 15, 1976. This national standard ensures quality control and consistent construction processes, as homes are built indoors, mitigating weather delays.

Initial Financial Outlay

Acquiring a double-wide manufactured home involves several upfront expenses. The average cost for a new double-wide manufactured home in the U.S. was approximately $156,300 as of late 2024, though this can vary based on size, customization, and regional differences. This price typically includes the home’s construction and initial transport.

Additional costs include delivery and setup, which involves transporting and assembling the home sections. Foundation costs are also a factor, as a permanent foundation is often required for stability and financing. Utility connections for water, sewer, and electricity are further expenses. Permitting and inspection fees, mandated by local authorities, are also necessary to ensure compliance with zoning and safety regulations.

If the double-wide is not placed in a leased community, land acquisition costs become a substantial part of the initial financial outlay. The price of land varies widely by location, impacting the overall investment significantly.

Ongoing Ownership Expenses

Ownership of a double-wide manufactured home involves recurring costs. Property taxes are a regular expense if the home is situated on owned land, similar to traditional site-built homes. These taxes are assessed by local jurisdictions and contribute to community services.

For homes located in manufactured home communities or parks, lot rent or community fees are a consistent monthly charge. This rent, which can range from approximately $500 to $1,200 per month nationally, covers the use of the land and often includes access to community amenities. Some communities might bundle utilities or other services into the lot rent, while others charge them separately.

Home insurance is another ongoing expense, protecting against damage to the structure and personal belongings. Mobile home insurance typically costs between $800 and $2,000 per year, though this can vary based on location, the home’s age, and selected coverage options. Policies often cover perils such as fire, wind, and vandalism, but may require separate coverage for floods or sinkholes.

Maintenance and repair costs are also continuous, as with any home.

Factors Influencing Value Over Time

The long-term financial performance of a double-wide manufactured home is influenced by several factors. A primary determinant of value is whether the home is placed on owned land or leased land within a community. Manufactured homes on owned land tend to appreciate similarly to site-built homes, as the land itself contributes significantly to the property’s overall value. In contrast, homes on leased land may face limitations in value appreciation, as the homeowner does not own the underlying real estate.

The quality of construction and materials plays a role in the home’s longevity and appeal. Homes built with higher-grade materials and superior construction methods often retain their value more effectively. The age and condition of the home also directly impact its resale value; newer homes built to current HUD Code standards generally command higher values. Regular maintenance and timely repairs are crucial for preserving the home’s condition.

Location is a significant driver of value for any type of real estate, including manufactured homes. Homes situated in high-demand areas, or those with access to desirable amenities, schools, and employment opportunities, are more likely to appreciate. Local market demand for manufactured housing also affects value, with strong demand supporting higher resale prices. Community rules and regulations, particularly in leased land communities, can impact value by influencing the home’s appearance and overall community appeal.

Financing Options

Several financing options are available for purchasing double-wide manufactured homes. Chattel loans, which treat the manufactured home as personal property rather than real estate, are a common financing method, especially when the home is placed on leased land in a manufactured home park. These loans typically have higher interest rates and shorter repayment terms compared to traditional mortgages, often requiring a down payment of 5% or more.

Government-backed loans, such as those from the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA), offer more favorable terms. FHA loans for manufactured homes generally require the home to be permanently affixed to owned land and meet specific HUD standards, including being built after June 15, 1976. These loans can have down payments as low as 3.5% for borrowers with a credit score of 580 or higher.

VA loans are available to eligible veterans, active-duty service members, and surviving spouses, often requiring no down payment and offering competitive interest rates, provided the home is on a permanent foundation and classified as real property.

Conventional mortgages are typically available only if the manufactured home is permanently affixed to owned land and classified as real property. These loans are not government-backed and generally require a minimum credit score of 620 and a down payment of at least 5%. Interest rates for manufactured home loans can vary, ranging from approximately 6.75% to 9.00% as of early 2025, influenced by factors such as credit score, loan term, and the home’s condition and placement.