What Are the Requirements to Buy a Mobile Home?

Purchasing a mobile home offers unique considerations compared to traditional residences. This guide outlines the essential steps and criteria, from understanding structural standards to securing financing and navigating legal processes.

Understanding Mobile Home Characteristics and Standards

Manufactured homes are factory-built housing units constructed to a federal standard. The U.S. Department of Housing and Urban Development (HUD) established the Manufactured Home Construction and Safety Standards, known as the HUD Code, in 1976. This code governs design, structural durability, transportability, fire resistance, and energy efficiency, ensuring a uniform national building standard. These standards are periodically updated.

Manufactured homes are categorized by the number of sections. Single-wide homes are one unit, typically 13-18 feet wide and up to 90 feet long (800-1,200 sq ft). Double-wide homes consist of two sections, 20-36 feet wide and up to 90 feet long (1,000-2,400 sq ft). Triple-wide homes combine three or more sections, often exceeding 2,000 sq ft. These dimensions influence interior layout, transportation, and placement.

Financial Qualification and Funding

Financing a manufactured home requires meeting lender criteria, including creditworthiness, income stability, and existing debt. Most lenders require a minimum credit score of 580-620 for mobile home loans. Some government-backed programs, like FHA loans, may accept scores as low as 500-589, potentially with a larger down payment. Conventional loans often seek scores of 620 or higher.

Lenders assess a borrower’s debt-to-income (DTI) ratio, which compares total monthly debt to gross monthly income. Most lenders prefer a DTI ratio of 43% or lower. Some loan programs, particularly government-backed ones, may allow DTI ratios up to 50%. A lower ratio can improve loan approval prospects. Lenders may also look at a housing ratio, typically 32-35% of income for housing costs.

Financing options include chattel loans and mortgage loans. Chattel loans finance the home as personal property when the land is leased or not purchased. These loans have shorter terms (10-25 years) and may carry higher interest rates than traditional mortgages. Mortgage loans are for homes permanently affixed to owned land, classifying them as real estate. These loans offer longer terms (15-30 years) and lower interest rates, similar to conventional home mortgages.

Down payment requirements vary by loan type and lender. FHA loans require a minimum 3.5% down payment for borrowers with credit scores of 580 or higher. Conventional loans typically require 5-20% down, while chattel loans may ask for 5-10%. VA loans, available to eligible service members, veterans, and spouses, offer no down payment. If a buyer owns the land, its equity can sometimes cover the down payment.

Site Selection and Land Requirements

Determining where a manufactured home will be placed impacts the purchase process. Two options exist: placement within a mobile home park or on private land. Each option carries its own considerations and regulatory requirements.

Mobile home parks offer designated lots. Buyers must account for lot rent, a recurring expense. Each park operates under specific rules and regulations governing home size, appearance, and resident conduct, which should be reviewed.

Placing a manufactured home on private land requires adherence to local regulations. Zoning laws dictate where manufactured homes are permitted and may specify minimum lot sizes or setback requirements. Verify local zoning ordinances to ensure the property is suitable.

Permits are required before and during installation. These include building permits for placement, and electrical, mechanical, and plumbing permits for utility connections. Some jurisdictions may also require permits for site preparation. Licensed installers are often required to obtain these permits.

Access to essential utilities is required for private land placement. This includes connections for water, sewer or septic systems, and electricity. Ensure the property has access to these services, or understand the cost and feasibility of extending them.

The foundation type is important for financing and long-term stability. Manufactured homes can be placed on non-permanent or permanent foundations. Many loan types, including FHA and VA loans, require a permanent foundation. A permanent foundation is site-built using durable materials like concrete or wood, designed to anchor the home securely. Common types include pier and beam systems or concrete slabs.

The Purchase and Titling Process

After identifying a home, securing financing, and confirming a location, negotiate the purchase agreement with the seller or dealer. This agreement outlines the terms of sale, including price and contingencies. A thorough purchase agreement protects both parties’ interests.

Before finalizing the sale, conduct a pre-purchase inspection. This assesses the home’s structural integrity, examining components like the chassis, subfloor, and tie-downs. The plumbing system should be checked for leaks, and the electrical system inspected for proper wiring and safety features. Inspectors also examine the HVAC system, roof, siding, skirting, and doors and windows. These inspections identify potential issues, allowing for negotiations on repairs or price adjustments.

After purchase, arrange for transport and installation. This involves hiring licensed professionals to move the home to the prepared foundation. Installation includes setting the home on its foundation, connecting utilities, and completing any necessary on-site assembly for multi-section homes. Permitting for installation is usually handled by the licensed installer.

Titling and registration determine the legal classification and tax implications of the manufactured home. A manufactured home can be titled as personal property or real property. If not permanently affixed to land or located on leased land (e.g., in a mobile home park), it is generally titled as personal property, similar to a vehicle. It may be subject to annual registration fees and personal property taxes.

If the manufactured home is permanently affixed to land owned by the homeowner, it can be converted to real property. This process involves surrendering the personal property title and filing an affidavit of affixture with the local land records office. Once classified as real property, it is taxed similarly to a traditional site-built house, with property taxes assessed on both the home and the land. This reclassification can also impact financing, making the home eligible for traditional mortgages.