What Fees Are Associated With Buying a Mobile Home?

Mobile homes offer a pathway to homeownership that can be more accessible than traditional site-built houses, often at a lower initial purchase price. However, the sticker price represents only a portion of the total investment. Numerous additional fees and costs are involved in acquiring, transporting, setting up, and maintaining a mobile home. Buyers must consider these expenses for accurate financial planning and to avoid unexpected financial burdens.

Fees Associated with the Mobile Home Unit

Sales tax applies to mobile home purchases, similar to vehicles. This tax is calculated based on the home’s purchase price, though rates and application vary by jurisdiction. Some jurisdictions apply sales tax on the entire retail price, while others might offer a reduced rate or base it on a percentage of the dealer’s cost.

Delivery and transportation fees are incurred when moving the mobile home from the dealership to its site. Costs vary based on distance, home size (single-wide, double-wide, or triple-wide), and whether the service includes full setup or just transport. A full-service move for a single-wide home can range from $3,000 to $8,000 for distances up to 60 miles, while a double-wide might cost between $4,000 and $15,000. Additional expenses can arise for longer distances, often exceeding $20,000 for moves over 100 miles, due to permits, escort vehicles, and labor.

Installation and setup fees cover the professional work to place the mobile home on its foundation, ensuring it is level, anchored, and multi-section homes are properly connected. These services, ranging from $1,000 to $5,000, include tasks like disconnecting and reconnecting utilities, reinstalling skirting, and securing the home. Proper installation ensures structural integrity and compliance with safety regulations.

Site preparation costs involve readying the land for the mobile home. This includes clearing debris and trees, ranging from $500 to $5,000, and grading and leveling the site for drainage and a stable foundation, costing between $1,000 and $4,000. The overall cost for land preparation can vary significantly, influenced by the land’s existing condition and the complexity of the required work.

Permits and inspections ensure the mobile home’s placement and occupancy comply with local and state building codes. These governmental fees range from $500 to $2,800, depending on required permits like building, electrical, septic, or well permits. Multiple inspections may be required throughout the setup process, adding to the overall cost.

Utility hookup fees involve connecting the mobile home’s plumbing, electrical, and gas lines to main utility services at the site. Costs vary from a few hundred to several thousand dollars per utility, depending on distance to existing lines and installation complexity. Connecting water, electricity, and sewage can range from $6,500 to $30,000, especially if new lines need to be run over a significant distance.

Fees Associated with Financing and Closing

Loan origination fees are charged by the lender for processing a mobile home loan application. These fees, ranging from 0.5% to 1% of the loan amount, cover administrative costs.

An appraisal fee is incurred for a professional assessment of the mobile home’s value to ensure it aligns with the loan amount. This evaluation confirms the property serves as adequate collateral. Appraisal costs are a standard part of financing.

Title search and title insurance fees verify clear ownership of the mobile home and land. A title search investigates the property’s history for liens or disputes, while title insurance protects against future ownership claims. These fees ensure a secure title transfer.

Escrow fees are charged by a neutral third party to hold funds and documents related to the sale until all transaction conditions are met. This ensures obligations are fulfilled before ownership transfer is finalized.

Legal fees may be incurred if an attorney is involved in drafting or reviewing contracts. Attorney fees for a typical home closing can range from $750 to $1,250. Some states require attorney involvement in real estate closings.

Recording fees are charges levied by the local government to record ownership change documents. This process provides public notice of new ownership and any associated liens.

Closing costs encompass the collective expenses paid at the conclusion of the transaction. These costs range from 2% to 5% of the total loan amount or purchase price.

Fees Associated with the Land or Lot

When purchasing land with a mobile home, buyers are responsible for property taxes. These annual taxes are prorated at closing. Property taxes are a recurring expense of land ownership.

Land survey fees are incurred for a professional survey to determine property boundaries and identify any easements or encroachments. This helps ensure the mobile home is placed correctly within the property lines.

Deed transfer taxes are imposed by state or local governments on the transfer of real estate ownership. These taxes are calculated as a percentage of the sale price. Responsibility for payment can vary by jurisdiction.

If a buyer leases a lot in a mobile home park, the expense is lot rent or lease fees. This monthly or annual fee covers the cost of renting the space. Average monthly lot rent ranges from $200 to $800, but can reach over $1,200 in high-demand areas. This fee may include services like common area maintenance and trash collection.

Community application fees are imposed by mobile home parks for processing new resident applications. These fees cover background checks and administrative costs. They are an upfront expense for residents in leased lot communities.

Homeowners Association (HOA) or community association fees may apply in some mobile home parks. These fees contribute to the maintenance of shared facilities, amenities, or services within the community.

Initial utility connection fees are deposits or activation charges by utility companies. These deposits are required to establish service for electricity, water, sewer, and gas at the new site.

Other Essential Upfront Costs

Mobile home insurance premiums are an upfront cost, often required by lenders. These policies cover the structure, personal belongings, and liability. The average annual cost for mobile home insurance ranges from $700 to $2,000.

A home warranty provides coverage for repairs or replacements of major appliances and systems within the home. While optional, a home warranty offers financial protection against unexpected repair costs. These warranties cost between $480 and $840 annually, or $40 to $70 per month.

Additional utility deposits may be required for services beyond basic water, sewer, and electricity. These deposits are one-time charges to establish service accounts. Buyers should budget for these supplementary deposits.

The cost of moving personal belongings into the new mobile home is an expense associated with the transition. This can include hiring professional movers, renting a moving truck, or purchasing packing supplies.