5 Things You Need to Know About Living in a Mobile Home

A mobile home, sometimes called a manufactured home, is made entirely in a factory and moved to the desired location instead of contractors building the home on-site. Mobile homes are not necessarily truly mobile since they are semi-permanent but have mobile capabilities when necessary.

Most mobile homes in Canada are either single-wide or double-wide. Single-wide mobile homes are at most 90 ft. long and 18 ft. wide. They cost the least and are the easiest to move since they are a single structure. Double-wide mobile homes measure over 20 ft. wide and have two large pieces, making them more challenging to transport.

Mobile homes have increased in popularity in recent years due to their lower prices and ease of transport. Some homeowners live in mobile home parks, while others buy a piece of vacant land to place their mobile homes. In today’s Canadian real estate market, living in a mobile home can be an alternative and more affordable to conventional homeownership.

Indeed, mobile homes are a great option for people looking for affordable housing. This is especially true for expensive places like British Columbia. With rising house and condo prices and equally high increases in rent, mobile homes seem like a fairly logical financial choice for people who are deeply in debt and cannot continue to pay more than $2,000 for a small apartment.

Mobile homes can be purchased for as little as $150,000, which can be extremely beneficial in terms of low mortgage payments. Not only do these homes include water and sewer utilities, but some can easily settle in four-season parks and have access to recycling and waste collection, as well as snow removal in winter and leaf removal in fall.

The money one can save with a mobile home is its key selling point. A starting home in BC would cost a minimum of $700,000. On the other hand, a 1,000-sq.-ft. mobile home can be easily purchased for $200,000. Mobile homes are also more energy efficient and can be built in half the time compared to a custom house. This is why mobile homes are now being considered by younger people and first-time homebuyers, seniors, and retirees. The market could grow even further if there were more development of home parks.

Mobile homes are now available at many price points and can range from economy versions to high-end. Many homes that are priced slightly higher look as if they were built on-site. There are single-wide units and double-wide units. Some companies are now also making triple-wide mobile homes. In rural areas, many people buy or rent real estate where they can place their mobile homes. In urban areas, mobile owners can rent or lease a lot in a mobile home park, typically on the outskirts of town.

Overall, mobile homes are an excellent way to make the dream of homeownership a reality. They cost less per square foot compared to a built home, and you can get more space for less money. Mobile homes provide tremendous flexibility as they are easier to move compared to a built home. Their financial benefits are slowly overtaking the perception that mobile homes may not offer quality of life. Not everyone can afford to take a $700,000 or $1 million mortgage, and many people do not have sufficient savings for a proper 20-per-cent down payment.

With housing prices continuing to skyrocket, are mobile homes worthwhile alternatives? Here are five things you need to know if you have been thinking about purchasing a mobile home to live in.

Mobile Homes Depreciate in Value

When you buy a house, you can perform renovations and upgrades that will increase the home’s value over time. However, a mobile home almost always depreciates regardless of any additions. Like a new car, once a mobile home leaves the factory, it quickly drops in value. The reason for the difference is the underlying land. When you buy a house, you also buy the land underneath it, but unless you have placed your mobile home on land that you own, it is considered personal property. If you own the land with your mobile home, you may see the value of your property increase over time, but that is almost certainly the result of the land, not the mobile home.

You May Not Be Able to Get a Mortgage on a Mobile Home

Getting a mortgage for a conventional home is reasonably straightforward, but a mobile home is trickier because you may need to look at other options to finance it. If your mobile home is situated on a foundation and you own or plan to buy the land it is based on, then you may be able to get a traditional mortgage for it. If you own the land, but your mobile home is movable, then it typically isn’t eligible for a conventional mortgage. Still, you can look at a chattel mortgage, which secures the loan with the personal property. If you do not own the land but plan to move into a mobile home park, then a personal loan is likely your best option; however, be wary of any loan limits your lender may have to ensure that you can fully cover the mobile home.

Proper Mobile Home Installation is Crucial

Improper or incorrect installation of mobile homes accounts for approximately 80 percent of all warranty complaints and can result in severe damage to the house. After only a short time, homeowners can experience issues like leaks that intensify over time to warping and bowing in the home, which is very expensive to repair. There are various types of foundations available for mobile homes that will ensure they are properly situated. You also want to make sure there is a slope on one end around the house to ensure that water does not pool underneath it.

The Doors on Mobile Homes Are Smaller Than Traditional Homes

There are many renovations and upgrades that can be done to a mobile home to make it more modern. One of the main things mobile homeowners do is replace the doors because they are usually smaller than those installed in site-built homes. Upgrading doors is the top mobile home improvement based on return on investment. You can also replace the windows with site-built home windows that are more energy efficient, but you will likely have to retrofit them since they are typically a non-standard size.

The Stigma Around Mobile Homes is Lessening

In the past, living in a mobile home often came with stigma since many people associated them with poverty and low-income areas. This has been slowly changing as more people cannot afford conventional homes and are looking at alternatives to make their home-buying dreams a reality. Additionally, some manufacturers make high-end mobile homes that barely resemble the mobile homes that most people are familiar with.

Ultimately, mobile parks have rarely possessed a good reputation, but things are gradually changing as more development occurs. Mobile home standards have largely improved. These homes are not made with low-quality materials. Instead, they have solid metal frames, excellent wood construction, drywall, and long-lasting roofs. That is why mobile homes are backed by the Canada Mortgage and Housing Corporation today. Mobile homes are also regulated under the Safety Standards Act, ensuring safety considerations are met.

In the end, mobile homes are an excellent choice for many families as housing affordability challenges persist. An experienced real estate agent can help you find your perfect mobile home and land to go with it.