Is a Manufactured Home Right for You?

Posted on 19 October, 2020

Record-low mortgage rates drove home sale contracts even higher in August of this year as the U.S. housing boom showed no signs of slowing down. According to the National Association of Realtors’, Pending Home Sales Index jumped 8.8 percent in September 2020 to a record high of 132.8. Part of that housing success is related to the surge of manufactured home sales.

More than 22 million people in the United States live in these manufactured homes, accounting for 10 percent of new single-family home stats. As the average price per square foot for a manufactured home is only $49 compared to about $107 for a site-built home, affordability is a factor.

But are manufactured homes right for you? It’s best to weigh the pros and cons first before diving in.

Pros of Manufactured Homes

Affordability: usually, buying a manufactured home is more affordable than buying a traditionally built home. The average price per square foot is $49 for manufactured homes, as listed above, and since such investment properties are affordable, homeowners could find themselves paying a mortgage of only $200-$300 per month.
Versatility: Unlike traditional homes, buying a manufactured home allows you long-term options for customization. Real estate investors can start small and add more upgrades as needed or desired. From site-built garages to decks to patio covers, there is a variety of ways to customize.

Quick Install: While a traditional home takes up to six months to build, a manufactured home property takes only two or three months. Since a workforce builds the home in a controlled environment, buying a manufactured home moves fast.

Energy Efficiency: Manufactured homes are very energy efficient and eco-friendly. The HUD code requires that these mobile homes attain a high energy efficiency level with on-demand water heaters, insulated skirting, energy-efficient windows, and insulation under the home. Water-saving faucets and fixtures, energy-efficient lighting, and energy-saving appliances can help improve efficiency even more.

Manufactured Home Insurance

Regardless of the benefits of buying a manufactured home, it’s important to protect it with local coverage, such as CT Manufactured Home Insurance. Like regular homeowners insurance, this insurance coverage provides a safety net for manufactured homes in the event of an accident or liability.

Beyond the regular liability protection, CT Manufactured Home Insurance provides clients comprehensive coverage that includes coverage for medical payments and living arrangements. Having this peace of mind available can limit the stress around the potential fallout from risks like floods, injuries, and significant damage.

Cons of Manufactured Homes

Lender Requirements: Financing for manufactured homes is complicated. Usually, lenders offer mortgages for purchasing real property or structures built on land. Mobile homes often don’t meet these requirements when it comes to a mortgage.
Long-Term Value: While traditionally built homes are likely to appreciate, manufactured homes are more likely to depreciate. In the short term, buying a manufactured home could help people right away when it comes to property tax bills being low. But in the long term, depreciation reduces the resale value of these homes.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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Phone: (860) 774-8549

394 Lake Rd

Dayville, CT 06241

United States

info@byrnesagency.com

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Phone: (860) 886-5498

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Norwich, CT 06360