Mobile vs. Modular? Doing the Math

[rmurray]

Judy

You are mixing your terms...If the home is in a land lease community you are buying a manufactured home...Mortgages are plenty available...The rate you mention seems a little high for the current market and your large down...Since the lender does not have ground as collateral...the loan is more risky for them than a real estate mortgage with the dirt involved in the loan...BUT most often closing costs are much lower on these home only loans...

There is a Fannie Mae finance plan for those in lease communities...which does have lower mortgage rates and terms to 30 years..but the park lease must meet tough Fannie Mae regulations...It would have to be for at least 35 years...

You might find even a better rate here in the loan section of this web site..Submit a request for loan proposals here and to get offers from multiple lenders who specialize in manufactured homes...

Submit here.. http://mfdhousing.com/loanfinder.php

Good Luck..Maybe you will get a loan for a little lower rate...

[Rita]

What is the difference between a Manufactured Home and a Modular Home????

[Kelley]

I have grown so weary of this conversation. After ten years in the industry I've learned a thing or two...and one is that a MH packaged with land will appreciate if it has been properly maintained and it's in an area that is appreciating in value. That's an undisputable fact that can be proven over and over. I am a Realtor who specializes in the re-sale of packaged MHs. I am also a Sales Manager at a retail center that sells both MH and Mods. I am re-selling homes I sold new five years ago and almost without fail my customers are seeing a profit. And the interest rates are the same as Mod rates, or less on re-sale as new construction rates are a tad higher.

I have one thing to add to the discussion. After 10 years in the business, knowing all that I know, I would buy a well built MH over a Modular home. In fact as my retirement approaches that is exactly what I plan to do. I am going to take advantage of the small minded folks on my town planning board and tax commission who find less value in a MH and therefore tax it at a lower rate. I will have the same or better quality home as my modular neighbors but my property taxes will be lower. Also, because I will care for my home and landscape and improve it, it will appreciate at the same rate as my neighbors, market value as opposed to assessed value. I want my assessed value low! It's only market value that counts in my book. In my area it snows half the year, and the ground is wet most of the time and wood eating bugs are a problem. So, I would rather have a construction grade steel frame under my home than wood floor joists.

Just my eductated two cents.

[rmurray]

Here is a short description of all thew types of home built in factories...

http://www.manufacturedhousing.org/unde ... _built.htm

[Chris]

If you place a manufactured home (double wide or triple wide) on a permenant foundation, slab or perimiter, many banks will consider it as a home and finance it with traditional mortgages. In some cases, you may pay .5% interest, which you would be paying if you decided to use it as a rental property.

Here are two scenarios in California:

1) Site-built home: Minimum cost of $150/square foot (for a decent property) so a 1400 square foot, 3BR, 2BA home would cost around $210,000 for the home.

2) Manufactured home: Minimum cost of $50/squre foot (for a decentl property) so a 1400 square foot, 3BR, 2BA home would cost around $70,000 -- this is only 1/3 the cost of a site-built home.

If you place the manufactured home on highly sought after land -- then the manufactured home will appreciate at equal proportions to the site built home -- it is the land that appreciates more than the replacement value of the home.

Site built homes are outrageously expensive because of all of the overhead and all of the people making their living off of little old you. Even modular homes, which are built in the factory, will cost you well over $100 per square foot for a decent home.

Manufactured homes will only depreciate when placed on rented land and when not put on permanent foundations and perhaps when they still have the old single structure look of a mobile home.

Let's exclude land costs in the comparison, but land would cost anywhere from $150,000 to over a million. So, you're looking at $360,000 minium for a half -decent home site-built home.

[Doelii]

I found this page looking for a durability study and thought it to be entertaining. I would like to know the durability, reliablity and operating value of a SIP or ICF home against the mobile home. I have yet to see a single mobile home not "go to pieces" over time. I will say that I am seeing more quality mobile homes being made but as "stick built" is actually a sub-standard build at this point in technology, why are those above wasting our time using them as examples.

To the modular home's credit, I have seen where they have begun to use SIPs in their construction(I just can't imagine why this change is happening, hmmm.). Seriously folks, it is just absolutely laughable how you are comparing two very outdated products. The Mobile Home is built to a 28 year old standard(I am so sure that technology has stood still) and even "stick built" homes are considered a thing of the past if you are looking for durability, reliability and the operating costs of the house. If you have not noticed, you can actually qualify for a higher loan for an energy efficient home due to the ridiculous operating cost of the old standards, ("stick built", mobile or otherwise).

Due to the economics of scale, these improved ways of building homes are still more expensive but they are able to use the operating cost of the home as a equalizing value. So if anyone could please direct me to a site that can show that a modern/current designed MOBILE home can even closely stand up to the "Current" technology of home building (and no I suppose it doesn't have to undergo a projectile or blast test as is becoming one of the tauting features), I would greatly appreciate it. I am currently in a discussion concerning this issue with a Wells Fargo representative to the Native Americans and would entertain the opportunity to be proven wrong. Thank you.