Considering manufactured home. Advice?

[Tracy]

We are a young married couple, no kids, none in the future, and looking for a housing alternative.

We currently live in an apartment in a large city, and will need to move by the end of 2004 due to rent increases and rising crime rates. We qualified for a small traditional mortgage last year, but were unable to find anything in our market that fit our needs that fell within our price range and backed out of a possible condo purchase and let the mortgage go to wait for something we could honestly live with long term.

We are currently considering a medium sized manufactured home on a lot in a land/home package. Used in good condition or new. Home between 1200 and 1600 square feet. Lot between standard suburb house lot to a third of an acre. We have seen several used home/land packages in the range of the mortgage we had been approved for, and have even found a few new l/h packages for not much more. Monthly payments would be significantly less than our current apartment rent, even on the new homes. And much less than apartment or house rent in a lower crime area. We hold out hope for finding a traditional built home in our price range in a neighborhood we can feel secure in, but it doesn't seem promising at all. So, we are researching our alternatives.

The homes we are currently interested in and investigating more thoroughly are Palm Harbor and Skyline. I have a relative who lives in a Palm Harbor singlewide, and she is very satisfied with her home and has lived there for at least ten years with very little serious wear and tear on the home. I have heard some good things about Skyline, and we are planning on investigating them further. We also have discussed Solitaire homes, but there is no dealership in our area, and we would have to make a day of driving to a town which has one to investigate them further.

Coincidentally, my husband is certified for and does freelance market value appraisals of manufactured housing on rental land for a law firm, and knows how to judge condition and quality. He knows the signs to look for insofar as a home being off level, having moisture issues, etc... So, he knows how to spot trouble and how to spot quality construction. From what he has seen through his appraisal assignments, he is confident in the construction and "liveability" of good quality manufactured housing.

The big negative for us is the depreciation in home value. Losses upon resale, being locked into "trade up/trade in" cycle when the home reaches the end of it's lifespan, etc... We have been told that in some cases, land values may appreciate to a degree to compensate at least partially for the loss of value in the home as it ages. But, haven't researched land value histories in the areas we are looking yet.

The other thing that holds us back is lifespan of the home. We have been quoted anywhere from 20 to 50 years lifespan for a well made manufactured home. At our age, we would most likely outlive the home if we do not move on from it to other housing. How long does a high quality manufactured home that is well maintained last? 50 years seems a stretch to me. That goes back to depreciation. We don't want to get trapped into having to trade in a worn home for a new model and rolling the difference into our mortgage or into a new mortgage and it be a never ending cycle that never results in building any equity or long term stability.

Basically will the home outlive the mortgage and will it be worth anything once it is paid for? Or if we decide to sell and move on, will we be stuck having to eat a loss? From our early research, it doesn't look too promising, but we have not researched the very new higher end manufactured homes.

What I'm looking for I suppose, is some advice regarding the long term issues of manufactured home ownership, and how to take steps to ensure the home retains as much value as possible and lasts as long as possible?

Thanks,
Tracy

[Jason Sardi]

Financing for manufactored housing has become harder and harder even though many manufactored homes are nicer and bigger than traditional houses. That being said, I would say it would be your best bet to look at a doublewide on a permanent foundation (no skirting as well) on land that you own or you are going to buy with the home. Financing for homes where the land is rented is like a car loan and means a higher rate. You should be fine though if you are buying a doublewide on a permanent foundation on land you own. While it probably won't appreciate as fast as a traditional home, it should appreciate none the less. If you are looking in the Pennsylvania area, I can help you. I hope this helps.

Regards,

Jason Sardi
[email protected]
1-866-262-8720 ext. 229

[mac]

I can say out here in rural northwest Oregon, probably 30% of the new homes are manufactured; their prices seem comparable or at least reflective of their cost. We lived in a 1977 Fleetwood Barrington as third owners. The house had little value but its condition reflected that. Nonetheless, we made a few repairs, and could have lived there at least ten more years. However, we could not take advantage of the lower interest rates, to refinance. So, we bought a Karsten triplewide and set it on a slab/ block foundation. Since I am picky about maintenance, and the materials - except for the subfloor - are same as site-built - I expect it to hold its value well.

The old house, by the way, is in Montana. The person we gave it to has stripped the roof off and replaced it, and sheetrocked the interior.

[Wes Crawford]

This question is about skirting. I read in one of these responses that one should not have skirting. Why is that??
Thanks,
wes