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Mobile homes are often a more  affordable option for the first time home buyer.  If you are considering buying a home, but can’t seem to make the numbers work out, you might find mobile homes more in your price range.

My brother, David, bought a mobile home as the first home he owned.  When he decided to buy a home, he didn’t make a lot of money.  He worked in a school district warehouse moving boxes from place to place.  In Southern California it was very difficult to buy a home on his income.

David bought a one bedroom single wide mobile home in a trailer park just across the street from the LA County Fairgrounds parking lot.

I remember I used to visit him there when I was still renting an apartment.  I would go there when I needed a place to work on my car because the apartment management didn’t allow me to do it in the parking lot.  David was a big help when it came to cars, too.

His mobile home was not new and was not fancy, but he owned it.  He had taken the leap from being a renter to a home owner.  This may not seem like a big step to some, but it makes a big difference in mindset.

If you are wondering if the first time home buyer tax credit is available for mobile homes, the answer is yes.  But remember it is only for 10 percent of the purchase price so homes under $80,000 will not qualify for the full $8,000 maximum credit available.

Even if you are only able to get a $5,000 credit on a $50,000 purchase that is an extra five grand in your pocket.

Mobile homes are treated differently than other home sales in some ways.  Some things you may want to be aware of when considering a mobile home purchase are:

• Used mobile homes are usually sold with seller financing because most lenders won’t finance them.
• Mobile home manufacturers offer financing on new mobile homes.
• They are often referred to as “manufactured homes”.
• Mobile homes can be on rented spaces in a mobile home park or on land which is sold with the mobile home.
• Mobile homes can depreciate more than single family residence (SFR) properties, especially in parks.
• It may be more difficult to sell a mobile home unless you offer seller financing to the buyer.
• An additional expense to consider may be the lot rent for mobile homes in rented spaces.
• Mobile homes are usually in two widths: single-wide (14 foot) or double-wide (28 foot).

You can find more information about buying mobile homes in the Manufactured Home Buyer’s Handbook

Comments (5) May 12 2009