Is Manufactured Housing for You?

Are you considering buying a home? There are many who believe that – because of the woeful condition of the current real estate market in general and residential housing sales in particular – now is an extremely opportune time to set out into the prevailing 'buyer's market' and pick up a very sweet deal. Given the surrounding economic circumstances, the pros and cons of such a sentiment can indeed be debated – but not for the purposes of our discussion today. Rather, if you are in the market for a new home but would rather not spend a fortune, we'll consider here the option of purchasing a manufactured home. Let's take a look at some of the pros and cons associated with this type of dwelling.

On the positive side, here are some points in favor of manufactured housing:

• The first and certainly a major advantage is that manufactured homes tend to be more affordable than their traditional counterparts. This is due to the fact that they're built in factories, making their construction much more cost-effective. Traditional homes that are built from the ground up are subject to weather conditions and other problems that may delay the process, thereby adding further to their costs.
• It takes considerably less time to construct manufactured homes because they're prefabricated and built on assembly lines, thereby simplifying the entire process.
• You typically have a choice of the type and size of manufactured home you'd like, and you can have it customized with the amenities you prefer. You may even be able to change, to some degree, the placement of walls in the floor plan you choose.
• The savings you can realize after you buy are comparable with traditional homes. This is because manufactured homes are now also energy-efficient and can significantly reduce the amount that you pay in monthly utility bills.
• A manufactured home can be financed just as you would a traditional home. However, it's important to check carefully with your lender about the interest rate you'll be paying, as it may be a bit higher due to the fact that these homes typically depreciate in value (instead of historically appreciating like traditional properties).

Now, a few negatives – be sure to consider these carefully:

• Buying a manufactured home requires that you own or lease a piece of land to put it on, which can mean an additional expense on top of the mortgage payment for the house itself. You'll need to find a tract that falls within your price range. Needless to say, this can negate a large portion of the basic affordability of the home. (However, many lenders will finance both home and land together, making for one overall mortgage payment.)
• Although certainly sturdy and built much better than in years gone by, because of their very nature manufactured homes will probably never be quite as strong and durable as traditional dwellings. Given significant enough forces, they can be torn apart (but then again, in the face of a truly angry Mother Nature, so can any other structure).

It's important to keep in mind that, while manufactured homes can indeed be an affordable and energy-efficient alternative, you'll still have to go through the same process as if you were buying a traditional single-family home. If you won't be paying cash (which points to the vast majority of us), you'll need to acquire mortgage financing, which means credit reports, income checks and all the other incumbent necessities inherent in such a transaction. And, of course, credit is being squeezed and tightened now right along with the housing market, making buying more difficult for virtually everyone, regardless of the type of structure under consideration. Nevertheless, if you're thinking of home ownership, weighing the pros and cons of manufactured housing will help you decide if it's the right choice for you and your family.