Manufactured homes are a great option for homebuyers, as they offer all of the features of a site-built home at a lower cost. However, there are a lot of misconceptions about manufactured home ownership regarding things like financing and long-term home value. Knowing the difference between real property and personal property is important for understanding what type of financing you’ll be able to receive on your new home. Continue reading to learn the truth about financing, home value, and other important considerations to think about when purchasing a manufactured home.
Understanding Real Property vs. Personal Property
So, what is the difference between real property and personal property? When you own the land your home is located on, you can convert your manufactured home to real property. You can also get a land/home package if you are financing your new home. Note that real property is subject to property taxes. If you lease the land, your home is considered person property. With person property you do not pay real estate taxes, rather a yearly fee to the Department of Motor Vehicles.
Financing for Manufactured Homes
A manufactured home can be financed just like a regular home. As with any mortgage, buyers typically mortgage a manufactured home for 15 or 30 years. It’s important to explore options and find a loan that best fits your needs and budget.
Home Value Considerations: Appreciation vs. Depreciation
One myth surrounding manufactured home ownership is that they quickly depreciate in value, and therefore traditional home buying or renting is better. This myth has been perpetrated because mobile and manufactured homes are often associated with lower quality materials and quick deterioration. However, today’s manufactured homes are constructed with quality materials and are designed to be even sturdier than most site-built homes.
Just like a standard site-built home, the value of a manufactured or modular home depends on things like the housing market, age of the home, upkeep, and location. In most places, the value of manufactured homes paces consistently with site-built homes.
Find Your Next Home with Jacobsen Homes
Don’t let the common misconceptions about financing or home value stand in the way of finding your dream manufactured home. With Jacobsen Homes, when you purchase a home in one of our beautiful communities in Florida, your new home will be permanently placed, allowing you to reap all the financing benefits of real property.
Ready to own your new home? Contact Jacobsen Homes today.