Manufactured homes are factory-built homes that, upon delivery, are assembled at your chosen site. Different from modular homes, manufactured homes have many benefits: they are customizable, energy-efficient, and affordable, to name a few.
With housing interest rates and costs on the rise and fear of an impending economic recession, the barrier to entry for many first-time homebuyers is getting more challenging to overcome. While this poses unique challenges, manufactured homes’ affordability can weaken this barrier for those looking to become homeowners during this time.
Let’s explore how.
What Makes Buying a Manufactured Home Cost-Effective?
Manufactured homes are known for their budget-friendly price points compared to site-built homes. But why?
Affordable Building Materials
Manufacturers are able to buy high-quality building materials in bulk, which can contribute to their lower overall costs. In addition, manufactured homes are federally required to be built in a climate-controlled environment by the U.S. Department of Housing and Urban Development (HUD). This helps prevent building materials from getting stolen, vandalized, or damaged, which would require new materials to be purchased.
Efficient Building Processes
Because these homes are factory-built, they follow an assembly line building process, which enables builders to gain efficiencies and keep overall labor costs down. In addition, their drafting and planning processes ensure that all materials are measured precisely before construction to lower waste – and any leftover materials and scraps can be reused or repurposed.
More Space and Upgraded Features, for Less
A manufactured home’s more affordable price gives you more wiggle room in your budget, and since they are customizable, it’s easy to get more square footage or upgrade to luxury features. Plus, you can even tailor your home’s layout to your lifestyle – from open floor plans to walk-in closets to wrap-around porches, and more – the options are endless.
You Still Qualify for a Federal Housing Administration (FHA) Loan
As a first-time homebuyer, you can still use an FHA loan to finance your manufactured home – whether it’s in a manufactured home community where you own the lot (not deeded, shares, or rented lots), or on your personal privately-owned land. Since manufactured homes are more affordable than site-built homes, this already makes for a lower overall housing cost, which in turn, directly impacts how much your initial down payment and monthly mortgage payments are.
Fear Not – You Still Get Quality Where It Counts
Many people assume that manufactured homes are more affordable than site-built because they are poorly made – however, quite the opposite is true. Manufactured homes are just as safe as traditional, site-built homes, and must adhere to federal building codes set forth by the HUD. With a manufactured home, you can have peace of mind knowing that your home is structurally sound and built to last, without breaking the bank.
Manufactured homes clearly have many benefits for first-time and seasoned homebuyers, making them a great investment. Contact us today to get started building yours.