For many prospective homebuyers, the choice is between mortgage and renting: The latter is seen as the only alternative to a 30-40 year loan, as the price for a down payment and monthly mortgage is too cost prohibitive for many. The primary downside of renting is that it is a complete money sink; you have no equity to work with after you’re done renting. Manufactured homes are a 3^rd option that aren’t as mainstream as the other two, yet they offer many of the same comforts as a traditional home with a monthly cost comparable to renting. The purchase price is considerably lower than a traditional home due to the construction taking place in a factory and transported to the final location, rather than being built on site with the same materials. Additionally, your manufactured home may appreciate, allowing you to sell your home to finance your next step as a homeowner.

The experience of living in a manufactured home comes down to two factors: The condition of the home, and the park you rent in.

For many manufactured homes built within the last few decades, they share a lot of qualities with individual apartments, but because of the lot structure of manufactured home parks, they don’t share walls and typically have dedicated carports and additional space. They’re made from the same materials as traditional homes and have apartment-like floorplans that maximize space in high-traffic areas. By keeping up with regular maintenance, your manufactured home can last as long as a traditional site-built home.

Not all manufactured home parks are the same, and your experience can vary depending on the management and neighbors in a park. The distinction between residents of a home park and tenants in an apartment complex is that, for the majority of manufactured home parks, you are required to own the home itself to rent in the park. In other words, the park only leases the land the home is on, not the structure itself. This means that residents in manufactured home parks are homeowners and must abide by management and regulations to continue renting, otherwise they would be forced to move their home or sell it. Compared to apartment complexes, manufactured home communities are comprised of homeowners that are concerned with protecting their investment, which incentivizes good conduct.

This post is for educational purposes only, no statements or prospects are guaranteed.