Mobile Home Loans

Today mobile homes are the rage. People are buying many of them. You can buy them as a first home, rental investment, and for retirement. With the advantages of mobile homes- quick construction and cheap price, come some disadvantages.

One big issue is depreciation. You might spend $20,000 on a mobile home that you can only sell for $16,000. There is a solution for this though. If you own the land on which the mobile home sits, it will appreciate like a traditional home. My first mobile home cost me $20,000 with the land. 15 years later, I sold it for $45,000.

There are some other cautions when buying mobile homes, specially used ones. Aluminium wiring in used homes can cause sparking within walls. When buying such homes, reduce the cost of new wiring when making the offer.

Another problem is financing old mobile homes. It may be available only at a very high interest rate. In addition when you are selling the mobile home, it might be difficult for the buyer to get financing. Another issue when buying and selling mobile homes is getting insurance.

Check for stains on ceilings which mean roof leaks. Dry cielings after recent rains mean repaired leaks (good). Sagging roofs may mean rotten wood.

Also see if the floors are spongy. These problems are common in toilet areas. The toilet should be level and not leaning.

The silver lining in buying used mobile homes is that generally problems can be resolved much cheaper than in the traditional houses. Although there may be a few problems buying mobile homes, these are more than offset by the advantages.