Buying a mobile home in RI

By
Real Estate Sales Representative with Adams Realty

So, you want to buy a mobile home in Rhode Island?

People often think this is the most affordable way to buy in RI.  If you can pay cash, you often pay much less than you would renting.  There are several issues to think about.  First of all, there is financing. 

  If you don't have the ability to pay cash, you will need to find a way to finance. 

 You can't just go to any bank and get your garden variety pre-approval for this.  Unless the unit is on it's own land, you will have to go to one of only a handful of lenders that will be willing to finance one on leased land.  For anyone interested, I have compiled a list of these, contact me.  The rate is usually about 2-4% higher than the current rate on mortgages.  The finance companies are usually more strict with credit, as well.  They require 10-20% down and will finance for about 20 years but that depends on the age of the unit.  For the most part a mobile home built earlier than 1976 cannot get financing, but some lenders will approve them if the unit has had substantial updating.

Insurance is fairly easy to get on them, for some reason people think that would be the difficult part, it is not.

Inspections are the same as with any other home, and the price for those is the same, too. 

The park restrictions are probably the most important consideration.  Many parks do not allow motorcycles,

 dogs or renters.  Some have age restrictions which could mean no children or no residents under 55.  Typically the age restricted parks will make exceptions for handicapped individuals.  There can also be credit score and income requirements.  Even when paying cash some may require a substantial monthly income to get a lease with the park which can be an issue for those getting Social Security or Disability payments.

So is it more affordable than a typical single family purchase?  Let's look at the numbers:

Let's take a Coventry starter home with 2 beds:   $144900 purchase price 3% down with a 30 year fixed at 5.68%, taxes of $2276/yr., fire tax of $188/yr., payment for taxes & mortgage would be $1019.32 a month.

Now a 2 bed mobile home in a leased land park I am using numbers from a park that allows children:  $62211 purchase price 10% down with a 20 year fixed at 9%, taxes of $529/yr., fire tax of $123/yr., park fee of $368/mo., payment for taxes, mortgage and park fee would be $926.09 a month.

Not as much of a savings as most people think.  Obviously, there a a vast number of scenarios out there, some may come out much differently.  But I think it's always a good idea to do all the numbers to make and informed decision.

 

 

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Anonymous
Anonymous
LOUISE GREENWOOD

SOUNDS INTERESTING......

IF YOU HAVE TO PAY RENT FOR THE LAND WHAT DO YOU HAVE TO DO TO CLOSE?? BECAUSE IT IS NOT REAL ESTATE, ITS BASICALLY A VEHICLE, A TRAILER.

DO YOU GET A BILL OF SALE ONLY OR DO YOU GET A CERTIFICATE OF TITLE LIKE A VEHICLE????

DO YOU NEED A LAWYER TO CLOSE ??

DO YOU HAVE TO REGISTER IT AT THE REGISRTY OF DEEDS ??

SOMEONE  TOLD ME YOU HAVE TO DO A UCC SEARCH, WHAT IS THIS??

WE LIVE IN FLORIDA AND LOOKING IN RHODE ISLAND AND CANT MAKE UP OUR MIND, RESIDENCE OR MOBILE HOME 

THANKS FOR THE INFO

 

 

 

Mar 12, 2008 03:39 PM #1
Rainer
7,376
Alayna Berek
Adams Realty - Hope, RI

There is a closing with an attorney just as with any other property.  The attorney records the bill of sale instead of a deed at the town hall. 

UCC filings are public records.  The attorney will take care of all of that.

Mar 13, 2008 09:29 PM #2
Anonymous
Anonymous
Anonymous

I purchased a mobile home (manufactured home they call them now) in 1988 in a park in Coventry.  The land rent back in 1988 was $125.00 per month.  I paid $53,000 for the home which at the time was a monthly mortgage of $478.00.  The home is now paid for but the land rent has climbed to $383.00 per month and there are also fees for water, Land Taxes even though you don't own the land and personal property taxes.  You also get a fire tax and you must have insurance if the property is not paid for. The home is poorly made and besides the roof always leaking (even though it was replaced) and the floor buckling up from getting wet, the floor in the bedroom sprung a hole just from the foot of the bed and of course the windows melt from the sun and water leaks in.  Let's just say I'm not enjoying my apartment in Warwick and if I was to make another purchase it would be a house.  At least if a hurricane strikes, the police aren't at your door telling you to get out.  That brings up another point,  if the wind reaches 50 the house shakes!!!

Sep 17, 2008 02:14 PM #3
Rainmaker
69,391
Mobile Austin Notary
Apostille/Authentication/Embassy Legalization, Notary Public, Loan Signing Agent & Process Server Services - Austin, TX
www.mobileaustinnotary.com

Thanks for the interesting information.Butterfly

Dec 06, 2008 10:50 AM #4
Rainmaker
338,886
John DL Arendsen
ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Dealer & Developer & TAG Real Estate Sales & Inves... - Leucadia, CA
Contractor, RE Brk, Factory Built Home Dealer/Devl

Hi Alayna,

I'm way late for this one but it just popped up on my radar so here goes anyway. 

Today's "Manufactured" "Factory Built" Home is constructed exactly like any Site-Buit (Stick Built) Home. In most cases even better inasmuch as they are built in a indoor climatically controlled environment and inspected by a liecensed HUD inspector through every phase of construction. 

As a RE Broker, Manufactured Home Dealer, General Contractor and Manufactured Home Contractor in California, Arizona, Oregon and Florida for the past 25 years I can assure you that having built equally as many site built projects as I have Manufactured Home projects that I would select a manufactured home any day. 

 

As for financing? There are plenty of lenders out there willing to finance MH's if they meet the following requriements. http://activerain.com/blogs/johnarendsen

Please feel free to log onto our Truliahttp://www.trulia.com/blog/onthelevelcontractors/ or Active Rain bloghttp://activerain.com/blogs/johnarendsen for more comprehensive information about the MH Industry. 

Or you can check our our website and give us a call or drop us an email. We are RE Brokers, Manufactured Home Dealers and licensed, bonded and insured General Contractors and have been actively engaged in the MH Industry statewide for almost 3 decades. 

We also do "Lonnie Deals" 
Web Reference: http://www.onthelevelcontractors.com


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Mar 02, 2011 12:24 PM #5
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Alayna Berek

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