Are you or a loved one considering buying a mobile home for the first time? Being a mobile homeowner is a great opportunity. It has the benefit of being an affordable option in comparison to a traditional stationary home. Even if you are considering being an owner of a stationary home in the future, mobile homeownership is a great option along your mobile home journey.

If this is you, then you have a lot of things to consider like what you can afford and what payment options are possible. We’re here to walk you through what a financial agreement for owning a mobile home might look like.

Facts About Buying

So if you’re not familiar with how mobile home ownership works, there are a few pieces of information to go over. 

First, of course, we’re talking about mobile homeownership but renting a mobile home is an option that’s very similar to renting a stationary home.

But when it comes to mobile home ownership there is one major difference that needs to be considered, and that is whether you will be renting or buying the land or property that the mobile home is on. Because mobile homes can be picked up and moved, buying and owning them can be different than with a stationary home. You will want to pay attention and consider that there are different financing options that depend on this fact.

If you plan on purchasing a mobile home that is in a mobile home park, then you will need to pay attention to what type of park it is. For example, with a “Rental Park,” you could own the mobile home but have to pay a monthly rental cost for your home’s land. Even with a “Land Owned Park”, where you own the home and the land, there is a good chance that ownership will come with a monthly HOA (Home Owners Association) fee to cover amenities and services that the park provides.

Mobile Home Classification

Again, when it comes to purchasing the mobile home there are two different possibilities depending on whether or not you are purchasing the land. 

If you are purchasing the land then the purchase will be treated as a traditional purchase of a stationary home. This would include the transfer of a deed for the property and everything else involved with purchasing a home. 

If you are purchasing just the mobile home, and renting the land, then the sale of the home would actually be treated as personal property similarly to buying a car. 

Financing Agreement Options

Of the two options above, purchasing a mobile home along with the land will be more expensive because you are paying for ownership of the property as well. Even though this is more expensive it may be a better solution in the long run. When purchasing the total property, the sale will again be treated like a stationary home and you will have better options for financing the property, like obtaining a mortgage loan from a local bank or lender.

If you are not purchasing the total property, but just the home, then you may have more difficulty when it comes to securing a mortgage loan. If you are in this position then there are still options. The person selling the mobile home would likely be willing to agree to what is called a “seller-financed loan”. This is where a bill of sale of the mobile home would be treated similarly to a car, but you would come to an agreement with the seller.

As you work through these options for financing a mobile home we would recommend speaking more in-depth with a real estate professional or financial advisor who has experience in dealing with mobile home purchases. 

See some more specific samples here: https://www.sapling.com/7820542/tips-mobile-home-owner-financing

About Dan Leighton

Dan Leighton has been working in the mobile home industry for over a decade. His focus has been on sales and customer relations - making sure each person in the transaction is comfortable and fully transparent. He has a wife and one son. Dan continues to look for innovative ways to help both sellers and parks get the most bang for their buck.