As an expert in the real estate industry, I have seen the rise in popularity of manufactured homes over the years. These homes, also known as prefab or mobile homes, offer an affordable and often more flexible option for homebuyers. However, as with any major purchase, there are downsides to consider before making a decision. One of the main disadvantages of buying a manufactured home is its quick depreciation in value.
Similar to a new car, once a mobile home leaves the factory, its value drops rapidly. This is in contrast to traditional stick-built homes, which tend to appreciate in value over time. This is because the owner of a stick-built home typically owns the underlying land as well. On the other hand, prefab homes are often mass-produced in factories and then moved from one location to another, resulting in a lower price point.
Before diving into the world of prefab homes, it's important to understand both the advantages and disadvantages, as well as potential additional costs and financing options. The term "mobile home" was adopted after World War II when these homes became a popular and affordable option for many families. However, if you plan on placing your prefab home on your own land, be sure to check with your local government about zoning restrictions for these types of homes. Despite their drawbacks, prefab homes still offer an affordable option for many families.
In recent decades, improvements in quality and safety have made them an even more attractive choice. However, if you choose to live in a prefab community, you will likely have to pay rent for land use as well as fees for shared amenities, services, and utilities. Prefab homes are built in accordance with building codes established by the United States government. This means that they must meet certain standards for safety and quality.
Additionally, there are mortgage loan options available for prefab homes, such as FHA loans for manufactured homes. Freddie Mac also offers conventional loans for prefab homes that are located on a permanent chassis, considered real property, and have at least 400 square feet of living space. While prefab homes may not hold the same value as traditional homes, they do tend to hold their value better than other assets, such as vehicles. Affordability is just one of the advantages to consider when weighing the pros and cons of prefab homes.
Before making a decision, it's important to address some frequently asked questions that you may have about these types of homes. You can find existing prefab homes through real estate agents, on general real estate ad websites, and in online prefab home markets. However, it's worth noting that after the approval of a law in the 1970s, these homes were renamed "prefab houses" instead of "mobile homes.".
