What are the pros and cons of buying a Mobile Home?

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I’m currently paying $ 900.00 per month renting an apartment. I was looking into buying a home but the price of 450k – 500k is out of my league. Im looking at a nice Mobile Home built in 2005 for 175K. The only downside is that I would have to be paying rent on the space on top of the loan as long as I live there. Any info would be greatly appreciated.

4 Comments
  1. Reply
    Johnny A
    November 10, 2011 at 7:08 am

    pros: Preferred parking at Walmart
    Cons: You are labled trailer park trash

  2. Reply
    Vakari
    November 10, 2011 at 7:53 am

    It would be smarter to purchase a piece of land and put a mobile home on it rather than renting space in a mobile home park. The reason being is that mobile homes do not appreciate in value like a traditional home would. If you have a piece of land, it will go up in value, and give you equity to borrow against if need be.

  3. Reply
    thinking-guru
    November 10, 2011 at 8:27 am

    There is one big “con” to owning a mobile home: they depreciate in value. All lenders will want you to own the land beneath the trailer so renting the lot is not acceptable. You could find a loan on just the mobile home but I am certain your rates will be in the double digits…maybe even 12-14%. If you own the land the rate will drop to around 9%.

    BTW: $ 175K for a mobile home? No land? Are you kidding me? It better be a triple wide with gold fixtures, built on a full basement with a new in-ground pool next to it and they may as well throw a new car in the transaction. That sounds waaaaaaay out of line to me.

  4. Reply
    bestquestions
    November 10, 2011 at 8:44 am

    The pros are that you own the mobile home. You have an asset (although it’s a depreciating asset if it’s in a park). You can move to another park and not have to change homes.

    The cons are that you own the mobile home. What I mean is when you rent an apartment, something goes wrong the landlord is there to fix it. If you own a mobile home in a park and something goes wrong, it’s all you!

    If you’re seriously looking at mobile homes in the 175k range, maybe you should consider a lesser amount and try to purchase some land.

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