Mortgage Handbook

Mobile Home Mortgages

Borrowing money to purchase a mobile home can be a good first step for low-income homebuyers on the road to property ownership.

Mobile homes generally cost a lot less than other houses, and provide a roof over one’s head, as well as a way to build some equity.

It is important to remember, however, that their investment potential is lower in the long run, as mobile homes don’t necessarily come with any land, and are generally subject to some kind of pad rental fee. They can also be quick-to-deteriorate when not properly maintained.

For these reasons, it is important to do some calculations before buying a mobile home, so as to ensure that the cost of pad rend and mortgage interest won’t exceed what you are already paying on rent. It’s also a good idea to factor in the current state of the real estate market in your area, as mobile homes are influenced by property prices in much the same way as other residential properties.