“Alternative housing” is all the rage right now. First came converted missile silos, then shipping containers, now minimalist “tiny homes.”
An affordable alternative that has been around for decades, is manufactured housing. Assembly lines are used to make your cars and electronic devices, why not your house too?
As the supply of homes under $200K is limited, manufactured homes are an important affordable option for borrowers – particularly in rural areas. According to the Consumer Financial Protection Bureau (CFPB) over one-third of residences in southern and western US are manufactured housing.
The US Census Bureau notes that the average price of a manufactured home is $71,300, versus $353,600 for a site-built home. Additionally appealing are the finance opportunities, including down payments as low as 5% and “equity contributions” for the value of the land you’re putting the manufactured home on.
The misnomer “mobile home” is affiliated with the industry, when the majority of manufactured homes are not moved once installed. Per a report by the Corporation for Enterprise Development (CFED), the process of building a manufactured home produces 30-45% less waste versus a site-built home.
Ask your realtor or speak with a local lender about the options for buying a manufactured home in your area today. CFED provides this great “10 Truths” resource to get you started.