How to Buy a Mobile Home & Land
Buying a mobile home and land requires determining if the home and property are considered personal or real property. A mobile home permanently attached to the property is considered real property. Whereas, a mobile home with a Certificate of Title --like a car title-- is considered personal property.
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Contract
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Whether you are buying a mobile home already set-up or a mobile home ready to move to land, you should prepare a contract. The contract provides the terms of the sale, including the buyer(s), seller(s), price, description and financing contingencies. A separate contact may be created for both the home and the land if there are two different owners.
Financing
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A mobile home with land attached is generally considered real property, meaning it is treated as a house; rather than as personal property. Therefore, several financing options are available, just like for a house. Mortgage brokers have access to several lenders, increasing your chances of approval. However, banks offer in-house financing, meaning they can approve your loan without an outside underwriter reviewing it.
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Down Payment
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If a mobile home is attached to the land, a down payment of five to 10 percent is generally required. The down payment may be cash or other collateral owned by the buyer, such as personal property like an automobile.
Survey
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Buying a mobile home with land often requires an up-to-date survey, according to CNN Money. If the seller does not have a survey that is current, generally done within one year, a new survey must be completed. The survey shows where the home sits or will sit on the property and the property lines, helping to avoid controversy in the future.
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References
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- Photo Credit mobiles home 2 image by Marc Rigaud from Fotolia.com
