3 Things to Consider When Selling Your Mobile Home
Have a mobile or manufactured home in Florida that you are considering selling? Many assume selling a manufactured home is like selling a traditional home, but there are some key differences you should be aware of before you decide how you want to sell your mobile home.
First, and you’ll understand why this distinction is important a little later, a mobile home technically refers to any mobile-type home built in 1975 or before while manufactured home refers to a mobile-type home built in 1976 or later. Many use the moniker interchangeably, but lenders and insurers will view this as a defining characteristic.
It’s hard to get a loan on a mobile home
Just like traditional homes, lenders look at a number of factors when deciding to loan on a mobile home; however, these restrictions tend to be far more strict for potential buyers intending to purchase manufactured homes.
Some conventional loan products exist for mobile and manufactured homes, but a majority will only finance “manufactured homes” built after 1976. This includes FHA, a federal loan which is popular with first time home buyers due to flexible credit requirements and low down payments. If your home is a true mobile home, you may have difficulty with buyers managing to find financing. Additionally, virtually all of these loan products require land to be sold with the mobile home, making it “real estate”, so if you are looking to sell without land as “chattel” you will have even more difficulty.
It is possible when selling your home to offer seller financing, in which you personally finance the mobile home buyer’s transaction. They pay you as the mortgagee as if you were their lending institution. This is difficult for many mobile home owners as you will only be able to offer this type of financing if you own the home free and clear of any mortgages and don’t need the cash from the sale up-front.
They are normally titled like motor vehicles
The land your mobile home sits on is treated like normal real estate and is transferred via a deed. However, the mobile or modular home itself has a motor vehicle title through your state’s Department of Motor Vehicles. In cases of double wide mobile or modular homes, you will have one title per side.
Ensuring that your mobile or manufactured home is titled in your name and free and clear of liens is instrumental in ensuring a hassle free sale.
In the event that you can’t locate your mobile home title, you will need to contact your state office or a mobile home title agency to assist you in obtaining it for the transfer to the buyer.
They can be difficult to insure
Mobile homes, again those built prior to 1976 are notoriously difficult to insure. The Department of Housing and Urban Development instituted building requirements in 1976 that all manufactured homes must adhere to for safety and structural integrity. As these requirements were not in place during the construction of mobile homes, insurers see a big risk when underwriting your policy.
They may require things such as new siding, a new roof, or for the home to be brought up to HUD code if possible, before insuring a mobile home, and typically at increased cost.
Even for those modular homes built after 1976, the cost to insure can be higher than a traditional affixed home. In states like Florida with the threat of hurricanes modular homes present a greater risk of loss than a traditional home and that reflects in the cost of insurance.
While the increased cost and difficulty of insuring your mobile home may not be of concern to you, it may be for the person or persons who are buying the manufactured home, making it more time consuming and difficult to sell.
The easy way to sell a mobile home in Florida
The easiest way to sell a mobile home is to find a company that pays cash for mobile homes, like Duval Home Buyers who buys mobile homes in Jacksonville and other parts of Florida. These cash buyers typically buy homes in any condition without commissions or fees, allowing you to sell your mobile home fast, regardless of the concerns above.
If you have a mobile home in Jacksonville or any other part of Florida Duval Home Buyers can buy your mobile home, and can provide a cash offer within 24 hours.
No matter what option you choose, ensure you know what to expect when it comes time to sell your mobile or modular home.