4 Ways to Get Out of the Rent Cycle and into Manufactured Homeownership
With the homeownership rate at 64%, clearly Americans value having a stake in where they live. The U.S.A. is the only country in the world where a majority of its citizens can experience the benefits of homeownership.
However, there are major issues across the country due to a lack of quality affordable traditional site-built single-family housing. The reality is that the current housing supply cannot meet the demand for affordable homeownership.
As home prices continue to rise, making it most difficult for low and moderate-income Americans from having a stake in where they live, keeping them renters rather than homeowners.
Almost one-third of all households are considered cost-burdened, putting over 30% of their income toward housing costs. Escalating rental rate cycles have resulted in many potential home buyers being shut out of the site-built housing market and further limiting the ability to set aside discretionary funds (savings) available towards purchasing a home.
Manufactured housing can help millions of families own homes that are “everything a home should be,” including high quality, affordability, safety appearance and easily attainable.
The following are 4 suggested ways to get out of the rent cycle and into manufactured homeownership.
- Shape up your credit
Like your SAT or your batting average, your credit score is a number you’re either proud or something you won’t be bragging about at Thanksgiving dinner. Typically you will need to have a 580 credit score. So paying down credit card debt and keeping a low debt-to-income ratio is crucial.
- Save for down payment
“The best advice for future homebuyers is to start saving as early as possible. If you consistently set aside a part of your paycheck, you can build a down payment that will be there when you are ready to buy a home,” says Judith Coprew, Executive Vice-President at Patriot Bank.
The amount of down payment required when purchasing a new manufactured home will be based upon the purchase price of the home. A manufactured home will be equal, and often superior, in every respect as a traditional site-built home and will have a cost up to 50% less. An average down payment will be typically 10% to 20% of the total sales price, about one-half the amount required for a comparably sized site- built.
- Explore home placement sites
Early in the preparation to become a manufactured homeowner you will need to explore locations where you would locate your new home. The following manufactured home placement statistics indicate preferences by previous manufactured home purchasers.
- 65% of manufactured home residents who own their home also own the land it is sited on. However, 65% of those homes are financed as “home only,” not including the land.
- Historically, 25-30% of owned manufactured homes have been placed within manufactured home/mobile home land lease communities.
- Discover the ideal home to match needs and wants
Purchasing a home is one of the most rewarding and important decisions any of us will make in our lifetime. Preparing in advance of that purchase can be an enjoyable experience as you seek the ideal home that meets all your visions of what a home should be. That path to discovering your dream home starts here.
Here at ManufacturedHomes.com, we are the nation’s largest information source for “everything manufactured housing has to offer,” including the latest design and decors displayed within actual furnished model homes. You are invited to explore 1,000’s of floor plans, models, construction specifications and a large library of unique 3D Virtual Tours with over 10.3 million views. Enter your location on the home page search bar to explore a wide selection of homes available near you. Find a home (or homes) you love and request a no-obligation Custom Price Request, all from the privacy and comfort of home.
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