Closing on a mobile home involves several steps that differ from traditional home purchases. The mobile home closing process requires attention to specific details related to the unique nature of mobile homes. Many buyers and sellers are curious about how long it takes to close on a mobile home or how to sell your mobile home.
Understanding these steps can help you confidently navigate the journey, ensuring you feel prepared for each stage while maximizing your home value.
Pre-Approval and Loan Application
Securing pre-approval for financing is a fundamental step when purchasing a mobile home. Unlike traditional home loans, financing for mobile homes often involves additional considerations due to the nature of the property.
You will submit documentation such as income verification and a detailed credit history during this stage. Lenders evaluate these factors to determine the terms of your loan. While this step may seem time-consuming, it establishes a realistic budget and sets the groundwork for the rest of the closing process.
Park Approval
If your mobile home is located in a park, obtaining approval from park management is vital. Most parks require buyers to meet specific criteria, including a credit check and agreement to the park’s rules and regulations.
This step ensures that the buyer can legally occupy the home within the community. Completing this stage early in the process can prevent unexpected delays later.
Drafting the Purchase Agreement
The purchase agreement outlines the terms of the sale and serves as a legal foundation for the transaction. This agreement includes specific details for mobile homes such as the purchase price, home condition, and any agreed-upon repairs.
Drafting this document carefully is key to a smooth transition to the next steps in the process. Both parties commit to the terms at this stage, creating clarity for all involved.
Navigating the Escrow Process
Escrow serves as a neutral ground where funds and documents are held until all conditions of the sale are met. The escrow officer is crucial for mobile homes in ensuring compliance with state-specific requirements. These may include Department of Motor Vehicles (DMV) or Housing and Community Development (HCD) guidelines for title transfers.
During this phase, the buyer provides payment, and the seller submits the title to the escrow office. The process helps protect both parties while managing the administrative aspects of the sale.
Conducting a Title Search
A title search verifies clear ownership of the mobile home and checks for any existing liens or encumbrances. For buyers, this step prevents future legal disputes over ownership. Sellers benefit by addressing any title issues upfront, which helps maintain the timeline for closing.
The Final Walkthrough
Before finalizing the sale, a walkthrough ensures that the home is in the agreed-upon condition. This step is particularly important when repairs or upgrades are part of the purchase agreement.
Buyers should inspect everything, from structural elements to utilities, to confirm the home is ready for move-in. Taking the time to review the home now avoids complications after the sale is complete.
Closing Day Details
All parties sign the necessary documents on closing day to finalize the transaction. This includes items like the mortgage note and disclosures related to loan terms. Buyers should come prepared with valid identification and funds to cover closing costs.
These costs typically range from 5-10% of the home’s purchase price and may include fees for title services, appraisal, and manufactured home insurance. Once documents are signed, the title transfer is officially completed, and ownership changes hands.
After the Closing
Once the documents are reviewed and approved, buyers receive the keys or arrange delivery if the mobile home is being relocated. For sellers, this marks the conclusion of the sale. Buyers often use this time to finalize insurance coverage and make any adjustments for their new living situation.
Avoiding Common Pitfalls
The mobile home closing process can present unique challenges, but many common issues can be avoided with proper preparation. Sellers should confirm that all required documentation, such as the title and park approval (if applicable), is accurate and current.
On the other hand, buyers should maintain financial stability throughout the process by avoiding major purchases or employment changes, as these can impact loan approvals.
Clear communication between all parties ensures that misunderstandings do not delay the transaction. Taking these precautions helps both buyers and sellers achieve a seamless closing experience.
A Smooth Closing Starts with Us
Selling or purchasing a mobile home does not have to feel overwhelming. Whether you are wondering how long it takes to close on a mobile home or how to sell your mobile home for its true value, a clear understanding of the steps involved can make a significant difference.
We make the process straightforward at US Mobile Home Pros by offering unparalleled expertise and nationwide service. With years of experience and a commitment to helping sellers, we ensure fast, fair, and professional service for your mobile home needs.
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There are three standard sizes of manufactured homes: Single, double, and triple-wide.
Single-Wides
Single-wide mobile homes are 10-16 ft wide and 42-90 ft long, with 600-1300 sq ft of living space. They are called “single”-wides because they can be towed as a single unit.
A regular single-wide comes with:
- 2 Bedrooms
- 1 bathroom
- 1 living room
- And an eat-in kitchen
Despite its size, they are still highly customizable. For instance, some higher-end single-wide units will have a second toilet, and others would forego the 2nd bedroom for a bigger living space.
Of the three sizes, single-wides are the hardest to finance since they are the lowest in overall value and tend to depreciate faster.
Cost:
- New: Around $40,000 and up
- Used: Around $10,000 and up
Double-Wides
Double-wide mobile homes are twice as big as single-wide homes and are the most common type purchased. The dimensions of double-wides usually fall within 20-42 ft. in width and 42-90 ft. in length, resulting in up to 2000 square ft. of space. They are towed to the site in two separate sections before assembly.
Double-wides also allow for much more flexibility when it comes to room layouts. However, the typical room allotment is:
- 3 Bedrooms
- 2 to 3 bathrooms (an ensuite for the primary bedroom and one or two additional bathrooms shared by the other rooms)
- Two or three of the following:
- Dining room
- Kitchen
- Living room
- Washing room
Cost
- New: Around $75,00 and up
- Used: Around $20,000 and up
Triple Or Multi-Wides
Triple-wides are around 50 ft. in length but the width varies greatly and the living space is usually below 4500 square ft. Also known as multi-wides, this variant is pretty rare to find. The average rooms are available in a typical triple-wide and come with flexible design options.
Manufactured homes can offer anywhere from 3 to 5 bedrooms and 3 to 4 bathrooms. This is along with a variety of layouts for the kitchen, dining area, living room, laundry room, and foyer. A new home typically costs between $100,000 and $250,000. A used home starts at around $50,000, depending on its features and condition.
Asking Price Comparison Reports
If you’re in the market to purchase a mobile home and are unsure how to know if the value matches the asking price, we suggest getting an Asking Price Comparison Report.
By giving us a bit of information about a home, we’ll match it up with thousands of homes currently on the market and give you the average price range, as well as the highs and lows. This allows you to confidently purchase a home, knowing you’re not paying outside of market standards.
With this report, you’ll get:
- Lifetime: You’ll never need to purchase another report
- Live Data: We update your report in live time, as new homes go on the market
- Printable: Print a PDF of your report for flyers or open houses
- Sharable via Web Link: Post the link with other web listings you have so buyers can see your report
- Visualized via Graphics: Easy-to-understand bar graphs to visualize the data
A price comparison report is the best way to know if a home’s asking price is within current market standards.
Cost of Moving a Mobile Home
Moving a mobile home puts it at risk of damage, can impact its value, and lowers the chances of financing.
In fact, it is practically impossible to finance a home that has been moved two or more times, mostly due to the fact that lenders feel the foundation of the home can no longer be trusted.
At the same time, there may be cases where moving a mobile home can not be avoided. It’s better to be armed with the knowledge of how much it costs when the situation arises. For instance, when you have to sell a mobile home but plan on keeping the land, try to sell it locally. Moving it within the same vicinity drastically cuts the cost and risks involved.
Cost
When it comes to transportation costs, a good rule of thumb in estimating is somewhere between $1 and $5 per mile.
- Short distance haul: $1000-$5000
- Long-distance haul: $10,000 and up to $25,000
- Disconnecting utilities and preparing the home: Up to $1,000
For more information read the article: What is the Cost of Moving A Manufactured Home?
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Finance Options
Keeping the factors that could affect eligibility in mind, let’s look at some of the most common financing options so that you know what could apply to you.
Conventional Loan
Conventional loans such as Fannie Mae or Freddie Mac have programs that specifically cater to manufactured units. Strict criteria for your home to be eligible include having a good credit score and collateral.
On average, these types of loans come with a high downpayment of 5-20%, high interest rates of 5%, and terms that last 20-30 years.
Chattel Loan
This is one of the most widely known and proven ways to get financing for a mobile home because they do not require you to own the land the home is on. This is designed to finance expensive vehicles, which manufactured homes can qualify for.
The challenge with a chattel loan is the very high interest rates and shorter-term offers. If your credit score is in good standing, you could get an interest rate lower than 10%; otherwise, expect it to be in the 13% range. The terms are usually limited to 20 years and a minimum down payment of 5% is required.
FHA Loans
The FHA (or Federal Housing Administration) loans come in Title I and Title II programs. The FHA takes some of the risk themselves when they hand you a mortgage or loan. If you fail to make your payments or default, the FHA will pay part of the remaining amount.
Just like a chattel loan, whether or not you own the land is unimportant. Unlike chattel loans, the loan is fixed for the full mortgage term, and the borrower must have the option to lease the plot under the home for at least three years. They do consider your credit score and how likely you are to meet your payments. Moreover, the home must meet HUD standards. There’s also a limit to the loan amount. For example:
- For a Mobile Home only: $69,678
- For the Lot only: $23,226
- For the Home + Lot: $92,904
The term is usually 15-25 years, the interest can be as low as under 5%, and the same goes for the down payment.
VA Loans
The Department of Veteran Affairs insures this loan; as its name suggests, only veterans are eligible. You will need to present proof that you served in the military to qualify. These are very similar to FHA loans in that the Department of Veteran Affairs takes up some of the risk themselves, and these loans do not require you to own the land.
A minimum of 5% of the loan’s total amount is required up front and the interest rates are just over 3.5% while the terms are between 15 and 30 years.
Other Costs When Buying or Selling a Home
- Building a foundation: Every home needs a foundation, even a mobile one. Although it depends on the type of home, plot, and foundation it usually costs anywhere between $10,000-$15,000.
- Utilities: Removing or hooking up utilities will cost around $1,000
- Lot rent: If the home is in a park. Lot rent varies a lot according to the park and the state. However, it tends to be much lower than the rental of an apartment or home. You should be looking at anywhere from $300 to $800.
We hope this guide to mobile home prices has been a light for you in the murky, foggy waters of trying to figure out the cost of a mobile home. We’ve pulled all the information into one place, so you can make the best-informed decision whether you are buying or selling your home.
