If you're a first-time mobile/manufactured Buyer, there are some very important differences in the buying process, compared to buying a 'stick-built' (single family, condo/townhouse) home, that you need to be aware of.  Below, we'll do our best to make the process as easy to understand as possible.  If you have any questions that aren't answered below, please feel free to call (707-360-5571) or email (lisamrook@aol.com).

Financing

First and foremost, contrary to popular belief, it is NOT difficult to find financing for mobile/manufactured homes!  You just need to know how to find the right lender for your particular situation.  Most stick-built lenders won't finance mobile/manufactured homes.  That's why it's so important to work with an agent who has extensive experience with mobile/manufactured homes, and who already has established relationships with the businesses who can help you achieve your home-buying dream.

Second thing that's important to know about financing mobile/manufactured homes....they finance like an automobile!  So the older the home, likely the minimum down payment required will be higher, and possibly the loan term will be shorter.  Typically, the newer-built the home is, the lower the minimum down payment will be - sometimes as low as only 5% - and the longer the term (number of years of the loan) will be - sometimes up to as many as 25 years!  (UPDATE....There is now a nation-wide lender who will finance any age home with as little as 5% down!)

Third thing....interest rates for mobile/manufactured loans are typically higher than for stick-built homes.  Interest rates vary by lender, and can also be affected by your credit score (740 and over gets the best rates), and the length of your loan.  Rates can be as low as 7.50%, or as  high as 11%+ with conventional lenders, and can run much higher if you need to use a 'hard money' lender.  But not to worry, when you're spending so much less to buy a mobile/manufactured home (than you would a stick-built home of similar beds/baths/square footage), your monthly payments will still be quite reasonable!

Fourth thing....most Sellers these days require that Buyers submitting an offer on their home include a loan pre-approval letter from a lender with the offer.  That's a very realistic thing for them to ask, as they're just trying to make sure, before they take their house off the market, that you have the ability to qualify for the loan.  If you don't already have loan pre-approval, please be sure to go to our "Preferred Service Providers" page, and apply online today!  The sooner we can get you pre-approved, the sooner we can go out shopping!

What to expect when applying for a loan:  Once you've completed and submitted the lender's online application, the next thing you'll want to do is collect the documentation the lender will require you to provide - copies of all applicant's driver's licenses and social security cards, pay stubs, 1099's/W-2, prior 2 years' tax returns, and last 2-3 months' of bank statements.  Once you've provided that documentation to the lender, don't put it away just yet, as you'll likely need it for the next step.....

Space Rent & Park Residency Application/Approval Process

When you buy a mobile/manufactured home, you're buying the home only, not the land underneath the home (unless you're buying a home in Valle Vista in Santa Rosa, where you do buy the land as well).  Because of that, you'll also have a monthly cost for space rent.  That's the fee the Park charges.  Typically the space rent includes only the land rental, but sometimes it can also include some basic utilities (like water, or sewer, or trash).  Each Park is different, in terms of which utilities are/aren't included in the base rent, so always be sure to ask.

Because you'll be renting the land, the Park will require you to apply for residency in the Park and for the land rental.  That application process is very much like any other property rental.  You'll need to fill out their application forms, and provide them with proof of identity (usually driver's licenses & social security card), proof of income (pay stubs and copies of prior tax returns and/or bank statements), and in some Parks, give your authorization for them to run a criminal background check.

Please be aware that most Parks have minimum qualifying criteria when it comes to income.  They typically like to see monthly household verifiable income in an amount equal to 3 times the monthly space rent (plus loan payment, if buying with a loan).  As an example, if the space rent is $600/month, and your monthly loan payment will be $500/month, then they'll want to see monthly household income be ($600+$500=$1,100 X 3 =) $3,300.

By law, the Park has something like 15 days to process your application and give you a decision, but oftentimes it'll only take about a week.  Some Parks will allow you to get 'pre-approved' before you write an offer on a home, other Parks will require that you already have an accepted offer on a home before you apply.  There usually isn't any fee required to apply, and if you can get Park pre-approval before you write your offer, your offer will be stronger than someone who hasn't already invested the time and effort into getting approved in advance.

Insurance

Not all insurance companies insure mobile/manufactured homes.  So, again, you need to work with an agent who knows which insurance carriers are appropriate for your situation, and who can guide you to someone who can help.  Please see our "Preferred Service Providers" page for links to insurance brokers.  For planning and budgeting purposes, it's safe to expect to spend around $1,100/year, depending on the levels of coverage and deductibles you choose.

Taxes

Mobile/manufactured homes not permanently attached to the ground via a foundation are considered 'personal property', and as such, the taxes you pay are a little different.  Except in rare occasions (i.e, older mobile homes, which are still on annual registration with the HCD), personal property taxes on mobile/manufactured homes are paid through the Sonoma County Tax Collector's office, and are based on the purchase price you pay.  Personal property tax rates are usually about 1.2% of the purchase price of your mobile/manufactured home per year.  So if your purchase price is $200,000, your annual personal property taxes would be about $2,400, which is divided over 2 payments of $1,200 each.  If the home you're purchasing is still on annual registration, that fee, paid to HCD will likely be less than $100/year.

HCD

Except in the case of a mobile/manufactured home permanently affixed to the land, mobile/manufactured homes are titled like automobiles.  There is a Certificate of Title (like your car's pink slip), which is held by you (if you paid cash for the home), or by your lender (if you financed your purchase).  The California DMV-equivalent for mobile/manufactured home titles is the Department of Housing & Community Development (HCD).  The escrow/title company will handle all the paperwork processing with the HCD to transfer title of the home from the Seller's name to yours.

Escrow & Title

The Title Company, once Escrow has been opened, will provide the Buyer & Seller with a Title Search from the HCD.  The Title Search provides information regarding the year/make/model/serial #/dimensions of the home, as well as the Registered Owner's information (hopefully that's your Seller) and whether there is a Legal Owner (the Seller's Lender, who will need to be paid off through escrow by the Seller).  Title will also make an inquiry to the Tax Collector's office to ascertain two things....1. the amount (if any) of back taxes due (that need to be collected/paid through escrow by the Seller), and 2.  the amount for the tax deposit (that need to be collected/paid through escrow by the Buyer).  The Title Company will also contact the Park for their 'demand', which will be an itemized list of fees to be collected through escrow from both the Seller (for space rent and/or utilities due up to escrow close) and Buyer (for space rent and/or utilities from escrow close forward).  Once Title receives all 'demands', they will provide both Buyer and Seller with their respective Estimated Settlement Statements which will indicate all debits & credits due, and what the net proceeds (in the case of Sellers) or net funds required (in the case of Buyers) will be.  Title also coordinates with the Buyer's and/or Seller's lenders to ensure liens are placed/released appropriately and all necessary paperwork is executed.  Lastly, Title handles all the paperwork processing with the HCD to transfer title of the home from the Seller's name to the Buyer's name, and collects and distributes all funds in escrow (from the Buyer's deposit, down payment, loan proceeds <or final funds deposit, in the case of an all-cash deal>) to the appropriate parties (Seller, Park, Lender, Tax Collector's office, Real Estate Agents,etc.).

Inspections

We always recommend Buyers have the home thoroughly inspected during their inspection contingency period (which begins AFTER your offer is accepted by the Seller).  We recommend both a Pest Inspection - which looks for any potential wood destroying organism, such as termites, beetles, fungus, dry rot, etc. - and also a Home Inspection - which looks at everything inside and outside the home - roof, plumbing, heating, air conditioning, electrical, built-in appliances, etc.  Pest inspections usually run about $250-$275, and Home inspections usually run about $450-$500.  Inspection fees are due at the time of the inspection.  Typically the Buyer pays for all inspections, unless they've negotiated with the Seller in the purchase agreement for the Seller to pay.  Sometimes Sellers will have already had a Pest Inspection performed before bringing the house on the market.  Always be sure to ask if the home you're considering already has had any inspections performed.

Contingency Periods

Once you're in contract, your purchase agreement with the Seller will allow you certain contingency periods - for doing your inspections/investigations, to get your loan approved (if applicable), to have an appraisal performed (if you're buying with a loan), to get Park approved, to secure Homeowner's Insurance and to review the Sellers' Disclosures.  Each of those contingencies have different timeframes, but most need to be released during the first 14-21 days or so of going into contract with the Seller.  If, during the contingency periods, you can't get approved for the loan, or the home doesn't appraise for the purchase amount, or you can't get Park approved, or your inspections identify something major (and you can't successfully negotiate with the Seller for repairs, price reduction, or credit), then you can cancel the contract and still get back your earnest money deposit.  That said, if you release all your contingencies, then decide to cancel, be aware that the terms of the purchase agreement are such that you'll need to forfeit your deposit to the Seller.

Maximum Occupancy Requirements & Park Pet and Occupancy Rules

The State of California has set maximum occupancy requirements for mobile/manufactured homes.  The maximum number of people allowed is 2 per bedroom, plus 1.  So if the home is a 2-bedroom, the maximum number of people allowed to live there would be (2 x 2=4 + 1 =) 5.  The maximum number for a 3-bedroom home would be 7.

Most Parks have rules regarding limitations on the size, number and types of pets allowed.  Please always be sure to check the Park Rules for whichever Parks you are considering to be sure your pets, if any, will be allowed.  All Parks also have rules requiring the home be owner occupied.  Rentals are rarely, if ever, allowed, and only under very special circumstances.  We're creating a library of Rules for as many of the Parks that we can.  Please feel free to check our Park Archives page, if you'd like to see the Rules for any specific Park.

Real Estate Agents

The truth is....not all Real Estate agents have experience with mobile/manufactured homes, nor do they have an established rapport with the lenders, insurers, Parks, title/escrow companies, etc. you need to ensure your transaction flows smoothly.  Buying a home will likely be the largest financial decision you'll make in your entire life.  Please don't entrust something so important to an agent who doesn't have a broad base of experience doing these types of transactions.  We have extensive experience, and we're here to help.  Please contact us today! 

Please refer us

If you've found this website to be helpful, we'd be most appreciative if you could "Like" us on Facebook (link to "Like" on our home page) and give us a great review on Yelp here or on Trulia here.  Please also feel free to refer us to your friends, family and co-workers.  Thanks so much!