Think about a foreclosed home. What do you see? Probably a suburban house with a tiled roof and picket fence, a large “foreclosed” sign plastered across the door or in the front yard.
It’s something like that right?
Indeed, many foreclosed homes once belonged to individuals who simply couldn’t keep up with maintaining their expensive and luxurious homes.
However, these aren’t the only types of foreclosed homes on the market. Did you know that there are also smaller homes that have gone through foreclosure?
Lo and behold – some of the smallest houses to be found on the foreclosure market are …
I know what you’re thinking: “Eww, who would want to buy a mobile home?”
While it is true that mobile homes don’t exactly exude class, they can be a great option for those looking for:
- Their first home (especially if they don’t have lot’s of money to spare)
- A temporary home – either they’re trying to tide themselves over till they get more permanent accommodation, or they’re going on vacation etc.
In this article, I’ll talk about 6 great benefits of buying a foreclosed mobile home. Let’s get started!
1. Bargain basement prices
Mobile homes are already considerably cheaper than buying a typical suburban house. Factor in the fact that they’re on the foreclosure market and boom – you’ve got a dirt cheap home that you can move in to.
Some might argue that mobile homes don’t last as long as a normal house. Sure, normal houses last longer. But we’re talking about hundreds of years here. A good mobile home can last you decades with little maintenance.
If you’re starting out, it’s no wonder that a foreclosed mobile home could be an attractive option.
2. Barely any monthly maintenance costs
Mobile homes usually attract a much lower monthly cost.
For one, property taxes on mobile homes are negligible. Secondly, a mobile home is so small that utilities are much less.
Think about it, you’ve only got a small living room that doubles as your dining room and bedroom. Your heating bills, light usage etc. would all be way less than what you’d pay if you lived in a normal home.
Thirdly, even if you lived in a trailer park, it would be much lower than if you were renting an apartment!
Lastly, the lower the value of the home, the lower the overall cost of the mortgage. This in turn means that you pay a lower monthly payment.
3. Get accepted for a loan more easily
Have bad credit? Have no credit?
Another key benefit of getting a mobile home is that you’re far more likely to be approved for a home loan. The difference here is that the loan is much smaller in size.
If you’re able to put in a down payment, then an even greater load is taken off the lender’s shoulders. This can make it much easier for you to get a loan.
As always, leverage off the first time buyer benefits that the government offers (if you’re a first time home owner.)
4. It’s a Good Starter Home
If you’re starting to invest in property, I’d advise that you don’t look at first purchase as your “final family home”. That is to say, don’t get caught up in getting the perfect house. You’re not going to raise your kids and grandkids there.
Know that the home will be rented out or sold for income. That way, you won’t go for home that’s out of your budget. Can you imagine getting a luxurious house, but where you can’t keep up with the mortgage payments?
Your first home should be affordable, and should offer you some upside potential. Mobile homes fit the bill perfectly here.
They’re easily movable, which makes them more sellable. They also provide rental opportunities.
5. Get in touch with the Community
While not everyone’s cup of tea, the more communal-minded of use might appreciate living in a trailer park. In fact, people who live at trailer parks often cite the strong, connected community that characterizes many trailer parks.
I’m not going to deny that there aren’t negative connotations associated with mobile homes. However, a foreclosure might sweeten the deal for you, especially if you’re starting out with little money and don’t want to take on a huge loan.
Hopefully, my points in this article shed some light on the benefits of living in a mobile home.
Let me know in the comments – do you, or would you live in a mobile home?