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Updated almost 8 years ago,

Account Closed
  • Sacramento, CA
1
Votes |
7
Posts

Solid investment? Lend-able? Manufactured home on acreage

Account Closed
  • Sacramento, CA
Posted

I am considering purchasing a manufactured home on 5 acres in Northern California.  I want to know if it is a good investment -- if it will qualify for lending in the future, be re-sellable in a few years and hold its value. 

The home was manufactured in 1977 and a 433a foundation will be installed before the close of escrow, so it will qualify for a conventional loan.  It is in good condition, well-maintained with a recent remodel.  I will use it as my primary residence, but want to be able to rent or sell it (relatively quickly and with no loss) in a few years.  

I know that currently, many loans do not cover manufactured homes and those that do require them to be built in 1977 or later.  Does this date change often?  For example, if I want to sell in 5 years, will lenders then be requiring homes to be built in 1982 or later, and therefore my home wouldn't qualify for a loan?  (The cost of the property is $200-220K, in a very rural area, so a cash sale would be unlikely).  Will I have a hard time selling if I want to and finding a buyer who can get a loan?  The foundation is going to be put in, so that shouldn't be an issue for the next buyer.

What other factors should I consider buying a manufactured home of this age?  I know that stick-built is preferred, but is this a sound investment if the home is in good condition?  

Thanks.  

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