Are you planning to purchase a mobile or manufactured home? One of the best decisions you can make before you buy a mobile home is buying the land on which you would like to install the house. However, before you start looking for a vacant piece of land packages for installing your mobile home, there are some factors you need to consider to ensure that your decision remains consistent with your specific needs. 

Factors to Consider when Buying Land Before Buying a Mobile Home

Some of the important features you need to consider before buying mobile homes are:

Financial Alternatives

If you aim at buying the land with the help of a loan, there are some financing alternatives available for you. To start with, you can think of taking up two distinct loans -one for your manufactured home and the other one for the land you would like to purchase. However, the option of financing can also bring about some disadvantages you should know about. 

Additionally, the fact that you are expected to ensure the payment of closing costs on both types of loans. The second loan might carry a higher rate of interest. This is because the DTI or Debt-to-Income ratio that lenders tend to calculate towards determining the creditworthiness of the prospective borrower. It will depend on the total debt. As an all-new loan will increase the DTI ratio, the lender is expected to consider your profile as a riskier borrower while offering you a higher rate of interest.

Another financing option is taking up the manufactured home loan along with land. This will allow you to ensure the financing of the purchase of both the land and home with the same type of loan. As the lender is capable of offering you a lower rate of interest while taking out a package loan, and you are expected to pay the respective closing costs just once, the mobile or manufactured home loan along with land could turn out to be more affordable. It is a highly cost-effective option in comparison to two distinct loans.

Loan Approval

Ensuring approval for the mobile home loan along with land before you start searching for a factory-built manufactured home and a vacant land will permit you to get an estimate of the amount of loan the lender is willing to offer you. As the lender will be explaining to you how much you are able to get upfront for purchasing the land, you can start the research process of the right properties that fall within your price range.

For instance, if you qualify for the land valued at $135,000 for every home loan, the lender might go ahead with lending you an amount of $100,000 for the respective home and the remaining $35,000 for the purchase of land. Therefore, in this manner, you are aware of the exact amount you will have available for purchasing the desired piece of land. When you get approval for the loan, you are also expected to reveal that you are interested in buying the particular piece of land. This helps in providing leverage when you have to negotiate with the sellers.

Consider Plot Size & Location

The overall size of the plot of land you wish to purchase is also a significant factor to consider. It is because the overall size of the plot will affect the size of the mobile home that is getting manufactured and the one you wish to purchase. If you are in search of a piece of land for day-to-day living, a vacant plot of land in some famous residential neighborhood or in a dedicated mobile home community will be regarded as the best option. A reliable land location service can also help. 

However, if you wish to set up your business, or you would like to own abundant outdoor space, then you should consider purchasing a larger plot of land in some remote location. Before you close on a specific plot of land, you should also check into the zoning ordinances along with any restriction on land use that might be applied when you are buying the same. There are some zoning regulations that might prevent you from placing the mobile home in a specific location, restrictions on the respective use of land might exercise specific size restrictions on the home. These restrictions might as well prohibit the overall land use for specific activities -like running a business.

How to Buy a Mobile Home & Land Separately

If you wish to buy the mobile home and land separately, it is recommended to start searching by identifying each option individually. Where do you wish to live? What type of home should you place on a piece of land? Unless you will be buying an existing home and the land where it has been sited already, you can start your search with two factors separately. 

Buy Together

Do you wish to purchase a mobile home and a piece of land together for saving time and money on your next manufactured home purchase? You can start by finding a separate land for placing your mobile home. When you are searching for the right piece of land, there are some factors to consider -right from the location to its vicinity to schools, businesses, markets, and so more. 

Another effective way to ensure the same is by searching for open lands that are referenced in the area MLS. You can also think of hiring a professional realtor to do the job. 

Once you have acquired the land, you can look into the placement of the desired mobile home. Some important considerations are:

• How much grading is required?
• Is the land close to the nearest public utilities?
• What type of foundation will be used?

The most common way of bundling together the purchase of the mobile home and the land is by ensuring yourself a land-home loan. It will empower you with a conventional home loan for the existing mobile home and the land the house is sitting on. In case of a new mobile home, you can consider the option of the construction-to-perm loan.