It can be a tough decision to choose between a manufactured home vs. a regular home. Canadians who are familiar with regular homes may want to switch to the other and vice-versa.
This article helps you to:
- Understand what a manufactured home is all about
- Realize the difference between building a home vs a manufactured home
- The core benefits and disadvantages of the two.
What is a Manufactured Home?
A manufactured home is a type of building that is prebuilt in factories and placed on a piece of land. There is no need to make concrete slabs because the home is only “installed” on a lot of land after its construction in a factory.
Is a Mobile Home Considered Real Property in Canada?
A mobile home is not considered “real property,”, especially by banks and money lenders. These financial service providers tend to offer a mortgage on regular homes than mobile homes.
Manufactured Home vs. Regular House: Key Differences
Do you want to know the difference between a manufactured home and a regular home? The primary difference is that the former is constructed in a factory, while the latter is built on the piece of land where it is to be forever.
However, those are not the only differences between a mobile/manufactured home and a regular house.
Read on to find out more about the key differences that make the two differ in their way.
Pros and Cons of Manufactured Homes
Let us talk about the good and bad sides of buying a manufactured home, as opposed to building one.
1. Manufactured Homes are Affordable
One of the main reasons prospective homeowners shy away from building a house is the cost of construction. While it takes up to $200,000 to build a standard home (depending on the location); you can buy a mobile home for under $100,000.
Also, the increase in demand for housing in Canada can impact the cost of building a home. Thus, it may be worth it to buy a mobile home and avoid the inflated costs of starting a new building.
2. Manufactured Homes Meet the “Structural Building” Requirements
Manufactured or mobile homes came into full force following the standards set by the HUD code. This code stands for Housing and Urban Development (HUD) code. It became popular in 1974, following the passage of the National Manufactured Construction and Safety Standards Act of 1974.
The Act stipulated that prefabricated homes must meet most of the building requirements, as they pertain to the structure of the home.
Thus, the HUD code is affixed as a tag in every mobile home. It indicates that the home was prebuilt with most of these building requirements in place, as set apart by the HUD code.
3. Pack into Your New Home in “3,2,1 Seconds”
You don’t have to stand under a shade for long or continue visiting the building site for many months until the house is ready. You can pack into your new (mobile) home in only a few hours, thanks to the fast installation.
Since it is prebuilt in a factory, all that needs to be done is to “lift the house” out of the truck and place it on the lot.
4. Flexible Design
The innovative design of a manufactured home permits the owner to move it at will. You can decide to pack to a new state in Canada and have your mobile home transported there in real-time.
This may not have been possible with a regular home.
Disadvantages of Manufactured Homes
Saving costs and affording to move the home with ease are the good sides of a mobile home. Some not-so-good sides may have you reconsidering your options. Here they are:
1. Manufactured Homes are not Loan-Friendly
Getting a mortgage on manufactured homes isn’t easy, because only a few insurers offer that. With only a few available, the competition is zero, and so is the motivation to offer better services.
In rare cases, the mobile home insurer will ask you to provide a copy of your credit score to access your creditworthiness.
2. Shortage of Affordable Pieces of Land
There is a shortage of affordable pieces of land in some rural areas. This may become challenging, as you don’t have a lot to place your mobile home once it’s ready.
Second, some lands in Canada are bound by deeds for only on-the-site construction. Since this is a mobile home, it wouldn’t be possible to get a lot here.
3. Mobile Homes are not “Your Property”
In the real sense of the word, you are not the owner of a mobile home. Most of these prefabricated homes are typically in parks, where they are placed side-by-side with other mobile homes.
These parks are owned by other people, to who you will pay rent. So, you don’t own the home in essence because the land isn’t yours and you may be asked to leave at any time.
Advantages of Regular Homes
Building a regular or traditional home from scratch may be a better idea because of the following reasons:
- Regular homes are available in different shapes and sizes.
- Multiple financing options are available for regular homes. These include mortgage loans.
- Regular or “stick-built homes” gain in value over time, when compared to manufactured homes.
Downsides to Traditional Homes
Traditional or regular homes are not worth the investment for the following:
- Regular/traditional houses are typically expensive to purchase or construct.
- Paying off the mortgage may take a lot of time.
- Regular homes are not federally-regulated.
Building a Home vs. Manufactured Home: The Verdict
The decision to choose between a manufactured home and vs regular home often boils down to the prospective homeowner’s choice and finance. If you are looking to save costs, go for the manufactured home. You can save up to 40% of the total cost of constructing a regular house. For building appreciation, consider buying a regular home or building one. Depending on the location and the amenities, the building can fetch you some money in the future.