{"id":1330,"date":"2021-04-03T13:00:04","date_gmt":"2021-04-03T17:00:04","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1330"},"modified":"2024-04-25T23:20:02","modified_gmt":"2024-04-26T03:20:02","slug":"types-titles-taxes-what-to-know-before-you-buy-a-mobile-home","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/types-titles-taxes-what-to-know-before-you-buy-a-mobile-home\/","title":{"rendered":"Types, Titles & Taxes: What to Know Before You Buy a Mobile Home"},"content":{"rendered":"\n
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Mobile homes are popular choices throughout the United\nStates. They\u2019re popular in Pennsylvania, big news in Florida, and in high\ndemand across the southern, western, and midwestern regions of the country. They\u2019ll\nlikely do very well in the months ahead. In a pricey market, mobile home\nownership (property tax included) is relatively inexpensive. Buying a mobile\nhome can be a path to ownership for hopeful\nbuyers<\/a> recovering from pandemic-related challenges. <\/p>\n\n\n\n

So, where do you start shopping for a mobile home? What type\nof land arrangement should you choose? What do you need to know about your\nhome\u2019s title, financing options, and taxes? Let\u2019s explore the world of mobile\nhome buying and set out a plan.<\/p>\n\n\n\n\n\n\n\n

Browsing the Listings<\/h2>\n\n\n\n

To get a feel for what\u2019s out there, search for \u201cmobile\/manufactured\u201d home listings on any major real estate website. For example, you can find Pennsylvania mobile homes<\/a>. Or you could browse this mobile home sales site<\/a>, which is endorsed by the industry\u2019s trade association. <\/p>\n\n\n\n

To zero in on the right house, look at the bedroom and bathroom\ncount, flooring, overall condition, the size of the kitchen and other rooms,\nwhether the land is included or the lot is owner-occupied, and whether\nassociation or lease fees apply. Be sure the rules and restrictions make\nsense to you. There may be pet limits, parking regulations, and directives for\nhome upkeep and yard maintenance. <\/p>\n\n\n\n

Look for amenities you care about, too, that add value to\nyour purchase. Would you like a place with round-the-clock security? Beautiful\nscenery and walking trails? A swimming pool, tennis courts, or fitness\nequipment? A clubhouse for social gatherings and meetings? What about central heat\nand air conditioning? Many mobile home communities offer these features and\nmore. <\/p>\n\n\n\n

Knowing the Title Types <\/h2>\n\n\n\n

All mobile homes have titles that the buyer acquires. There\nare two main types of titles. Mobile home titles designate the home as a\nvehicle (personal property) or as a permanently located dwelling (real\nproperty).<\/p>\n\n\n\n

Some mobile homes\nare considered personal property. <\/em><\/h3>\n\n\n\n

In the basic trailer park arrangement,\nyou\u2019re renting your spot of land. You own a moveable trailer. In this case, your\nmobile home would not be classified as real estate. Usually, you can\u2019t get a\nmortgage. But this varies. California law, for example, allows chattel mortgages (also called security agreements) for\nmobile homes without land ownership. Some (but not all) mortgage companies can\nprovide these loans. <\/p>\n\n\n\n

As you might have guessed, these home-only sales tend to be quite affordable. And while buyers have to pay the applicable sales tax, they won’t pay taxes on the land. They\u2019ll purchase registration and tags according to the state\u2019s rules. This is much like owning an RV, and the state motor vehicle department keeps records for each Vehicle Identification Number (VIN)<\/a>. <\/p>\n\n\n\n

Some mobile homes\nare categorized and appraised as real estate<\/em>. <\/h3>\n\n\n\n

If the mobile home is \u201clocated\u201d \u2014 owned together with the land it occupies \u2014 it is real estate. The home\u2019s hitch, wheels and axles are removed, and the home is on a permanent foundation and connected to traditional or renewable power sources. The land rights (lease or ownership) are transferred through a deed. As an example, Pennsylvania law states that the deed to the land, transferred from seller to buyer, will declare ownership of the mobile home. <\/p>\n\n\n\n

Mobile homes sold as real estate are, of course, subject to assessments and local property tax. The local tax assessor\u2019s office will identify the Property Index Number (PIN)<\/a>, which will appear on your deed. Some states issue real property decals (as opposed to vehicle registration stickers) to designate located mobile homes. <\/p>\n\n\n\n

Buying the Land and Financing the Home <\/h2>\n\n\n\n

In some mobile home parks, owners rent the land. But by owning appropriately zoned land, you can avoid high park rents, and retain control over the property. The second-best scenario is a mobile home community that\u2019s resident-owned. If you\u2019re leasing your spot, a three-year term is the minimum for financing your mobile home purchase<\/a> with a mortgage backed by the federal government. <\/p>\n\n\n\n

Conventional loans are also available for homes on a\npermanent foundation if you own the land. A structural engineer may have to\ndeclare that the home complies with HUD regulations. Be sure to have key\naspects of the home inspected: proper placement and installation, sound roof\nand drainage, well-maintained skirting, and appropriate insulation. Take care\nnot to make any alterations that could impact your loan. Certain other rules\napply, so be sure you have an experienced mortgage specialist or loan officer\navailable to provide guidance and answer questions.  <\/p>\n\n\n\n

For mobile homes on permanent foundations, have a title\ncompany handle your closing. The transaction is complex. The home and the land\ncould each have a title and a legal description. Therefore, two title searches\ncould be necessary \u2014 one to look for any burdens or claims on the land, and\nanother to uncover liens and claims on the home. The title company will go\nthrough the township records to find billing or permit issues that the county\nrecords don\u2019t account for. When the deal is done, the title agent will record the deed<\/a>\nwith the county where the home is located.<\/p>\n\n\n\n

Is there a homeowner\u2019s association? Call the office to be\nsure the previous owner has kept the home up-to-date on all fees and charges,\nand that you\u2019ll get a clean record when you take over the title.<\/p>\n\n\n\n

Convert a Mobile Home Title to a Real Estate Title<\/h2>\n\n\n\n
\"Mobile<\/figure><\/div>\n\n\n\n

Homes manufactured after June 15, 1976 are designed to comply\nwith the building code set forth by the Department of Housing and Urban\nDevelopment (HUD). They may be converted into real property. HUD enhanced its\nstandards in 1994, so newer homes meet higher standards for weather resistance\nand energy efficiency.<\/p>\n\n\n\n

If you have a moveable trailer you\u2019d like to convert into\nreal property, you\u2019ll turn in the title and officially withdraw your registration\nfrom the state\u2019s motor vehicle department. You\u2019ll then create and record a real\nestate title. You\u2019ll need a certificate of location from the state, showing the\nhome is placed on land zoned for mobile homes.  <\/p>\n\n\n\n

There are several financial and logistical steps to plan. You\u2019ll\nhave the mobility features removed from your home. You\u2019ll apply for an oversized\nor overweight load permit to move it on state highways. You may be setting up a\nporch and pavement in your new location. Hookups to an adequate water supply\nand sewer system are legally required, and so are building permits to do the work.<\/p>\n\n\n\n

You\u2019ll need to speak with your insurance company in advance about the process so your newly located home can be insured. Ultimately, the local property tax assessor will recognize your home as real estate. Refer to Sections 4 and 5 of the Uniform Manufactured Housing Act<\/a> for details of the steps an owner is required to take.<\/p>\n\n\n\n

What to Know About Mobile Home Community Life<\/h2>\n\n\n\n

Probably the best way to assess the mobile home lifestyle is\nto compare and contrast it with condo living. Let\u2019s take a look: <\/p>\n\n\n\n