Cost of newer mobile home - rule of thumb

Hi MHUers,
In the due diligence manual when analyzing markets, Frank has a rule of thumb: The cost of a 2-bedroom apartment should be the same or greater than the cost to rent a lot plus make the monthly mortgage payment on a newer 16x80 mobile home.
Ok, I like it, makes sense. But what is the cost of a newer 16x80 mobile home, and what would be the monthly mortgage payment on that?

-Aaron

There are a number of unknown variables in your question, but here is an estimate.

I can buy a new 16x80 home installed (in MN) for right around $58K. With reasonable credit, 20% down a buyer can get a rate of 8%. A 10 year loan period results in a payment (P&I) of about $625/mo.

For a “newer” home (let’s say “newer” is about 10 years old ) it will depend on your area and how likely you are to find a used home that can be moved, and someone to move it. But one can be had for about $35K around here. The buyers monthly payment, with the same variables and terms as above, would be about $375/mo for P&I.

Both of the above are very dependent on location, quality of home, buyer credit score and loan duration. The loan duration plays a big role in the monthly cost. Also, many lenders will allow 10% down but most require 20% down for a used home.

Get your hands on a loan calculator (readily available online) to do the “what if’s” for loan costs.

Good luck!

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