house mortgage at 130k - 5k down on a FHA loan (3.5% down) = $635 @ 30 years
home insurance = $100 a month or so
property tax = about $90
FHA mortgage insurance = $120 (for only putting 3.5% down)
Total = ~$945
Assuming they have 20% down, payments would be lower of course with additionally no $120 pmi fee. And of course if they are only in the 15% federal tax bracket, they’d get about $70 per month back on their taxes so it’d be either:
$945 - $70 = $870 and even only $750 (- $120) without FHA insurance.
Why do people choose to rent or RTO mobile homes for $600 - $700 in these markets? To me, the answer seems like they don’t want to make long term housing commitments, but then people that buy MHs tend to be long term tenants.