California Manufactured Housing Development on the Rise

It is no secret that everybody wants to live in California. It´s also no secret that it´s very expensive to live in California. With the upswing of manufactured and mobile home sales and developments, there is hope to reverse California´s costly reputation. Today, manufactured and mobile homes are built at a fraction of what "stick-built" homes cost to construct, due mainly to the utilization of the latest state-of-the-art materials and fabrication processes.

It´s not uncommon now to see entirely new manufactured home subdivisions being constructed specifically for mobile home communities, and typically the homes are virtually indistinguishable from other "stick-built" homes in surrounding neighborhoods. Manufactured and mobile homes are even used to fill in vacant spaces in existing neighborhoods from time to time.

Manufactured homes are now, and will remain, the most affordable housing to own in California.

Today´s manufactured homes are nothing like what you may have seen produced ten or even 20 years ago. They are much better. Manufactured homes are well built and have many advantages, including energy efficiency, quality workmanship, and dry wood manufacturing. The energy efficiency of a manufactured home can be found in the use of thick insulation and quality windows and doors. This eliminates drafts in the mobile home, and prevents climate-controlled air from getting outside. So, your heating and cooling costs are lowered, and most importantly your mobile home stays comfortable.

Modern Manufactured Homes are often mistaken for site-built homes, because they can look so similar. Steeper roof´s, gables, and larger floor plans all make a mobile home more desirable to buy and live in. Plus, home buyers also have the option to add matching garages or separate storage buildings.

So, is now a good time to buy a manufactured home in California?

The latest statistics say yes. In a recent comparison of home prices to rental agreements, the gap has closed to under $120 (msnbc). Therefore for just over a hundred dollars a month, you could own the house, condo, or mobile home you are renting. In the past, California´s past comparisons between renting and buying have normally been well over $1,000 per month difference.

The latest numbers released show a slow-but-steady rise in home sales, combined with an increase in mortgage rates. Sales of previously occupied homes rose 2.4 % from April to May this year, but the results were still below expectations. Only time will tell, but this may be a signal that the bottom has been met, and housing demand will increase. Any increase in demand is always followed by an increase in prices, so now may be the time to purchase a stick-built or mobile home. Recent mortgage rates have been ticking up, but still remain very low compared to recent history. The average rate for a 30-year fixed mortgage was 5.42 percent, up from 5.38 percent a week earlier.

The financial market´s woes have had an effect on Mobile Home Loans

Every lender has taken a toll of their lending programs, and a good number of them decided to cut their manufactured home loan programs, and all of the risk associated with it, about 6 months ago. The mobile home loan programs that still exist have undergone so many changes that an underwriter´s approval is only offered to applicants with a good credit history, no bankruptcy for 5 years, and a down payment. These obstacles have made it even more important than before to find a mortgage broker with experience in mobile home loans, because they will know the best options and find the best rates.