8 Signs That You Should Stop Renting and Buy a Manufactured Home

We’re just going to say it; apartments suck. First, you are giving up 30-50% of your income each month to pay your rent. Rents are staggeringly high. Those dollars create no long-term value for you. And your rent costs will only go up. That sucks.

Typical Monthly Rent Increase is $125/month

It’s true that in the affordable housing market, most folks think that they’re stuck. They have been living with family or renting an apartment or home for years. For renters, they often incur even greater costs driven by frequent moves. Not all rent increases induce people to uproot, but renters frequently cite that experiencing a rent increase directly impacted their decision to move. Among renters who moved and experienced an increase, the typical monthly amount is $125, according to a 2018 Zillow report.

‘Ready to Stop Renting’ Quiz

Renting an apartment forever is absolutely an option, but many renters will tell you that given a chance, they want out. Here are 8 signs that you’re ready to stop renting. If your answer is ‘yes’ to these signs – drop that apartment today. It probably sucks.

1. You are hooked on HGTV and dream of decorating your own home and doing some gardening. Paint your walls, hang your pictures, stencil your mantra, plant a shrub. A true home is one that you can make your own.

2. You have debt, but good news … you’ve got income. When you buy a manufactured home, the process of getting a home loan is different. Manufactured home lenders are looking to make good loans. Of course, they want to reduce risk, but MH lenders weigh different factors more heavily than traditional home lenders — like whether a person is employed, job longevity (changing jobs is ok if you have been continuously employed), and whether the person is able to make payments on credit cards and other obligations. Perhaps it’s a shock, but outstanding medical bills and college loans are not a big factor. Bottom line, most folks should consider applying for a loan to buy. Many get the thumbs up.

3. You don’t have debt and want to downsize. If you want to downsize and spend less on housing and more on fun, why rent? Manufactured homes are far less costly than stick built homes and you, as downsizers, can live around other owners, not transient renters. If you choose a great community, you will also have amenities and community events.

4. You really hate the idea of throwing money away, because you feel like you can really use it. When you rent, you know the deal. No value now or later. When you buy a manufactured home, you build equity. That means that you are paying something off that you will one day own. If you sell it before it’s paid off, you’ll still get money back. Even if you don’t get 100% of what you paid, you will get more than you would from paying apartment rent.

5. You are tired of apartment dwellers and want a community of neighbors. You get to know owners. They care and look out for one another. Who doesn’t need a little love?

6. You want a bigger place with 4 bedrooms and perhaps some luxury features. Depending on your budget, you can get a lot of cool features that you’ll love. Again, the coolest may be 4 bedrooms for your kids and/or your stuff.

7. You need flexibility. Rental contracts are tough to break if things change. If you own your house, you can sell it. Affordable housing is in high demand and if you are living in a well-run community, you will have a lot of flexibility.

8. You understand that part of your monthly payment will be for ‘lot rent’, but that your overall payment amount (home payment + lot rent) will typically be less than your apartment rent. And, you get stuff for your lot rent expense that you may not in an apartment ~ community manager, fun events, amenities, safety and security and more.

A home of your own remains an emotional milestone, a source of comfort and peace of mind, and for some, a source of generational wealth. If the signs are leading towards ownership, go on and take that step. You can do it!!