How Much do Manufactured Homes Cost?
One of the basic necessities of life is shelter. Four walls and a roof can come in so many shapes and sizes, it can become difficult to narrow down the options to suit your pocketbook and lifestyle. Today’s families prefer a home that requires less of their time to maintain, yet has the perfect balance of comforts and efficiencies. Making good decisions about your current housing needs should also include an exit plan that ensures your home choice is marketable years down the road, when you are ready to up or down size.
Making the decision to craft a custom built new home is exciting, and something not every family gets to experience and enjoy. While housing consumes a large portion of every family’s budget, it’s important not to become ‘house poor’ – as this unfortunate circumstance may tarnish the joy the home was built to deliver.
Given the range of options available, it’s necessary to know how much you can comfortably afford to spend on homeownership before you embark on the shopping experience. Nothing can frustrate and disappoint more than investing time in narrowing down what you want in the perfect plan, or location, only to discover it’s not only more than you need, or more than you can comfortably spend.
It’s also important to add all the additional costs to the total ‘move in’ price, so that there are no nasty surprises that can leave you in the ‘poor house’. Unless you have a large inheritance or lottery win in your bank account, you will need to qualify for a mortgage or loan in order to pay for the house, and a down payment.
Lenders have developed RULES about how much should be borrowed, based on what you have and what you earn. Applying these rules to your circumstances can give you a good idea about the price range you should be shopping in for your home.
RULE #1 is that your monthly housing costs should not exceed 32% of your gross (before income tax deductions) monthly income. This rule ensures that you will have sufficient additional income to live comfortably in the home you have purchased. Housing costs not only include your monthly mortgage payments, which are composed of principal and interest, but also property taxes and heating expenses. If you are leasing your site, the entire annual site lease is also included. Lenders will add up your housing costs and based on your gross family monthly income, calculate how much 32% is of your total gross income. This calculation is called your gross debt service ratio.
RULE #2 is that your entire monthly debt payments cannot be more than 40% of your gross (before income tax deductions) family monthly income. Your entire monthly debt includes your housing costs and all other payments; for example, car loans or leases, credit card payments, lines of credit payments, student loans and any other payments you are obligated to pay. This amount is called your total debt service ratio.
These TWO RULES apply to the purchases and mortgages of manufactured homes AND any other type of home construction.
Other considerations in addition to your household gross monthly income are the amount of your down payment and the mortgage interest rate you negotiate. An important element in the mortgage process is mortgage loan insurance, which helps protects lenders against mortgage default, and allows home buyers to purchase with a minimum down payment of 5% yet qualify for interest rates comparable to those with a 20% down payment. More information on Mortgage Loan Insurance can be found here: https://www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm
By applying these RULES to your family’s circumstances you will have the amount that you can reasonably afford to spend on your shelter needs. This is something I am happy to assist you with, if you like!
Many families chose the modern manufactured home option because it gives them the certainty of a contract price for the entire home package. During the process, they can shop and compare quality, warranty, construction, supply, processes, options, colors and products, upgrade or go with standard, and KNOW at the end of the day they will get exactly what they purchased and how much it will cost.
A HUGE benefit of choosing a manufactured home, besides the advantage of being constructed in a controlled environment, is that the contractor and the factory tradesperson have built countless homes, and all of them at a fixed price. You have access to an engineering department and the modern drafting computer programs, so you KNOW your home will meet or exceed all current building codes.
The cost of a manufactured home compared to its ‘site built’ option depends on: How big? How fancy? How many options? SAME as for ‘site built’ homes BUT you get the added benefits of the engineering and a fixed price and a contract for your home.
One constant for manufactured and site built homes is the cost of the land, its preparation and servicing.
Manufactured homes can be designed to be set up as surface mount foundation homes, keeping site costs to a minimum, or can be installed on a full foundation, depending on your budget and lifestyle. An economical alternative to a full basement is a 4’ crawlspace or frost wall.
As a retailer for Kent Manufactured Homes, I can quote you a price for a single section or multi section design and give you a price on the home itself, and a price on additional setup and land, servicing, land preparation, depending on what your needs are.
A basic single section home, such as The Beesands (https://www.kenthomes.com/beesands-minihome.aspx) at 1024 sq. ft., with standard construction and features, set up on a surface mount foundation (which includes blocking, tie downs and white vinyl skirting), plumbing and electrical connections, and waste disposal, will start at approx. $115,000 + HST & New Home Construction Rebate.
A basic multi section home, such as The Snug (https://www.kenthomes.com/Snug-Bungalow.aspx) at 1088 sq. ft., with standard construction and features, setup on a frost wall foundation with plumbing and electrical connections, and waste disposal will start at $179,000 + HST & New Home Construction Rebate.
If your plan is to start with an undeveloped building lot, site work and setup will add to these amounts. Rural land will typically require, in the least, the following:
|Excavation & Backfill or Pad for Surface Mount (assuming no import or export of material required)||$3,000.00||+|
|Steps (To Code)||$2,500.00||+|
|Drilled Well & Pump||$10,000.00|
|Septic (Incl. Design & Approval)||$10,000.00||+|
|Ductless mini split heat pump||$3,500.00|
|ESTIMATED TOTAL + HST:||$39,800.00||+|
*PLEASE NOTE THE FIGURES ARE ROUGH ESTIMATES AS OF NOV 12 2020. FINAL COSTS WILL VARY GREATLY DEPENDING ON YOUR SPECIFIC SITE REQUIREMENTS AND GEOGRAPHIC LOCATION.
A Town lot may be serviced, and save you the expense of installing a well and septic (approx. $20,000).
If you are interested in further exploring the manufactured housing option to fill your dream of home ownership, and want to have confidence that you will be living in a home you can comfortably afford, and it fits your life style today, and tomorrow, I welcome your inquiries! We will share our expertise and knowledge with you in a relaxed and professional setting.