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02/01/2025

The Monthly Costs of Owning a Mobile Home



The front yard of a tan and red manufactured home at dusk with a lighted walkway

Mobile homes offer a budget-friendly alternative to traditional houses, bringing with them the same essential comforts and benefits. Choosing the right mobile or manufactured home can create a cozy and welcoming space for your family, making it a wonderful place to call home for many years.

The price of owning a mobile home includes more than just the down payment and closing costs. When you start saving for a mobile home or looking for financing, it’s important to remember the monthly costs of ownership as well, including your monthly payment and occasional maintenance expenses.

If you’re looking to enjoy the benefits of homeownership or just want to build a better budget, keep reading. We’ll explore the upfront and hidden costs of buying a mobile home, plus provide you with a few tips to help you save each month.

Are Mobile Homes Affordable to Own Per Month?

On average, the initial asking price for a mobile home is lower than that of a traditional home – about $148,100 compared to nearly $360,000. In this respect, mobile homes are certainly more affordable, both initially and on a per-month basis. That's because monthly payments are heavily dictated by a home's overall price; the lower the cost, the lower the monthly payments often are, as well.

Examples of Monthly Mobile Home Costs

If you come across a fantastic deal on a mobile home, you may feel inclined to purchase it quickly. However, it’s essential to evaluate the long-term expenses and monthly costs of owning a mobile home before committing to a loan or making a down payment. Here’s a list of what to budget for as a mobile home owner.

A manufactured home with an off-white and grey exterior with wooden front porch steps

Mortgage Loan Payments

Many Americans choose to finance their mobile homes, and if you’re one of them, your monthly loan payment may be your most significant recurring expense. While mobile home loans often come with shorter terms and higher interest rates compared to traditional mortgages, especially for homes not permanently affixed to land, they also provide an opportunity for affordable living and flexibility in homeownership.

For a new single-wide mobile home, the average loan payment could range from a few hundred dollars to over a thousand dollars per month, depending on the down payment, loan term, and interest rate. Payments may be lower for used homes.

That said, buyers should be cautious about the hidden costs of buying a used mobile home, such as repairs or updates, which can increase overall expenses. In certain cases, it may be financially wiser to buy a new mobile home instead of a used one.

Mobile Home Insurance

Mobile home insurance is another essential cost to factor into your monthly budget. Insurance policies typically cover damage from certain types of natural disasters, fire, and theft, with some variety depending on location and insurer.

While premiums vary based on location and home condition, most manufactured homeowners pay between $750 and $1,600 annually or $62.50 to $133.33 per month. In hurricane-prone areas, additional coverage for wind or flood damage might be required, raising the total a little higher. Be sure to investigate the potential cost of homeowner’s insurance before starting the process of buying a mobile home, whether it’s new or used.

A manufactured home with dark grey siding and an entry with stone steps

Property Taxes or Land Rental Fees

If you own the land your mobile home sits on, you’ll pay property taxes. Fortunately, these are generally lower than taxes for traditional homes because they don’t always include taxes on land plots.

What if you rent land in a mobile home park or community? In that case, expect monthly lot rent fees. These are usually a few hundred dollars per month but can climb higher in sought-after areas. Some lot rents also include amenities like garbage collection or water, so review your mobile home’s lease agreement carefully to understand what’s included.

Utility Hookup and Monthly Bills

To make your mobile or manufactured house feel like a true home, having utilities is essential. Some mobile homes will already have them ready to go, while others may need them to be set up for the first time. Setting those up can involve significant upfront costs.

Generally, mobile home utility hookup costs for water, electricity, and sewage run anywhere from $6,500 to $30,000, depending on local infrastructure and installation requirements. Gas hookups, if needed, add to these expenses.

Once your utilities are installed, your monthly utility bills will be significantly lower. Most Americans spend about $429 per month on all their utilities, including water, electricity, and internet. As with all utilities, the more you use them, the more you’ll pay each month.

Regular Mobile Home Maintenance

Most mobile homeowners already expect to cover certain monthly expenses. But maintenance costs – which can vary from zero dollars one year to hundreds of dollars the next – can sometimes take you by surprise. Keeping your mobile or manufactured home maintained can extend its lifespan.

Even if you purchase a brand-new manufactured home in excellent condition, wear and tear will eventually necessitate some repairs. For example, you might need to cover the costs for:

Because your annual maintenance expenses aren't always predictable, it's a good idea to set aside a "rainy day" fund in anticipation. For a good rule of thumb, set aside between 1% and 2% of your mobile home’s total purchase price each year for mobile home maintenance costs.

For example, if you buy a new mobile home for $120,000, you might want to save between $1,200 and $2,400 each year. Tuck that money into a savings account and keep adding to it every year. That way, you’ll always have some money available for emergencies, whether it’s repairing a dent in the wall for $40 or replacing your home’s roof for $4,000.

An outdoor air conditioning system in front of the foundation of a manufactured home

How Can You Lower the Costs of Living in a Mobile Home?

The expenses of owning a mobile home can add up over time. The good news, however, is that there are several ways to manage and reduce these costs effectively.

  1. Budget for Regular Expenses
    Build a comprehensive budget that accounts for recurring costs like insurance, taxes, utilities, and maintenance. This is a smart approach to purchasing a home you can easily afford and will help ensure your peace of mind for long-term costs or surprise home repairs.
  2. Order Inspections Before and After Buying
    Whether buying new or used, a professional inspection can uncover hidden costs you might not expect as a homeowner. This is particularly important for older homes, which may need immediate upgrades to meet safety or energy standards. After moving in, order regular inspections to catch minor issues before they become major.
  3. Prioritize Maintenance and Upkeep
    Regular maintenance extends the life of your home and reduces the likelihood of extensive repairs. Address small issues, like sealing leaks or replacing filters, as soon as you can to keep costs down.
  4. Reduce Electricity Usage
    Invest in energy-efficient appliances, LED lighting, and proper insulation to lower your monthly utility bills. During hot or cold months, weatherproofing doors and windows can further reduce your home’s heating and cooling costs.
  5. Refinance Your Mortgage
    If you took out an initial mortgage with a less-than-ideal rate, you aren’t necessarily stuck with it. Refinancing your mobile home’s mortgage could save you hundreds of dollars per month, making it easier to meet other financial obligations.

21st Mortgage Makes Manufactured and Mobile Home Ownership Affordable

Purchasing a mobile home can be a fantastic choice for you and your family. With the right financing options, it can also be a smart decision for your financial well-being.

21st Mortgage is a trusted mobile and manufactured home lender in the United States, and we help people like you find a new or used mobile home for sale and obtain the financing they need. Our loan officers are here to connect you with a mortgage that’s affordable now and in the years to come, or we can assist with refinancing your current mortgage to find you a better option. Get in touch with us online today to learn more.

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