While resale values for modular homes can appreciate, the same is not true with many manufactured homes. Whether your manufactured home will appreciate or depreciate in value over time is really up in the air, and the answer isn’t as clear-cut as you may like.
To begin, if you own a manufactured home, and you do not own the land the home is placed on, you most likely do not have a traditional home loan or mortgage. Since a personal loan includes a higher interest rate, your monthly payments go toward the interest on the loan, rather than paying down the principal and building equity.
For this reason alone, manufactured homes don’t typically increase in value the way a modular or site-built home does, but that doesn’t mean that it won’t or can’t. That being said, when a manufactured home does appreciate, it may only build enough equity that it allows you to own the home free-and-clear. Just like any other home, the resale value of a manufactured home is affected by factors such as the housing market, the community, availability, and more.
When it comes to the resale value of a manufactured home, the land is often the great equalizer. There is a better chance of building equity on a manufactured home if you are also the landowner.
You will want to inquire with your lender about getting a home equity loan on your manufactured home. Some lenders may service such a loan while others may exclude this type of loan.