Attaching a mobile home to owned property - any advantages/disadvantages?

I know someone who owns a double or triple-wide mobile home and the property it's sitting on. She also purchased an adjacent lot. I'm not familiar with all the terminology involved, but I'm trying to find out if there are any advantages/disadvantages to making a property "permanent" on the land.





This process involves setting a foundation of some sort and having it reevaluated (by an appraiser I assume.) From there you go to the city and have it reclassified as a home vs. mobile home.





The one advantage I can think of is banks would be willing to lend home equity at better rates, treating it as a home vs. a mobile home. Many banks won't give out home equity loans to mobile home owners, even if paid off. Are there other advantages?





The disadvantage. Higher taxes? Would property taxes change somehow with this reclassification? Would it help or hurt in any way (i.e. taxes) for her to combine the property and both lots into one large lot?

Attaching a mobile home to owned property - any advantages/disadvantages?
The process you are describing is called 'title elimination' or something similar. In my state, mobile and manufactured homes are licensed just like trailers and cars, by the vehicle licensing department. By eliminating the title, you are tying the ownership with the land which give lenders a much better lien. Many lenders won't lend on mobile homes if the title has not been eliminated. It can also be retitled later if needed.





It shouldn't have any affect on the value, but may help in obtaining better financing since the market has completely collapsed for mobile home lending.
Reply:One major factor to consider is a lender will lend on a manufactured home that has ANY attachments (car port, room additions etc). Your friend should make plans, build a SFR (single family dwelling) and tear down the manufactured home. Most lenders will not make loans on manufactured homes if they are NOT on a permanent foundation as well. You are better off building a nice new home and getting rid or renting out the mobile once the new home is built.
Reply:Mobiles loose value regardless. It will make her insurance go down, taxes go up and might even be against her town, counties or states laws.





Temporary mobile home sites are fine when there is a plan set for regular construction and the temp situation is "Just until the new house is built".





Reclassifying means nothing if you want to sell, a horse is a horse is a horse....unless of course its sway backed then its a nag...which is what will happen when the value drops out from under your friend. Sometimes the land has more value if you move the mobile!
Reply:The appraisals I've seen don't care if it's on a permanent foundation or not. It still gets compared to other trailers, not traditional homes. If you have the land and a place to live, you can build your permanent home in stages and save a lot of money in the process.