Living in Sacramento and the surrounding areas has never had more to offer. Sacramento is close to everything. The Bay area, the ocean, the Redwoods, Lake Tahoe, the Sierra Mountains, Yosemite and much more. We now have the Golden One Center for the Sacramento Kings and many other outstanding events and concerts. With our strong economy, there are many great restaurants and night life options popping up all around town. These are truly exciting times to be in our great city.
What’s the downside of living in Sacramento? Many people are being priced out of housing options in our area. Average rents in the area are reported to be around $1,800 per month. The median home value in Sacramento County and the city of West Sacramento in July 2018 was $370,000. Most people buying the median priced home with 20 percent down or less will have mortgages ranging from $2,000-$2,500 with taxes, insurance and PMI if applicable.
What is the best kept secret you ask? Manufactured homes or mobile homes in manufactured home communities located around our area. Now stay with me for a minute. If you haven’t looked at one of these homes in the past five years or so, you might not know what we are really talking about. People are often stuck on the negative stigma of older mobile homes and are surprised when they take a minute to explore this lifestyle option. These homes are attractive and functional homes that are loved by a wide range of owners. Whether occupied by one person or a whole family, these homes have a lot to offer and the communities they are located in have a lot to offer. The newer homes are amazing. Most people can’t tell the difference between a new or newer manufactured home and a stick-built home. An added bonus is they are located in communities with club houses, swimming pools and other community features and functions at no additional fee.
Manufactured Homes and Mobile Homes for Sale
Manufactured homes and mobile homes living is the best kept secret for affordable housing in our area. Let’s look at the costs of living in a local community manufactured home. Most homes are located in land lease communities. Yes, you rent the land, but you own your home. The average land rental fee in our area is $600-700 per month. You don’t want to spend money on rent, I get it. But you should consider how much overall money you save on your total monthly housing cost. For your rent you get the use of the common areas including the club house and swimming pool which are located in most communities. Also, the community is responsible for the property taxes on the land, on site management, and upkeep of common areas. If you bought real estate, your property tax alone on a median price home would be around $380 a month. Renting the land may not be such a bad deal after all, considering all the other community perks. Another overlooked added bonus is your water sewer and trash bills in these communities are far lower than real property homes, easily saving you over $100 a month.
You can purchase a used home from $20,000 to $90,000, depending on size, age and location. A ball park average price of a larger home is around $50,000, and this is a very nice home. That’s far less than the $74,000 needed just for the 20% down payment on a median priced real property home in our area.
If you pay cash for your mobile home, the monthly expenses would only include lot rent, insurance, and property taxes. Lot rents may vary, but many of them run around $600-$700 in many cases. Insurance on the home is usually $500-600 per year and the property tax on the home is paid by you and would be around $400-500 a year for an average priced home. Your monthly average housing cost with lot rent, taxes and insurance on a manufactured home in this price range would be approximately $700-$800 per month.
If you were needing to finance the home, down payments start at 5% and up. Most people put down 10% to 20%. On a $50,000 home with 10% down ($5,000) your estimated monthly payment would only be $390 per month on a 20-year term. And, there is no PMI. So, think about it, with 10% down your total average housing cost for a nice resale manufactured home including land rent, mortgage payment, taxes and insurance would be in the neighborhood of $1,000-1,200 per month. It is a far better option than renting.
You will be amazed when you see the quality and comfort of the new manufactured homes. These are a great option for many buyers who want a new quality home. These new homes will often run in the $130,000-150,000 range when completely installed with all options and accessories including landscaping. Loan payments on these homes with 10-20% down would usually run around the $700-800 range. Your total monthly housing costs for a new home with land rent and the mortgage payment would be $1400-1500 a month. Property taxes and insurance would cost around $150 per month so total housing cost would be around $1600 on most homes. Still a better option than renting, and way more affordable to most people than a big mortgage.
Manufactured Homes for Sale Sacramento CA
So, the secret is out. If you have been struggling to find a nice home where you can live for an affordable price in the Sacramento area, then manufactured home communities could be your answer. Hanson’s Mobile Home Sales is available to help you explore this great option.