This dwelling style is sometimes known as a “manufactured home” since it is typically built in a factory and then mounted on a trailer chassis for mobility. Mobile homeowners usually rent or lease the property upon which their homes sit.
Trailer Park on the Bay, Green Haven Trailer Sales & Park, and Ontario’s Twin Pines Mobile Park are three of Canada’s most popular spots to park a mobile home. Cremona Mobile Park, Gaetz Mobile Home Park, and Mountview Mobile Home Park are just a few of Alberta’s more typical locations for mobile homes.
Mobile homes have several benefits.
Mobile homes are attractive because they are more affordable than conventional houses. Mobile homes have a lower price per square foot than traditional houses, making it easier to become a homeowner.
Mobile homes also offer the potential benefit of portability. Mobile houses are a popular housing option since they are inexpensive and flexible regarding placement and removal. This could be a good choice if you are still deciding whether to buy the land and want to make a long-term commitment.
You should be aware that not all mobile homes are created equal. Some manufactured homes are built on basements, while others are not. As with any structure, a mobile home’s support base is crucial. In reality, a home’s ability to secure finance depends on the quality and stability of the system itself. Without further ado, let’s look at the many foundation options for mobile homes and determine which satisfies building standards.
Varieties of Mobile Home Foundations
First, we can classify the different types of mobile home bases as permanent or temporary.
Solid Groundwork
When mobile homeowner permanently attaches their dwelling to a foundation, they see the site as real estate. Financing your house becomes much less hassle when it has a solid foundation.
On the other hand, permanent foundations require careful consideration of a wide range of issues and are typically more expensive than temporary ones. You should consider a permanent foundation if you own a piece of property and do not intend to move it.
Temporary Support Structure
The ability of non-permanent foundations to be detached from one location and moved to another is a significant benefit. The home’s wheels and axles are left in place, making the foundation easily portable. While this is a convenient setup for many, securing financing and loans might be more challenging than with more permanent options.
Now that you know about the different kinds of foundations, we may discuss mobile homes on privately owned land versus rented property.
Distinctions Between Land Ownership and Land Leases
You can either pay cash or take out a loan to buy commercial property from a seller. Now that you’ve paid off the loan, the land is legally yours to do as you like. Instead of buying land outright, one can lease it from an existing owner. For instance, you might agree to rent the ground for a certain length in exchange for a particular sum.
Instead of owning the land, you will be a tenant. However, there are situations where a lease can turn into a purchase.
There are fewer hurdles when placing a mobile home on privately owned land. However, there is much to learn about installing a mobile home on rented land. So, let’s check out some mobile home leasing financing options in the following area.
Long-Term Land Lease Agreement
Larger tenants typically sign retail or office space leases for five to ten years, with one or more option terms of one to five years apiece. However, ground leases are often for lengthier times, anywhere from 20 to 99 years.
In Canada, any lease agreement with a duration more significant than three years must be recorded in a government-maintained registry. Depending on the specifics of the law. It’s worth noting that land transfer taxes apply similarly to leases longer than 30 years as they do to freehold property sales.
Paying for a Mobile Home While Renting the Land
Mobile or modular homes on sites rented or held for a relatively brief time may qualify for a loan through the Canada Mortgage and Housing Corporation’s (CMHC) chattel loan insurance program. Financing of up to 95% of the purchase price is available through CMHC.
As a bonus, it can be used as leverage when purchasing modern mobile homes. Flexible payment plans are available monthly, weekly, or other frequently to suit your budget and schedule.
Remember that you may encounter specific challenges while financing your leased land mobile home. This is because lending preference favours mobile homes on privately held land rather than leased ground.
Alternative Methods of Financing a Mobile Home
Fearful of taking out a CMHC loan? Relax because there are many more choices open to you. Some other frequent decisions are:
Mortgage Refinancing and Investment Companies
Private Investors
You can invest in a pool of mortgages with the help of a mortgage investment corporation, a type of investment and lending firm registered with the province. In contrast, private lending refers to a single private lender providing funding for a single mortgage.
On the other hand, neither private lending nor MIC is without risk. For instance, private lending is challenging to track down and thoroughly evaluate. Further, the danger is elevated because of the reliance on one borrower.
However, the overall risk is lower because various parties invest money in a MIC. But when it comes to financing a mobile home, it’s out of luck. If you must choose, the MIC is your home’s safer and more secure option.
Where, therefore, can one search for money to put toward a land trailer lease?
Credit unions are the brief response. Because of the scarcity of leased land financing choices, mortgage brokers are in a tough spot, and credit unions are their only hope. Contact your local credit union, as you never know what might happen!
Conclusion
If you’re interested in outsourcing this function to a firm that has shown expertise in locating suitable lenders for such deals, contact us. Lionsgate will equip you with all the necessary information and streamline the entire procedure for you.
