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Financing

Financing

Breaking Down the Numbers

You’ve found your ideal destination and you’re ready to buy. Now what? Check out what types of financing may be available to you and work with one of our home sales experts! 

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For those of you who would prefer not to deplete your nest egg, a number of entities provide great financing options for manufactured home purchases.

Although you might feel more comfortable selecting a financial institution located in your hometown, we always recommend you contact several institutions within the area you’re looking to purchase based upon their knowledge and experience in that specific region. 

Because the market differs from place to place, and state to state, local area financial institutions are more inclined to get you a lower loan rate because of their relationship with the local economy. And in general, these local institutions tend to better understand the values of the 55+ manufactured home communities, and homes within these communities.

Depending on the location of your community and home, and how close it is to the coasts, homeowner’s insurance rates will vary. We suggest you reach out to a local insurance agency within close proximity to your new home since they will better understand the policies that are best suited to that particular location.

If you choose to purchase a new manufactured home, the stringent building codes that make these homes sustainable to wind gusts of over 120 MPH will actually lower the cost of insurance since less risk is present!

Yes. Many folks forget that there is still a monthly maintenance fee if you choose to reside in a lifestyle community where you purchase your land. The fee is based upon the amenities and the quality of life offered to the residents.

Cove Communities actually offers an in-depth overview of the cost to lease the land in a 55+ community over a 10+ year period versus purchasing it upfront. Depending on several circumstances, leasing will almost always save you money — many thousands of dollars in fact!

Yes, you are responsible for 100 percent of the real estate taxes when you purchase the land. However, in a lease land scenario, you forgo this full burden, instead paying a percentage of the taxes, which are included in your monthly lot/lease fee payment.

Lease fees vary considerably from community to community, so it’s very important to investigate what bang you get for your buck.

Cove’s communities are very competitively priced considering their convenient locations, the lifestyles they offer, and their value-added features, which include luxury, resort-style amenities like expansive clubhouses, swimming pools, and other outdoor recreation; planned activities; professional on-site management;  enforcement of community standards; street lighting and maintenance plus sidewalk and street repairs; common area landscaping; maintenance of all common areas including clubhouses, pools and fitness centers; community access control; and so on. In some of Cove Destinations’ communities, the monthly fees may also include lawn maintenance, trash removal, homesite irrigation maintenance, and then some.

In general, the cost of utilities (electric, water, sewer and cable/internet) are typically the responsibility of each homeowner; paid directly to the service provider.

Cove Communities’ manufactured home communities offer “Guaranteed Leases,” which ensure that lease fees can only increase once per year at a maximum percentage outlined in the Community Prospectus. In the State of Florida, for instance, each manufactured home community must register their Guaranteed Lease, which then provides homeowners protection under Chapter 723.

On the other hand, conventional home communities (i.e., stick built, single family, deed restricted) are not regulated by the state in the same manner as manufactured home communities. This means they have less protection against the frequency and amount of their fee increases.

Yes, in a leased land community you pay a fee to lease the homesite. As we reviewed above, this fee covers a number of amenities, activities, maintenance, and lifestyle offered.

HOA fees, however, are collected by communities that feature an association of homeowners who act as a watchdog on behalf of the residents. Every community does not necessarily have a Homeowner Association (HOA) present.

In a leased-land manufactured home community that has a representative HOA, the fees are generally nominal and paid by only those residents who wish to become an active member of the HOA. (Many of Cove’s Communities have an active HOA present. The member dues range from $15 to $65 per year.)

The value of any home is indicative of how well it’s been maintained and the community in which it’s located within, and surrounded by. People want to buy and reside in homes — whether pre-owned homes or brand new — in nice neighborhoods. The same scenario plays out in manufactured home communities. 

Those well-planned communities that are ideally located for shopping, restaurants, and entertainment, as well as offer beautiful landscapes, popular recreational facilities, top management, and maintenance programs are the successful communities where manufactured homes appreciate and cultivate value throughout the years.