A Complete Guide to Purchasing a Mobile Home in Nova Scotia

Purchasing a mobile home in Nova Scotia offers an affordable and flexible housing option for many people. Whether you are a first-time buyer, downsizing, or have a limited budget and pre-approval limit, mobile homes provide a practical solution. This guide walks you through the essential steps, considerations, and tips to make your mobile home purchase smooth and successful as they do carry their own rules and regulations with mortgage lenders. Lets talk about what most people do not know!

Financing Your Mobile Home

Here is where it gets fun. Lets talk about the dirty facts when it comes to financing. With mortgaging a mobile home there are 2 lenders who we can use: RBC and Credit Unions. However, RBC does not work with brokers and do require a bank appointment. Great part about a broker - you can call me at 7 or 8pm on a Saturday night and we will do an application.

These lenders differ from traditional home mortgages in a number of ways:

• We have to take into account lot fees & property taxes in the ratios of what you can be approved for

• Interest rates will be higher. You're looking at 6.49% on leased land through Credit Union

• There is only one mortgage insurer company who will do leased land limiting options

• If you have poor credit, unfortunately these homes will not work for you

  • Plan B lenders do not loan on leased land

  • Private lenders do not do mobile homes

  • Plan A lenders require a credit score of 650 and higher

  • Debt ratios need to be 44% maximum

    
    
    
    

Mortgage Insurance

Here is an item that often gets missed and is not well known. If you are putting less than 20% down on the purchase - which is understandable, it is hard to save in this current economy - you require mortgage insurance. With that in mind, CMHC will only give a lifespan of mobile homes 40 years. So if the mobile in question is 20 years old you qualify for a 20 year amortization. Regardless of first time home buyer.

What this means for you? Shorter terms mean higher payments and higher ratios.

UNLESS you are able to provide documentation from the seller with dates on structural updates:

1. Roof

2. Siding

3. Deck

4. Electrical

5. Plumbing

Cannot include anything cosmetic such as flooring and lighting or upgraded heating like heat pumps.

Make sure we know this all up front as we do not provide pre-approval letters on mobile homes due to all these considerations. We will work one on one with Credit Union to ensure we are a done deal with ratios before moving forward.

Challenges to Consider

• Financing difficulties: Loans can be harder to secure or have higher rates.

• Park fees: If in a mobile home park, monthly fees apply.

• Resale market: Limited compared to conventional houses.

  
  

Being aware of these challenges helps set realistic expectations.

Tips for a Successful Purchase

• Get a professional inspection before buying.

• Understand all costs including land, utilities, and fees.

• Review contracts carefully, especially for park leases.

• Plan for future maintenance and upgrades.

• Talk to your friendly local broker!

  
  

Taking these steps will help you find a mobile home that fits your lifestyle and budget.