Taxes and Utility Hookups: Additional Costs to Consider When Buying a Manufactured Home

Are you planning on buying a manufactured home in central Alabama or the surrounding area? Did you consider the additional costs you will have to pay? 

Buying a manufactured home entails much more than just finding the right home and closing the deal. There are several other costs to consider over and beyond the home’s purchase price, such as taxes and utility hookups. We do not want you to be caught off guard, so we have laid out what you need to know about the extra costs of your manufactured home.

How are manufactured homes taxed?

We understand that taxes can be a pretty complex topic to get your head around, but you cannot afford to overlook them. Here’s what you need to know about taxes on manufactured home:

Usually, homeowners pay the property taxes to the local government. The tax amount is calculated based on the property’s value. However, things are a bit different when it comes to manufactured homes. Who bears the responsibility of paying the taxes on a manufactured home is dependent on these two scenarios: 

1. When you own the land that you have placed your manufactured home on:

In this situation, you have the option of mortgage escrow. This is the provision to pay your property tax, along with your mortgage payments, to your lender. The lender is then responsible for submitting the tax to the government from the escrow account. 

2. When you locate your manufactured home on a rented property:

If you are placing your manufactured house on a rented property — either you rent the land or place it on a lot in a manufactured home community — then the process will differ. In this case, your state or county laws will decide who pays the property tax. Some states require the land owner to pay the taxes, whereas others require the homeowner to pay the taxes.  

It is worth noting that if your manufactured home is not placed on the land permanently, you may use the mortgage escrow option and pay the home’s tax directly through your lender. 

Utility hookup charges

Though all manufactured homes come with the necessary heating, electrical, and plumbing systems, you will have to spend a pretty penny connecting them to the water, sewage, and electrical facilities. 

If you place your home on a rental property, make sure to choose an area with a sanitary sewage system, ready access to electric power, and government-supplied water lines. Otherwise, you will have to spend even more on these facilities; getting an electric connection, drilling a well, or installing a septic tank will be expensive. 

You can contact your local public utility division to get more information about the utility hookups in your area. 

Are you looking for affordable manufactured homes in Central Alabama or the surrounding areas? 

We can help! At Jaco Sales, LLC., we offer a large selection of high-quality manufactured homes fit for every need and budget. If you live anywhere in Montgomery, Tallassee, Pike Road, Tuskegee, Shorter, Auburn, Opelika, Prattville, Wetumpka, Millbrook, Troy, Brundidge, Clanton, Hope Hull, Highland Home, Greenville, Alexander City, Sylacauga, or Childersburg, call us at (334) 283-1017 or fill out an online form to speak with one of our representatives.