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Many manufactured homes take just a week to build. (Yes, a week!) Manufactured homes can be built so quickly because they’re made in a factory, a controlled environment. All of the materials and tradespeople are on hand, and the standard sizes of manufactured homes make for quick and easy builds.

The time it takes for the manufactured home to be placed on land is much longer, however. In this article, you’ll read about the basics of new manufactured homes, as well as the timeline for building and delivering a manufactured home. You’ll also learn the factors that affect the building timeline so you can be on the lookout for possible slowdowns.

What Is a Manufactured Home?

A manufactured home is built in a factory according to standards set by the U.S. Department of Housing and Urban Development (HUD). The home, which usually has one, two, or three sections, is transported to a dealer, plot of land, or manufactured home community.

Manufactured homes average a lower cost and shorter construction timeline than traditional homes, but homebuyers should be aware that manufactured homes may depreciate. Then again, depending on the local housing market and the home’s setting, a manufactured home might gain value.

How much does a new manufactured home cost? The average price nationwide was $131,200 in late 2025, with a single-wide averaging $85,400 and a double-wide $164,400, according to the Manufactured Housing Survey conducted by the Census Bureau and sponsored by HUD.

That helps to show why manufactured housing is gaining in popularity. In 2025, manufactured homes accounted for 10% of new-home starts. It’s the second most popular home type, after detached, single-family homes.

Recommended: What Is a Modular Home?

Timeline for Building a Manufactured Home

How long does it take to get a manufactured home? From placing an order to moving in, it could take about four months. That compares with 8-9 months for a traditional contractor-built home.

The site can be prepared, if needed, while the manufactured home is being built. If you need to develop raw land (i.e., put in your own utility connections, clear the land, or install a driveway), the process could take much longer.

Process of Building a Manufactured Home

Several factors help determine how long it takes to get a manufactured home, start to finish. Keep in mind that sales centers for manufactured homes may be able to offer help or coordinate the process.

Design, Model, and Floor Plan Selection: 1-3 Weeks

You’ll most likely start your manufactured housing journey by choosing your home model, floor plan, design, finishes, exterior elements, and other details of the home. This process can take a week or more.

It’s a good idea to start here, because you may have to wait until the factory is available to build your home. If you choose a model that’s already been built, you can save some time.

Financing: 4-8 Weeks

Before construction can begin on your manufactured home, you’ll need to get approved for a loan for the home and, if applicable, the land. You’ll submit your personal information, your income and employment, specs on your chosen manufactured home, who you’re purchasing the home from, and information about where you’re going to place the home. Going through the mortgage prequalification process can help you determine how much home you can afford.

Most of the time, financing options depend on whether the home is real property or personal property.

Some manufactured homes qualify for a conventional mortgage. Another option is a government-backed home loan. In most cases, the home must be permanently attached to a foundation and on land that you own or will own. That makes it real property. An exception is an FHA Title I loan, which can be used for the purchase of a new or used manufactured home on land you do or do not own. There are loan limits.

It’s also possible to finance a manufactured home with a large personal loan. It’s worth noting that a personal loan may have a higher interest rate than a home mortgage loan.

And a chattel mortgage may be used to finance a home that won’t be permanently affixed to the land.

Recommended: Credit Score Needed for Personal Loans

Site Selection: 1-4 Weeks

When it comes to placing your manufactured home, it could take time to find the proper setting. You’ll typically be faced with two options: lease or buy land.

Leased land: With leased land, you’ll pay a fee — usually between $600 and $900 per month — to place your manufactured home on a lot. Lots are typically close together and include utility connections and some community maintenance. Some may feature shared amenities, such as a swimming pool or park.

Purchased land: Many lenders offer financing for a manufactured home with the land. A lot in a community may already have a paved pad and utility hookups. If you need to install your own utilities, you may need to find a contractor to coordinate the exterior elements. Your manufactured home sales center may also be able to help with some of these details. A land loan on its own could take around a month to secure.

Permitting: 1 Week to Several Months

Setting a manufactured home on land requires a permit. Requirements can be found from your county or city. The permitting process can take a few days or a few months, depending on your locale, but be sure to submit all required documents and plans so you don’t face additional delays.

Site Preparation: 1-4 Weeks

Site preparation for raw land can include tree and rock removal, land grading, and driveway installation. This may also include connection of utilities such as water (or a well) and sewage (or a septic system).

Minimal site prep can be completed in less than a week, while more extensive site prep can take up to a month.

Construction: 1 Week

The factory environment makes for quick construction: a few days to a week. Materials, tools, and craftspeople are located in the same factory to increase efficiency. Standard sizes and finishes also account for the short construction timeline.

The manufacturer tests the electrical, plumbing, and other systems as your home nears completion.

Transport and Installation: 3-4 Weeks

After construction is complete, you may be wondering how long it takes to set up a manufactured home. While transporting your manufactured home will likely only take a few days at most, you may have to spend more time on the installation of the home.

Once the home has been transported to your site, it’s attached to ground anchors, and the utilities are connected. Then, if you desire, additional exterior elements, such as a porch or a garage, can be added. Customizations like this will take several weeks to complete.

Factors That Affect the Building Timeline

Type of Manufactured Home

The size and type of your home will affect the building timeline. A triple-wide manufactured home, for example, will take longer to build and will also require more site development. This is because a bigger manufactured home requires more extensive installations, such as a larger septic system.

Features of the Home

Some custom features, such as French doors, will take additional time to build into your home. But manufacturers say these features usually add only a little time to the process.

Backlog

Although the actual construction of your home may only take a week, you may need to wait for months for the manufacturer to begin construction due to a backlog.

The Takeaway

Securing financing, selecting a site, obtaining a permit, and developing the land all take much more time than the construction of a manufactured home. It could take four months from the time you order a manufactured home to stepping into your new home. Getting your financing plan in place can help keep things moving along smoothly to move-in day.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

How do you speed up the process of building your manufactured home?

If you want to build a manufactured home faster, you can shop around for builders to check on their availability and get your finances in order. Know which loans apply to the home’s setting (whether it’s on leased or owned land) and consider getting preapproved. You can also select a manufactured home that’s already built rather than design your own custom home.

Are manufactured homes cheaper?

Manufactured homes are usually cheaper than traditional homes. The average sales price for a new double-wide manufactured home (not including land) was $164,400 in late 2025, compared with the median sales price for a new single-family home, $397,600, around the same time, according to the U.S. Census Bureau and Department of Housing and Urban Development.

Do manufactured homes take a shorter time to build?

Manufactured homes take much less time to build than other forms of housing. Because the homes are built in a controlled environment, manufacturers can avoid weather delays and supply shortages and can schedule trades (such as plumbing) more efficiently. Everything is in one spot, and the standard dimensions of manufactured homes make construction efficient.

Photo credit: iStock/uptonpark

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q226-091

The cost to build a duplex varies widely, based on many factors, but the average approaches $402,000.

Understanding the nuts and bolts of constructing a brand-new two-unit structure can give you a better sense of how much it will cost to build a duplex.

What Is a Duplex?

Duplexes come in different sizes and designs, but they have some commonalities:

•   One building, one lot: The two units are in one building on the same piece of property.

•   Common partition: Duplex units have a shared wall or ceiling/floor. Occupants may share the yard space and a laundry room.

•   Mirrored size or layout: The two residences in a duplex are often mirror images of each other or the same size.

In general, buying a duplex will cost less than purchasing a stand-alone single-family home in the same area. And it might be cheaper to buy a duplex than build one, although you can customize new construction. Then there are people who convert a single-family home into a duplex. That could cost $150,000 on average.

Duplexes are in demand, thanks to owner-occupant financing advantages and potential rental income. They can also be found among HUD homes for sale. If you’re thinking of buying an existing home, you may be able to finance your purchase with a home loan. If you have an existing home to leverage for funds to invest in building a duplex, a home equity line of credit (HELOC) could be a suitable financing option.

Recommended: What Is a Duplex? Should You Consider Owning One?

Factors That Determine the Cost of Building a Duplex

Plenty of factors influence the cost to build a duplex, with some choices stretching the budget more than others.

Location

In more desirable areas, the price could increase significantly. Land prices in the Northeast tend to be the highest, with Rhode Island, New Jersey, and Delaware being some of the most expensive.

To learn more about the cost of living in different states, check out this page on the best affordable places to live in the U.S.

Materials and Labor

Depending on supply and demand, the cost of materials and labor can vary dramatically. If there’s a shortage of labor or supplies, duplex builders may pay a premium.

Building a duplex, or any property from the ground up, requires specialized labor, including these pros:

•   Architect

•   Structural engineer

•   General contractor

If the lot has a property on it, the buyer may need to pay to demolish it before building a duplex. If the lot is bare, adding utilities such as plumbing, electricity, and gas will factor into the cost of the build.

Size of the Duplex

In general, the larger the structure, the higher the cost. Also, the more rooms and the more complicated the layout, the higher the price. To figure out how big a certain property is, simply calculate the square footage.

Type of Duplex

The type of duplex you build can affect the project’s cost, with prices ranging from $115 to $240 per square foot. Here’s how the kind of duplex can influence its price tag:

•   Stacked: Stacking the units on top of each other will typically be the least expensive build, as it’s the most efficient. Owners may be able to save on labor, as the units will mirror each other and save time on plumbing.

•   One-story, side by side: This is likely a more complex build.

•   Two-story, side by side: This type of duplex is even more complex and has more square footage than the above options.

Miscellaneous Factors

Depending on the lot purchased or desired features, there could be additional costs associated with the build:

•   Demolition: If there’s a property on the lot, it can cost between $3,000 and $25,000 to tear it down.

•   Interior design: While not required, hiring an interior designer could help both spaces feel more livable and comfortable. The average interior designer costs between $50 and $200 an hour.

•   Modular duplex: A modular duplex, meaning buying a prefabricated home, costs $50-$100, on average, per square foot.

•   Garages: If the duplex owner wants a garage or two attached to the home, they may pay $16,000-$42,000 or more.

How Much Does It Cost to Build a Duplex?

With an understanding of the cost factors that can affect the budget for the duplex, now it’s time to address the big question.

Here are the overall costs and costs based on labor and square footage, using up-to-date national averages.

Overall Construction Cost

These are the high-end, low-end, and national averages to build a duplex:

By comparison, building a new house could cost an average of around $323,000. Meanwhile, the average existing single-family home in the country sold for $403,500 in late 2025.

Labor Cost

A large portion of the budget to build a duplex will go into labor and specialized professionals. Construction workers averaged about $40 per hour in 2025, though there’s a wide variation by region and type of labor. The overall cost of construction labor has increased steadily for more than a decade.

Cost by Square Foot

Here’s a breakdown of average cost per square foot (including labor) for duplexes:

•   1,500 square feet: $172,500-$360,000

•   2,000 square feet: $230,000-$480,000

•   3,000 square feet: $345,000-$720,000

•   4,000 square feet: $380,000-$880,000

•   5,000 square feet: $475,000-$1,100,000

Recommended: Investing in Duplexes: How to Do It and Is It Worth It?

The Takeaway

While building a duplex isn’t that different from building a single-family home, the process does include additional labor and considerations that can sway the budget dramatically. Size, style, and location can influence the cost to build a duplex.

Some people interested in building a new duplex will look for a construction loan, but if you’re a homeowner who’s eligible for a HELOC, that could be a good source of funding.

SoFi now offers flexible HELOC options to turn your home equity into cash. Access up to 85% of your home equity, or $350,000, to finance home improvements or consolidate debt. Competitive interest rates and repayment terms up to 20 years could result in lower monthly payments versus other loans. And the online application process is quick and convenient.

FAQ

Is it cheaper to buy or build a duplex?

Given the price of labor and materials, it’s often cheaper to buy a duplex than build one from the ground up. However, building new offers the benefit of customization.

How much do you have to put down to build a duplex?

A construction loan typically requires a 5%-20% down payment. A home equity line of credit or home equity loan could be used instead if you’re eligible.

How long does it take to build a duplex?

According to the U.S. Census Bureau’s latest Survey of Construction, it takes about 12 months on average to build a 2-4-unit residential building. However, this doesn’t include the time it takes to obtain permits.

Photo credit: iStock/Luckie8

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q226-092

If you’re seeking home affordability, you may be looking at the cost to build a manufactured home. As of December 2025, a new double-wide sold for an average of $161,200, according to the Manufactured Housing Survey conducted by the Census Bureau, whereas a new single-family home went for an average of $419,200 around the same time.

With such a gap, it’s easy to see the allure of manufactured homes. Yet the price of a manufactured home doesn’t tell the whole story. The land, site prep, any exterior additions, and financing all add to the cost to build a manufactured home.

If you want to take a serious look at what a manufactured home is really going to cost you, here’s what you should know, starting with what is a manufactured home. We’ll also cover the cost of manufactured homes by size, additional costs to consider when building a manufactured home, and how manufactured homes are financed.

What Is a Manufactured Home?

A manufactured home is built entirely in a factory and is attached to a permanent chassis. Once construction is complete, it’s moved to a lot of the owner’s choosing. The wheels are removed, and the chassis is placed on a foundation. A pier-and-beam foundation is most common in manufactured homes.

Assembly is completed by attaching the different sections, connecting utilities, adding any exterior elements, touching up the interior, and installing tie-downs.

Manufactured homes were called mobile homes before June 15, 1976, when the Department of Housing and Urban Development (HUD) building standards began. The HUD code regulates home design and construction, strength, durability, fire resistance, and energy efficiency.

Standard dimensions make manufactured homes easier to mass-produce in factories, resulting in quick construction timelines and lower costs.

Are these modular homes? No. Modular homes are also built in factories, but a modular home must meet the same building codes as a site-built home and has a permanent, standard foundation.

The Cost of Manufactured Homes by Size

Manufactured homes typically come in three sizes: single-wide, double-wide, and triple-wide. Each section is designed to fit down a highway, with the maximum width typically set at 16 feet. (Texas adds 2 feet, while North Dakota allows the width to exceed 16 feet in certain circumstances.) A single-wide runs 40-80 feet long.

Here’s what you can expect to pay for a new manufactured home as of December 2025, according to the U.S. Census Bureau and HUD’s Manufactured Housing Survey:

•   Single-wide: New single-wide homes usually range from 600 to 1,300 square feet and have an average price of $88,200.

•   Double-wide: Double-wide manufactured homes typically range from 1,000 to 2,400 square feet and average $161,200.

•   Triple-wide: At 2,000-3,400 square feet, these homes start at $200,000.

Anything smaller than 400 square feet may be considered a tiny house or a park model. Both are often classified as recreational vehicles and are not meant for full-time living.

Additional Costs to Consider When Building a Manufactured Home

How much a manufactured home costs may look deceptively low. However, there may be costs beyond the sticker price, especially if you want to place the home on raw land and need a land loan.

In addition to the home, you might have to pay for utility connections, exterior additions, taxes, delivery, and setup.

You’ll also want to pay attention to the rates and terms of loans you qualify for. Owning the land almost always opens the door to more attractive financing options.

Recommended: How Do Construction Loans Work?

Land Expenses

With a manufactured home, you have the option of renting or purchasing the lot.

•   Rent the lot: Expect a monthly rate of $200-$800. This doesn’t include additional fees from the homeowners association.

•   Buy the lot: Land costs depend on size and location. If you inherit land, you may have no cost at all. You might buy a small lot in a resident-owned park, but if it’s a co-op, you’re buying a share in the community.

If you’re buying unimproved land, you may also pay for permits, site clearing and prep, a driveway, drainage, a porch, a garage, a deck, or other exterior additions. These can add quite a bit to the cost to build a manufactured home.

Utility Connections

If you’re thinking of buying or building a house on raw land, you’ll need a way to connect to utilities. Common costs include:

•   Water or well: Expect this to be $5,000-$15,000.

•   Electric: This can range from $2,500 to $12,500. While some power companies can hook you up for free, in other areas, the cost can be $10,000 or more.

•   Septic: These costs can range from $3,500 to $15,000. Manufactured homes in rural areas will need a septic system if there’s no sewer connection.

Delivery and Setup

Most manufactured home dealers include the cost of delivery and setup when you purchase a home. Some, though, leave delivery and installation for the customer to arrange and pay for.

At a minimum, setup for a manufactured home may involve:

•   Hooking up utilities

•   Testing connections

•   Touching up interior elements, such as where two sections meet

•   Adding skirting

Exterior Additions

If you want a garage, porch, deck, or other exterior structure, you’ll need to add these costs as well. Prices are national averages, as per online cost guide service provider Fixr.com.

•   Porch: $15,000-$35,000 (but can be as low as $5,000 or as high as $50,000)

•   Garage: $23,000-$45,000

•   Deck: $9,000-$20,000

•   Landscaping: $8,000-$15,000

•   Driveway: $3,460-$6,910

Taxes

You may need to pay sales tax on a manufactured home purchased from a dealer.

This is in addition to the property tax you’ll need to pay each year if you own the land your manufactured home sits on.

Should You Build a Manufactured Home?

Proponents of manufactured homes tout their affordability, quality, and quick construction. It’s possible to build a manufactured home that’s much less expensive than buying a new construction of a traditional home.

The Consumer Financial Protection Bureau points out that whether the homeowner owns the underlying land affects many aspects of the financing “and can have major implications for the homeowner in terms of cost and security of tenure.”

If you plan to lease the land and feel comfortable absorbing any lot rent increases, then a new manufactured home could be a suitable choice. Some communities are downright upscale, offering pools, tennis, pickleball, golf, fitness centers, clubs for every interest, security, and camaraderie.

Do manufactured homes depreciate? Homes that aren’t high quality or affixed to a permanent foundation often lose value. A depreciating value also means homeowners may not be able to refinance.

But some data shows that well-maintained manufactured homes in attractive locations actually appreciate in value.

You might want to compare the expected total costs of different types of houses — including a townhouse, condo, and detached single-family home — with those of a used or brand-new manufactured home.

Financing Costs

When financing a manufactured home, you’ll likely run into several options offered at the sales center. Just be aware that financing may be different from lending for other kinds of homes. One thing that’s the same? Your credit score and debt-to-income ratio make a big difference in the interest rate you’ll be offered.

For one, manufactured homes typically have a repayment period of 25 years or less instead of the 30-year loan that you can obtain for a traditional home. This translates into higher monthly payments.

A new manufactured home attached to a foundation on land you own will be treated like a traditional home as far as financing is concerned. Lenders take into consideration how a manufactured home is titled and deeded. If it’s considered personal property, you may need a large personal loan. A personal loan may have a higher interest rate than a conventional mortgage.

A chattel mortgage is another option for personal property.

An FHA Title I loan could be another possibility. These loans are used to purchase a manufactured home, the lot the home will reside on, or both. Keep in mind that there are loan limits.

Recommended: Mortgage Calculator

Dream Home Quiz

The Takeaway

How much does it cost to build a manufactured home? Much less than a traditional home, but be sure you’re looking at all the costs involved. A lot of the total expense of owning a manufactured home will depend on whether or not you own the land.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

How do you cut down on costs for a manufactured home?

Buyers can cut costs by choosing a standard floor plan. They can also request less customization or opt for a manufactured home that’s already built.

How do you pay for a manufactured home?

Manufactured homes can be paid for with a personal loan, a chattel mortgage, a conventional mortgage, or a government-backed loan. Choosing the right option depends on the homebuyer’s situation.

What are the best customizations for a manufactured home?

Popular custom finishes include coffered ceilings, fireplaces, built-ins, and kitchen islands. Buyers also opt for upgraded appliances and fixtures, rain showerheads, freestanding tubs, and upgraded lighting.

Photo credit: iStock/Marje

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q226-095

Some buyers may be buoyed by the thought of living on the water full-time. Living in a floating house is unique, and building one may be an even more ambitious undertaking than building a houseboat.

What’s the cost of building a floating house? Read on to learn about the expenses, benefits, and considerations associated with these aquatic abodes.

Average Cost of Building a Floating Home

The cost to build a floating house will vary based on size, features, labor, and materials, with a 1,200-square-foot model usually starting at over six figures. These aren’t houseboats, which are self-propelled and free to move about. Nor are they usually tiny houses, though some are. Floating houses are often a lot larger than houseboats.

An alternative to building a floating home is to buy an existing one. A quick look shows listings ranging from around $200,000-$400,000 for a family-size floating home in the Pacific Northwest, costing well over $1 million throughout the West Coast, and costing a few hundred thousand for a home floating in the Florida sun. Buying or renting a slip will add to the cost.

In comparison, the cost to build a house of 1,200 square feet could be about $180,000 at $150 per square foot, not including the land.

Factors That Affect the Cost of Building a Floating Home

There are two foundational considerations when building a floating home: constructing the platform the home will rest on and finding a slip at a moorage for rent or purchase.

The cost of building a floating house can ebb and flow depending on who’s doing the building (whether it’s a DIY project or you need to find contractors) as well as the points mentioned below.

The Foundation

Traditionally, floating homes rested on giant logs, but over time, logs sag and sink, requiring pressure-filled barrels to shore them up.

Nowadays, these homes stay afloat using concrete hulls. One type of concrete hull is filled with foam, which creates buoyancy. Another type is empty, and like a bowl placed upside down in water, the space and pressure keep the home floating.

Size of the House

Generally, the bigger the home, the more expensive the build. And the larger the home, the more floats it will require, further adding to the cost.

Floating homes are limited by the size of the moorage, meaning buyers need to work within specific parameters. That means building upward, but only as much as the floats will allow.

Design and Materials

The more custom or high-end designs integrated into the home, the more the build could cost. From custom cabinets in the kitchen to nonstandard windows, these add-ons can carry a higher price tag.

Alternatively, floating homes can be prefabricated using a standard design, which often lowers the cost. Similarly, some companies are now using decommissioned shipping containers as building materials, which could cut down the total amount needed to build a floating house.

Another cost to keep in mind is the siding material. Floating houses are on the water and subject to the elements, which means the exterior materials must be resilient.

Interior Finishes

As with a traditional home, your choice of interior finishes can drive the cost of a floating house up or down. Opting for a prefabricated floating house may lower the amount spent on the interior.

Other Expenses of a Floating Home

Mooring and Insurance

Floating-home owners often pay a monthly moorage or berthage fee and a homeowners association (HOA) fee. The cost will vary by moorage but can be around $1,000 a month.

There could be a transfer fee, and insurance may be expensive. Marinas may also require liability coverage.

Utilities

Floating homes are permanently affixed to the moorage and hooked up to local utilities, including water, sewage, and electric or gas.

If a floating house is designed with efficiency in mind, the monthly cost of utilities will likely be similar to that of traditional homes in the area. But a lack of shade could mean higher bills for cooling.

Some floating homes rely on a plumbing pump to carry sewage out of the home, which could create a higher electric bill.

Furniture

The average cost to furnish a home is $16,000, but since a floating home resides dockside, it’s harder to transport large items to the property. That could mean hiring extra labor or larger delivery fees.

Additionally, owners of a floating home may be constrained by the dimensions of a smaller space, meaning custom or specialty furniture that fits in with and into the home.

Financing Your Floating Home

In some states, a floating home is considered personal property, so it can’t be built or purchased with a traditional home mortgage loan. A local bank or credit union may offer a floating home loan with at least 20% down payment and at a higher rate than a conventional home loan. An inspection, at your expense, will likely be required to see if the home is in adequate shape to qualify.

Another option is a personal loan, which provides fast cash but usually has a higher rate than a secured loan.

Options for homeowners who have built sufficient home equity and are dreaming of a floating home include a home equity line of credit (HELOC), a home equity loan, or a cash-out refinance.

Recommended: HELOC Monthly Payment Calculator

How Long Do Floating Homes Last?

With regular upkeep and maintenance, owners of floating homes can expect their property to last 30-50 years before requiring rebuilding or refurbishment.

Pros and Cons of Living on a Floating Home

If you hear the siren call of the floating-house lifestyle, it’s a good idea to weigh the good vs. the not-so-great before taking the plunge.

Pros

Some possible benefits for floating-home owners include:

•   Tight-knit community: Dock living means living close to neighbors. A floating community could be a great fit if that’s your thing.

•   Good choice if downsizing: Minimalists, retirees, and others with an affinity for the water may find a floating home a chance to downsize.

•   Doesn’t require an engine: As opposed to boathouses, floating homes are permanently docked, so buyers or builders don’t need to factor in the costs of a motor. And there are opportunities to go even greener if you build a floating home: One DIY builder crafted a floating home on a lake in British Columbia that has a pellet stove, solar power, a composting toilet, and an evaporation gray-water system.

•   Water views all the time: If you prioritize proximity to nature, you can’t beat living on the water. A cup of coffee or a glass of wine is always accompanied by a pretty vista.

•   May provide less expensive housing: You may be able to build a floating home for less than a single-family home, especially in some of the hot spots for floating homes.

•   Potential for tax breaks: In some states, floating homes are considered personal property, not “real property.” In these states, owners pay personal property taxes instead of regular annual property taxes. Also, interest paid on a loan or HELOC for a floating home as a first or second home could be included in the mortgage interest deduction if you itemize. (It’s smart to consult a tax advisor about this matter.)

Cons

Now the potential downers:

•   Extra costs beyond the build: Moorage or HOA fees can range from a few hundred dollars to $1,000 a month. Insurance can be pricey.

•   Limited locations: Floating-home communities are uncommon, meaning vacancies are even less frequent. It could be hard to find a dock community to take a floating home to, or it could mean waiting for a spot.

•   Weather damage: Constant exposure to saltwater or freshwater can take a toll on a floating home. That can translate into more frequent repairs and replacements, adding to the cost of upkeep.

•   Financing challenges: It can be hard to secure financing to construct or buy a floating home.

Recommended: Tips for Buying a New Construction Home

The Takeaway

Building your own floating home? A few do take on that challenge, which can pay off in terms of cost and satisfaction. Others will look into buying a floating house that’s already berthed, as finding moorage can be a challenge. Although a floating house usually can’t be financed with a typical home loan, there are other ways to pay, including a floating home loan or a HELOC that’s based on your equity in a home you already own.

SoFi now offers flexible HELOC options to turn your home equity into cash. Access up to 85% of your home equity, or $350,000, to finance home improvements or consolidate debt. Competitive interest rates and repayment terms up to 20 years could result in lower monthly payments versus other loans. And the online application process is quick and convenient.

FAQ

Can you live permanently in a floating home?

Yes. Floating homes can be permanent residences. They’re designed and built to be lived in, just like a regular house on land.

Do you have to pay property tax on a floating home?

Floating-home owners don’t always have to pay property taxes. It varies by location, with some states considering a floating home to be personal property rather than “real property.”

Where can you get a loan to build a floating home?

Floating homes don’t usually qualify for traditional mortgages. Options include a floating-home loan from a small pool of lenders, a personal loan, a home equity line of credit, a home equity loan, or a cash-out refinance.

Photo credit: iStock/Roman_Makedonsky

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q226-093

A 20-year mortgage is far less common than a 30-year mortgage, but when you want to pay a lower rate and save a substantial amount in interest, it’s worth considering a 20-year mortgage.

That is, if you can consistently afford the higher mortgage payments.

Get ready to learn all you need to know about 20-year mortgages, including what is a 20-year mortgage and how it compares with a 30-year mortgage. Explore why people choose a 20-year mortgage and the advantages and disadvantages of a 20-year mortgage.

What Is a 20-Year Mortgage?

A 20-year fixed-rate mortgage is a home loan whose total financing costs are calculated over a repayment term of 20 years.

Homebuyers and refinancers choose their mortgage term. The 30-year fixed-rate mortgage is the most popular. However, the 15-year fixed-rate mortgage often shares the spotlight.

The 20-year mortgage gets less attention, but a 20-year home loan may be a happy medium for homeowners who want lower monthly payments than a 15-year mortgage but who want to pay off the loan more quickly than a 30-year mortgage.

Why Are 20-Year Mortgages Less Common Than 30-Year Mortgages?

When it comes to a 20-year vs. 30-year mortgage, why don’t more borrowers choose the shorter term? Because the monthly payments are higher.

A 30-year term makes a home more affordable on a monthly basis, even though homeowners will pay more over the life of the loan than they would over 20 years.

Buyers considering a 20-year home loan may also need to lower the top end of their house-hunting price range so they can qualify for the mortgage.

In exchange for saving a sizable amount by financing with a 20-year loan, you may have to forgo perfection, buy a starter home, or downsize.

Recommended: How Much of a Mortgage Can I Afford?

Why People Choose 20-Year Mortgages

People who choose a 20-year mortgage do so because they’ll pay much less in interest than they would on a 30-year mortgage. That benefit stems from a shorter term and a lower interest rate.

Generally, the longer the term, the higher the rate on conventional conforming loans, FHA and VA loans, and jumbo loans.

An amortization table reveals how much interest is paid on a mortgage over the loan term. When you decrease the length of your mortgage in exchange for a higher monthly payment, the savings are substantial.

It might be shocking to see more than $240,000 in interest savings by financing a home with a 20-year mortgage.

If you can swing it, good deal! Keep in mind, though, whether you’re a Gen Z homebuyer or a retiree, that a 30-year mortgage may give you wiggle room with your budget if you need it. And you can always pay off a 30-year mortgage early if you make extra payments toward the principal.

20-Year Fixed vs an ARM

An adjustable-rate mortgage (ARM) may look good to a homebuyer who’s planning to stay put for just a few years. The introductory rate for a conventional ARM, jumbo ARM, or FHA or VA ARM may be lower than that of a fixed-rate mortgage.

Whether you’re interested in a 5/1 ARM, whose rate is fixed for five years and then will adjust once a year, a 7- or 10-year ARM, or any other adjustable-rate loan, you’ll want to know how long you plan to stay in the home and fully understand the rate adjustments and caps.

Recommended: Mortgage Payment Calculator

Advantages of a 20-Year Mortgage

These are some of the benefits of a 20-year fixed-rate mortgage:

•   Fixed payments over 20 years: Your payment will be the same each month for the life of the loan.

•   Lower interest rate: 20-year mortgages typically have a lower interest rate than their 30-year counterparts. Lenders reward a shorter payoff date with a lower interest rate.

•   Less interest over 20 years: You’ll avoid 10 years of interest by paying on a 20-year loan instead of a 30-year loan.

•   Faster mortgage payoff: A 20-year mortgage is scheduled to be paid off 10 years sooner than a 30-year mortgage.

•   Faster equity: Equity is built faster with a 20-year loan than a 30-year loan. The sooner you can pay more on principal (which a 20-year loan naturally does), the sooner you’ll gain home equity.

•   Affordable monthly payments: You may find that the payments for a 20-year loan are comfortable and doable.

Disadvantages of a 20-Year Mortgage

Here are some drawbacks of a 20-year loan:

•   Higher monthly payment: A 20-year vs. a 30-year mortgage will result in a higher monthly payment. This may make it more difficult to qualify for other financing, such as a loan for an investment property or a car.

•   Stricter qualifications: Because the monthly payments are higher, a 20-year home loan may be harder to qualify for than a 30-year loan.

•   Lower target price: If you’re in the home-buying process and want to finance your new purchase with a 20-year loan, you may need to shop for a home at a lower price point or in a more affordable location.

The Takeaway

If you’re looking for a home loan that could save you a significant amount of money in interest, a 20-year mortgage might be right for you — if you can handle the higher monthly payments without fail. If you need lower monthly payments, a 30-year mortgage may be the better move.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

20-year mortgage vs 30-year mortgage: Which has the better interest rate?

Decreasing the amount of time you take to repay your loan will help you save on interest costs in a big way. First off, the interest rate you’ll pay is typically lower. Second, your overall interest cost is much lower because you’re avoiding the extra 10 years of interest that you would pay on a 30-year loan.

Is it harder to get a 20-year or 30-year mortgage?

A 20-year mortgage is harder to qualify for because the monthly payments will be higher for the property you want to purchase. If you’re determined to use a 20-year loan, you may find you’ll qualify for a lower purchase amount to get the numbers to work for your monthly budget.

What are some advantages of a 20-year vs a 30-year fixed-rate mortgage?

There are some benefits to a 20-year fixed-rate mortgage vs. a 30-year fixed-rate loan, including paying off the mortgage sooner, maintaining fixed payments over 20 years, and paying less interest over the loan term. A 20-year mortgage also typically has a lower interest rate than a 30-year loan.

Photo credit: iStock/ArLawKa AungTun

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

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