For a lot of people entering the housing market in many areas, there are not a lot of opportunities.  For example, in the area that I live in, the housing values have skyrocketed pushing some first time home buyers out of the market.  This is especially true for those people in the lower middle class who cannot afford the expensive mortgage payments.

For these people, they can either rent or try to find something.  One overlooked housing alternative is used mobile homes.  You can find these homes with similar square footage as a traditional home, but at a price that is in reach of most people.  Even though these house trailers could be moved, in most cases they are a permanent fixture of mobile home parks.

One notable difference is the way you finance a mobile home.  You do not get a traditional mortgage like a regular house, but instead there are manufactured home loans available.  They take into account the different construction and there quick depreciation.  If the home owner can find enough to put down a 20% down payment, quite often they can buy their new home without private mortgage insurance.  Talk to your lender to find out if this can apply for you.

Mobile homes fill the gap in the housing requirement for those people who do not have a large income, or live in areas with high home values.  They do have special financing considerations, but they do make affordable starter homes.