Wondering how much cash you need to close on a mobile or manufactured home in Mobile? You are not alone. Closing costs can feel confusing, especially because manufactured homes can be titled and financed differently than site-built homes. In this guide, you will learn what typical buyer closing costs include in Alabama, Mobile County specifics to expect, real examples of cash to close, and practical ways to save. Let’s dive in.
What closing costs include
Lender fees and points
Most buyers pay lender charges such as an origination fee, application or processing fees, and underwriting fees. You may also see optional discount points if you choose to buy down your interest rate. Manufactured home appraisals are common and can be more specialized, with typical appraisal fees ranging from about $300 to $900 or more depending on the home.
Title, closing, and recording
Expect a title search or exam, closing or settlement fee, and title insurance. If you have a mortgage, the lender’s title policy is usually a buyer cost. An owner’s title policy protects you and is often seller paid in many Southern markets, but this is negotiable. You will also see county recording fees for the deed and mortgage. Alabama does not impose a statewide transfer tax similar to some states, though local recording charges still apply.
Prepaids and escrow setup
Most lenders require you to pay the first year of homeowners insurance at closing, plus prepaid interest from the closing day to your first payment date. You will also fund an escrow account for taxes and insurance, usually with a cushion of about two months’ worth. Property taxes are prorated between buyer and seller for the year of sale.
Insurance and inspections
Homeowners or hazard insurance is required at funding. In coastal Mobile County, wind or hurricane coverage and flood insurance may be required and can increase premiums. If the home is in a manufactured home park or on a leased lot, the insurer or lender may have additional conditions.
Mobile home specific items
If the home is still titled as a manufactured home through the state, budget for titling and registration transfer fees. If you and the seller plan to convert the home to real property by affixing it to land, there can be legal or recording costs for that process. If the home is in a park, there may be lot rent prorations or park approval fees.
Personal vs. real property
Manufactured homes in Alabama fall into two categories.
- Titled personal property: The home is titled like a vehicle through the state. Financing may involve a chattel-style loan or FHA Title I program. Closing steps include title transfer and different tax treatment.
- Real property: The home is permanently affixed to land and conveyed with a deed. This allows more traditional mortgage products, such as conventional, FHA Title II, VA, or USDA loans when eligible.
Converting a titled home to real property requires proof of permanent affixation and specific filings. This change can affect loan options, insurance, recording, and taxes. Confirm exact procedures and fees with Mobile County offices and the appropriate Alabama agencies.
Mobile County specifics to expect
- Property taxes: Alabama’s effective property tax rates are relatively low overall, but your bill depends on local millage in Mobile County and any city or district levies.
- Recording and closing: Local title companies and real estate attorneys typically handle closings. Recording fees are set by the county, and document requirements can change, so it is smart to confirm current charges before closing.
- Insurance exposure: Mobile’s Gulf Coast location means flood and wind coverage can be significant. Get quotes early because premiums also determine how much you must deposit into escrow.
- Lender availability: Manufactured home loans are offered by a mix of national, local, and specialized lenders. Eligibility and costs depend on the home’s classification, age, and HUD compliance.
Typical cost ranges
- Total buyer closing costs, not including your down payment, often land around 2 to 5 percent of the price for traditional homes. On lower-priced manufactured homes, fixed fees like appraisal, title, and recording can make the percentage higher.
- Appraisal: about $300 to $900 or more.
- Lender fees: roughly $500 to $2,000 or 0.5 to 1.5 percent of the loan amount, depending on the lender.
- Title, closing, and recording: several hundred dollars to more than $1,000, with title insurance premiums scaling with price.
- Prepaids and escrow: first-year insurance at closing plus escrow deposits. In Mobile County, wind and flood coverage can raise this amount.
Cash-to-close examples
Below are illustrative scenarios to show how costs can stack up. These are examples only and not quotes.
Example A: Titled home, lower price
Purchase price: $25,000
- Lender fees: $1,000 to $2,000
- Appraisal: $400 to $700
- Title, recording, closing: $400 to $800
- Owner’s title policy: $200 to $500
- Prepaids and escrow: insurance $400 to $1,000, escrow $70 to $200
- Titling transfer: $50 to $200
- Approximate cash to close, excluding down payment: $2,500 to $5,500
Example B: Affixed home on land
Purchase price: $60,000
- Lender fees: $900 to $1,800
- Appraisal: $500 to $900
- Title, recording, closing: $600 to $1,200
- Owner’s title policy: $600 to $1,200
- Prepaids and escrow: insurance $700 to $1,500, taxes and reserves $200 to $800
- Approximate cash to close, excluding down payment: $3,500 to $8,000
Example C: Modern HUD-code home on lot
Purchase price: $150,000
- Lender fees: $1,500 to $3,000
- Appraisal: $600 to $1,100
- Title, recording, closing: $800 to $1,800
- Owner’s title policy: $1,200 to $2,500
- Prepaids and escrow: insurance $1,000 to $3,000, taxes and reserves $1,000 to $3,000
- Approximate cash to close, excluding down payment: $7,000 to $15,000
Key takeaway: Fixed fees and insurance can take up a larger share of the budget on lower-priced homes. Flood and wind coverage can shift totals in Mobile County, so get quotes early.
Who usually pays what
- Seller typically pays: their side of closing costs and real estate commission. In many Southern markets, the seller often pays for the owner’s title policy, but this is negotiable.
- Buyer typically pays: lender-related fees, appraisal, lender’s title policy, recording fees, prepaids, and escrow deposits.
- Negotiable items: seller concessions toward buyer closing costs, who pays the owner’s title policy, and any costs tied to converting a titled home to real property. Concession limits depend on the loan program.
Ways to reduce out-of-pocket costs
- Shop lenders and compare Loan Estimates side by side.
- Request insurance quotes early, including wind and flood, to avoid surprises.
- Negotiate seller concessions in your offer, within your loan program’s limits.
- If allowed, roll certain closing costs into the loan, knowing it increases your monthly payment.
- Ask about assistance options through state or local programs that serve qualified buyers.
- If it is customary for the seller to pay the owner’s title policy, keep that in your contract.
Mobile County buyer checklist
- Get prequalified and ask for a Loan Estimate.
- Confirm if the home is titled as personal property or classified as real property.
- Obtain homeowners, wind, and flood insurance quotes before you go under contract.
- Ask a local title company for a sample closing statement for a similar Mobile County purchase.
- Look up the latest property tax bill and check whether a flood zone applies.
- If a title conversion is planned, clarify responsibilities, timing, and costs in writing.
Budget for Mobile-specific items
- Flood insurance if the property is in a designated flood zone.
- Higher wind or hurricane coverage due to Gulf Coast exposure.
- Legal or recording fees if converting a titled manufactured home to real property.
Ready to run the numbers?
If you want a clear estimate tailored to a specific Mobile County property, request a Loan Estimate from at least two lenders and ask a local title company for a preliminary closing worksheet. Then we can walk through the details together, line by line, so you feel confident before you write an offer. When you are ready, connect with Jessica Jenkins-Nguyen to Schedule a Free Consultation.
FAQs
Do Alabama buyers pay a transfer tax on mobile homes?
- Alabama does not impose a statewide real estate transfer tax, but county recording and document filing fees apply. Confirm current Mobile County fees before closing.
How does title status affect my loan?
- Titled personal property often uses chattel or FHA Title I loans and has different closing steps, while affixed real property can qualify for conventional, FHA Title II, VA, or USDA financing when eligible.
Who pays for the owner’s title policy in Mobile County?
- In many Southern markets, sellers commonly pay the owner’s title policy, but it is negotiable and should be set in the purchase contract.
What insurance costs should I expect at closing in Mobile?
- Expect to pay the first-year homeowners insurance premium plus escrow deposits. In coastal areas, wind and flood coverage can materially increase the total.
How much are buyer closing costs for manufactured homes?
- As a general guide, plan for about 2 to 5 percent of the price, but lower-priced homes can skew higher as fixed fees and insurance take a larger share.
