As a piece of titled personal property, a mobile home is a depreciating asset, like a car. Once it is attached to land that is owned by the title holder of the home, it can be converted into real property, which makes it an appreciating and more secure asset. The home and land become eligible for a mortgage loan instead of a personal loan, which is easier to qualify for at better terms, like a lower interest rate. Additional savings come from the fact that mortgage interest is tax deductible. While every municipality has different procedures, there are some common requirements for converting a mobile home to real property.
Make sure the property you wish to place the home on is zoned for mobile homes. If the area is zoned residential for stick-built homes only, there may be a piece of land that has a home on it that is grandfathered for mobile home zoning.
Purchase land and have it deeded in your name or have the land transferred to your ownership with your name on the deed. There are a few states that will let you convert a mobile home that is placed on rented land with a long-term lease but this does create complications with selling either the land or the home.
Place the home on the land that is deeded to you. Be sure that the title of the home is in the same names as the property deed.
Put a permanent foundation on the home. This usually comprises removing the axles and wheels, then placing concrete blocks, bracing and underpinning under the home. The house is permanently attached to the foundation and permanent utilities, including water, sewer and septic, are put in place.
Make sure the finance company is aware of the conversion, if you do not own the home outright, and has given you written notification of their approval along with a copy of the title.
Surrender the title and file an affidavit with your county that requests a transfer of status in additional to any other forms your municipality requires. You may need to pay a fee for the conversion and to record the deed.
Confirm title cancellation with the local Department of Motor Vehicles and the county tax commissioner's office.
Check with the county government of the land the home is placed on for the laws and requirements for conversion. They may have some additional steps or conditions you will need to fulfill. Keep in mind that lenders may demand additional certifications and inspections prior to issuing a mortgage on the home and property.