And a great deal at that. Our scores are finally good enough to qualify for a manufactured home in the community we were hoping for. Now before you object, hear why I am excited. First off, it's a repo at a reduced rate. It books at $10,000 over what we are paying so while it might depreciate we are already ahead of the game. It's on a permanent foundation. Second, while it is on a rented lot at the moment, in 2004 the owner is going to divide the property, offering to sell each parcel to the owner of the home that resides on it. His approximate asking price (at the moment) will be less than if were purchased outside the community. The option to buy the land is included in our contract. Unfortunatly his approx. asking price is not nailed down yet. I guess you can't have everything. We get a 3 bed, 2 bath 1500 sq. ft. home, completely updated kitchen, new appliances, new carpet, energy efficient, 2 car attached garage in a desired area with great views, schools and access to everything. Our payment (with lot rent) is less than our rent on a 900 sq. ft. 2 bedroom apartment. That extra will go to the principal on the home. Once we own the land and home, we'll have some equity. And while I don't see us wanting to move for at least the next 5-10 years, we have other options if we can't sell. L/O being one of them, renting being another. We were going to try for FHA or the like but with my attorney collection still showing up twice (and the possibility that it'll be there for the next 3 years), it's just not possible to qualify and we don't want to wait. AND with that on my reports, even if we were approved for a conventional loan our interest rate would make our payment over $400 more than we can comfortably spend and they would want 10% down. $13,000 is something we just don't have. I know there are those that swear off manufactured homes here, but for our situation at present and our needs, this is the perfect solution for us. We originally didn't qualify for anything, but with the work I've done on our credit since coming here, we are in!! We can spread out, build a deck, I can paint the walls, we can have pets!!! Heck... even if by some fluke we don't ever get our money out of it, just those last benefits are better than an apartment anyday!!!
I agree. Congratulations. But I wouldn't put that extra money into the principal just yet. Put it away for a few months, maybe a year or so. True, you don't get great interest. But you'll have a nest egg. That way, if someone has medical bills, loses a job, etc, you have money in the bank to pay the bills and live on. True, you have equity in the house. But if you're not working, you're not going to qualify for a lone to get it out. So make sure you have 6-12 months worth of expenses where you can readily liquidate it. CDs are fine, have 3 months of money in the bank and then 90-day CDs coming due every three months, so you just cash them at maturity as you need them.
I forgot to add that repo/foreclosure homes are often a good deal, just make sure they're in good shape before you buy. I paid $66K for a $85K home back in 1984, and it was fine. Only a few minor repairs were required. But that's what you have to watch.
Thanks! Great suggestions. We spoke with the lender today and got more details. The land will sell for $45 - 50k. The house/land combo is being estimated at being worth $110,000 to $125,000 (we would get an appraisal of our own). Our total investment will be $81,000 when all is said and done. We figure that at that time if we take advantage of even half of the equity, we can put some in a savings and then pay off all the rest of our debt, leaving over $800 extra a month to put back into the house/land payment. It seems to put us in a really good position any way we look at it. I am excited.
1*It books at $10,000 over what we are paying. 2* so while it might depreciate we are already ahead of the game. 3* Our payment (with lot rent) is less than our rent on a 900 sq. ft. 2 bedroom apartment. That extra will go to the principal on the home. 4*Once we own the land and home, we'll have some equity. 5*I know there are those that swear off manufactured homes here, 6*if by some fluke we don't ever get our money out of it. cre8ivegrl ================== 1*Do you know how to turn that into tens of thousands over the life of the loan? 2*Don't worry about depreciation - concentrate on appreciation of the equity. 3*there could be a better place for that extra. 4*You already have equity. 5*that's for the missinformed. 6*If you do it right you can have the money and the home both. THE END ** *** ** LB 59 """""""""```~~~```'"""""""""
1*But I wouldn't put that extra money into the principal just yet. Put it away for a few months, maybe a year or so. True, you don't get great interest. But you'll have a nest egg. Hedwig ======================================= 1*Put it away longer than that at a greater return and one day the nest egg could Pay all the expenses on the home or enhance your retirement. THE END ** *** ** LB 59 ~~~~~~~~~~~~~~~~~~~~~
1*leaving over $800 extra a month to put back into the house/land payment. 2*It seems to put us in a really good position any way we look at it.cre8ivegrl ===================== 1*I would not put the 800 into the home. If you do that what will you have after the home is paid off? 2*And if you make the right moves you can take tremendous advantage of being in this position. Like I State in my signature'''''''''' `````````` '''''''''''' It's not what you spend it's how you spend it. ----------------------------- THE END ** *** ** LB 59 """""""""```~~~```'"""""""""
Congrats!! Is the home a mobile or modular (was it built on site with hookups, or was it put down on a slab and taken off the wheels?) I am interesting in buying some of these as an investment. thanks! and congrats again!
Congrats! It is nice to hear success stories. It makes it easier for those of us that are still working towards that home purchase. Thanks for sharing your story. Enjoy that new home!!! paw67
Thanks!! Nestea... it is actually on a permanent cement foundation. lbrown... I'd be really interested in hearing your ideas on this.
LBrown59... I'd be really interested in hearing your ideas on this. Shelley ================= Have you read the rule of 72 thread below? Also read my comment on the Buy more expensive house or invest thread started by fins2left . http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=343038#post343038 THE END ** *** ** LB 59 """""""""```~~~```'"""""""""
I am interested in buying some of these as an investment Nestea ============== Do you mean to use as rental property? """""""""```~~~```'"""""""""THE END ** *** ** LB 59
I'm curioius. Who is financing home only loans these days? I have one with Chase and one with Conseco that are going to have to be sold to settle an estate. Both are on rented lots. Conseco says they will allow qualifying assumption for about a $1500 assumption fee. Chase says the purchaser will have to seek new financing.
I'd like to use it as a rental, or sell it together with the lot it will sit on as a rent to own or lease option.
Thanks Doc!! lb.... I read the rule of 72. Interesting. What kinds of investing yeild a return of 19%? 15%??
