Considering mobile home purchase

[Jen]

Hi,

I am a stay at home mom seriously considering divorce. We have a nice home that will easily sell, but all the equity will be used to pay down debt and atty fee's. Considering that I will have to be on public assistance, can I get into a mobil home and what do I look for when I purchase a mobile home. I can not go back to apartment living, unless that is my only option. Then there is the possible taxation on the money earned if it does not go toward the loan on another home.

Thank you, Jennifer

[Mac]

Will you HAVE to be on public assistance? If you do, I would imagine you will not qualify for a very large loan. Also, a loan on a manufactured home that is not on land will carry a higher interest rate, due to higher default rate. A home in a park with space rent is about the same as renting an apartment, in most places; you won't be getting much appreciation since you don't own the land. And you will have the home to maintain.
By taxation I'm assuming you mean tax on income, if you don't have mortgage interest to deduct. Frankly, the amount of money you would be talking about paying in interest would not amount to much more than the standard deduction (you would be filing as Head of Household, which carries a higher deduction).

My guess is that if you are going to be on public assistance and want a home, you'll need to find an inexpensive one that you can fix up. Also, Habitat for Humanity, or similar programs, might be able to help. Another site for you, if you're handy, is mobilehomerepair.com. There are many folks over there who have taken older places and fixed them up.
Good luck to you,
Mac

[Mac]

Will you HAVE to be on public assistance? If you do, I would imagine you will not qualify for a very large loan. Also, a loan on a manufactured home that is not on land will carry a higher interest rate, due to higher default rate. A home in a park with space rent is about the same as renting an apartment, in most places; you won't be getting much appreciation since you don't own the land. And you will have the home to maintain.
By taxation I'm assuming you mean tax on income, if you don't have mortgage interest to deduct. Frankly, the amount of money you would be talking about paying in interest would not amount to much more than the standard deduction (you would be filing as Head of Household, which carries a higher deduction).

My guess is that if you are going to be on public assistance and want a home, you'll need to find an inexpensive one that you can fix up. Also, Habitat for Humanity, or similar programs, might be able to help. Another site for you, if you're handy, is mobilehomerepair.com. There are many folks over there who have taken older places and fixed them up.
Good luck to you,
Mac

[rmurray]

Complete public assistance money will not qualify you for a home..even with good credit..Child support can be counted..SS income can be counted..but food stamps and AFDC cannot...If you are working and still qualify for section 8 housing..the FHA has a special finance program for those with clean credit...they will add the section 8 money to your income for qualifying purposes..count your child support...and any income you have from other sources..the section 8 money will pay your payment after you get the home...This will have to be a home and land...

It seem to me your mention of taxes has to do with the sale of the house...there is NO tax on the profits of the sale of a house anymore...One of the Bush tax cuts..

[Bill Fry]

There are no taxes on the profit of a sale of a house if you lived in it at least two years
before you sold it.Thre are also a few other details but the majority of folks don't have to be concerned with them.That law changed in 1997 and was tweaked in 2002.