Redman homes? I'm so clueless. Please help! :)

[Krissy]

Hi there -

Greetings from the Dairy State! My husband and I were about to purchase an 100 year old site built home [beautiful!], but too much had to be done to it to pass the FHA inspection. We are now going through Steenberg homes and thinking of getting a manufactured home. Of course, we are completely clueless, and need your help.

1. I've browsed through your threads and I haven't seen anything about REDMAN homes. Is this a reputable company? Do they produce quality homes?

2. Would you say that adding a basement would significantly "up" the resale value? We're wondering if it's worth the investment.

3. If Redman is not such a great name, what other homes in our price range [40 - 55k] could we get? We're moving to the Sheboygan, WI area. We are extremely satisfied with our salesman - he is a friend that I've known for years from church and would trust him with our lives. So we don't have to worry about that.

4. We're purchasing a brand new home. I understand that they would like 20% down. I've also been informed that brand new homes usually appraise for higher, therefore we could encompass the down payment in to the mortgage. Does this mean that we'd have to include 20% MORE? [we'd like to finance no more than 100,000 - 55k for the home, 25 k for the land, the rest for the well, the driveway, etc...] So, would the mortgage be for 120,000?!

Any advice or helpful hints would be appreciated! This is our first home and we're soooooooooo scared. We're putting it on an acre of land, by the way. This will prevent the home from depreciating, right?

Love,
Krissy

[Alan]

Since you are going through Steenberg, I would recommend Liberty Homes built in Wisconsin. Redman Homes have cheapened their homes to reduce production cost. Compare VALUES not prices. Most lenders want to see a down payment, even if the appraisal is higher. If you sign purchase agreements or loan documents that say you are putting money down, when really you are not, you are committing fraud along with the dealer. Don't be lured into that situation.

[Ron]

Please do NOT accept statements that your appraisal will be higher, whether a new home or not. The appraisal process is subjective and your final appraisal may be under, equal to, or over your cost. (Not often the case.)

The 20% down is conventional financing option. Talk with a bank loan officer about this land/home package and rolling all your costs into one mortgage. Since this home is going to be on a permanent foundation, your loan officer should have programs available through Freddie Mac or other government insured mortgage plans, which would require less down payment.

The amount you finance with a bank or mortgage company would be the total cost of your project less your down payment. Don't try to incorporate an estimated over appraisal amount as down payment. You will gain the benefit of your under appraisal when you sell your home in the future.

About the basement. Talk to a realtor in your area and ask his/her opinion on investing in a basement versus not having one. The realtor should be knowledgeable about the market values of the homes in your area and the dollar impact of adding a basement. Also, visit www.mobilehomerepair.com to see what is involved in adding a basement, from the MH perspective.