First time buyer worries

Vicki · Post by **Vicki** » Thu Jan 01, 2004 10:55 pm

A friend and I were planning on purchasing a used modular home together. Right off the bat, I know, it already sounds like a "don't do it", but there is a reason. We are getting in on a "really good deal"; no money down. However, the more I think and the more people I ask, and the more little-bits of info I get, the more and more and MORE leary I have become. The details are as follows:

manufacturer/model: Champion Infinity
Year Manuf: 1999
First sold: Feb. 2003
Amount still owing (from that loan): $54,000.
Doublewide, 3bed/2bath, detached 2 car garage, 24' x 56', located within a mobile home park which charges $325/mo for the space. Park is located in so. Calif. desert area, Desert Hot Springs (a.k.a. "Desperate" Hot Springs)

Terms of our "deal": Purchase Price: $54,950
Payments: $600/mo.
3 year loan @ 9.5% = balloon payment of $48,000+
Total monthly payment: $925

For those that don't know, the value of property in this city is much lower than surrounding areas. The monthly payments to purchase a house with LAND would run right about the same. But we are getting it for nothing down so.....
Did I forget to mention there are no phone jacks installed? Its also lacking a 220v plug (washing/drying machine), the furnace is missing some "component", therefore, no heat. (Yes, the desert gets cold.) Of course the temperature does reach triple digits in the summer (sometimes 120+ degrees) so an air conditioner (or swamp cooler) is a necessity. Guess what? Well, lets just hope we have a reeeeeeal coool summer because....

Any thoughts would be most appreciated!

jgn · Post by **jgn** » Fri Jan 02, 2004 7:56 am

As soon as you mentioned park that alone made it a bad deal. You stated you could get a house on owned land for about the same amount but there is no down payment on this one. You are paying a 3-4% premium on the interest, in five years you will have a house that you will have a tough time selling and probably take a loss, you are paying $40 per foot for a used home in a park that has not been taken care of, you mentioned the items that don't work and that is only what you can see. On your land you would have an appreciating asset at a lower interest rate on a fixed rate longer term note, there is a reason there is no down payment (they can't sell it otherwise).

Nancy · Post by **Nancy** » Fri Jan 02, 2004 10:26 am

WOW...No money down but you have no heat, no a/c, and no 220 for a dryer should you own an electric dryer. Plus no phone jacks so that you'd have to have someone come out and PAY them to install them. Also, the balloon payment would scare me. If you can't come up with financing (for whatever reason) at that time you lose the home and any money you put into it.
925 a month? Again..you can buy a house for that so why a manufacured home in a park? My son got into a new home in a developing tract for about 2000. (you know how those developers are.anything to get you in) so for what you're going to have to spend to get that m/h up to living standards, you could have bought a house.

I'm just getting started loloking at manufactured homes but even I can see that's a bad deal.
JMHO...Nancy

Art Rigsby · Post by **Art Rigsby** » Sat Jan 03, 2004 10:22 am

You missed the magic word: California. The house may not be a good deal but no matter where the home is placed in California, it will rise in value. I have a friend that paid $65,000 for a 1977 DW Golden West in a park. He feels he got a good deal.

Mac · Post by **Mac** » Sat Jan 03, 2004 1:45 pm

Not all of California is the same... that's not a true statement. I'd guess it would stay flat at best, out there in the desert. Yes, in the Bay Area or Los Angeles, you could pay over $100K for an older DW.

Buying a house with land is far better, given the situation I am reading above.

Art Rigsby · Post by **Art Rigsby** » Sat Jan 03, 2004 7:47 pm

I live in a MH in Lake County (Pop: 60,000), a semi-rural area 140 miles north of San Francisco. My home has increased in value $20K-$30K in 18 months. There are not many places you can live in California where a MH won't appreciate in value. Yea, if you live at the end of a dirt road 50 miles from nowhere, don't expect it increase.

Here's an ad from today's real estate section: 2bd/2ba 24X60 1975 MH on lot:
$110,000.

lacey · Post by **lacey** » Sun Jan 04, 2004 2:07 am

i would be concerned about the kind of house you're buying. have you checked out champion? is this particular mfg home constructed as you would like it to be.....of quality...and to the standard that you feel comfortable investing in?? the construction matters to me a great deal. nothing is a good deal if it is built poorly with poor quality materials.

just my little 2 cents.

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