clayton homes question/among other questions

[tiffani]

Me and my husband own about an acre in tyler, texas. we want something simple and cheap as my husband plans to start a produce company, family tradition.

anyway, we live in dallas and with my work schedule there is no way we can really get down to tyler to go to all those dealerships.

we went to clayton because they are right here, two exit down from where we are now.

they are trying to sell us the freedom model for 32,885, but that is with moving and all the fees included.

this is virgin land, so I figure there will be another 10,000 for the well and septic system.

my question is are we getting screwed?

my husband has about b plus credit, but he was laid off in jan.

my credit about c plus, and they are giving us no money down.

I want to keep the payments down to under $300, but don't think I can because they aren't sure how long the mortgage will be.

my questions

how long is a standard mortgage for manufactured homes?

what is the average rate for non-perfect credit; 1 late payment in two years 30days+?

is clayton a reliable company?

for well and septic is $10,000 realistic as far as set-up fees?

thanks

[rmurray]

"are we getting screwed? "....I is hard to say....

$300 dollar payments are not even close to possible if you finance the improvements as well as the home..remember you will have taxes (about $75/mo) and insurance to buy (about $40/mo) in addition to your payments...Also you should budget about $50/mo in maintenence...With Vanderbilt's rates...and 20 year term max..you can expect about $450 per month for these figures..
not counting insurance and taxes..

Most first time buyers today are using FHA finance (not too common with Clayton)..at about 6% interest with 30 year term...FHA will finance those with some credit blemishes if the last 12 months have been good..

Clayton Homes will soon be the largest in the industry..they are well funded and owned by the 2nd richest man in the US..

$10,000 for well and septic is a little high...but you did say it was "virgin" land..so there will be other expenses such as electrical hook up...clearing..land prep..driveways...permits..on and on..$10000 could be low depending on all that has to be done..

Before you do this....be sure you are really happy with this home for many years...you cannot trade it in less than 12 years...if you have to sell..the only way to do this is sell the whole package...land and all...Think about it..Good Luck

[tiffani]

I appreciate your response.

I don't think we can get a FHA, because the late payment was last month, we paid it already, but we had to get my car fixed first.

we've already done a lot of the clearing, driveway and stuff, so all we really need is well and septic.

you are right, we are just going to have to bite the bullet, because dallas is too expensive.

Just a different day and time, when you think about mobile home prices even 15 years ago....................

But THANKS for the honest evaulation.

Clayton is going to get theirs because we need all the set up stuff, if it wasn't virgin land, probably wouldn't even consider Clayton. But what can you do when those are the only people that will really let your foot in door.

thanks again

[rmurray]

I am always concerned when a person says this is the only way to go....It is true that Vanderbilt Finance (part of Clayton Homes) is somewhat lenient on credit...but they charge very high rates..and are VERY tough on collections..

Remember...this loan will be for 20 or more years...they will amortize the payment over 30 years..then put you on the "Bubba" loan where they will take 1/2 of payment every 2 weeks from your bank account...effectively raising your payment because you will pay 13 per year...remember..once they have authorization to get into your account..they can collect any arrears payments at any time..

You might be smarter to rent for 12 months..then apply for a FHA loan at low rates..saving tens of thousands over time..In the mean time your husband can shore up his business..and you can work on getting your land ready..Good Luck

[tiffani]

I understand your point, but it is to the point we have to go. I am not worried as to making the payments or anything like that, but I just thought things would be different.

I am not giving them access to our accounts, I was planning on paying every other week anyway.

We are just in a situation now, where it is simply time to go.

That's why Vanderbuilt makes so much money because they know if you are even dealing with them, your options are limited.

If things go even half the way , we want them too. I am going to try to have this paid off in like 5 years and tell myself I financed a hummer.

[rmurray]

Read your closing docs very carefully...Vanderbilt does very few loans without direct access to your checking account...This is normally a condition of the finance approval..

Good Luck

[tiffani]

thanks, found property is so close to city limits that we can have municipal water and utility set up without all the well and drilling. so that's cool. I appreciate your honesty. They are going to have to do it without a checking account. victim of identity theft four years ago. I will never get another checking account. It took us two years to get all that mess cleared up.