Looking for advice

[Jeff Hubbard]

My wife and I are trying to purchase our first home for us and our two daughters. We found a for sale by owner in a good school district (a big deciding factor) in our area of North Mississippi.

The home is a 1992 Southern Energy triple-wide (I'm guessing manufactured?) on a 1 acre wooded lot. According to their current insurance, it is 56x41. The home is in excellent condition. It has 2x6 external walls making the marriage walls 2x12. Floor joists are 2x8 with 16" spacing. It has plywood floors, and plywood on the outside under the siding instead of blackboard. It has a shingled roof, and double-paned windows. The insulation is R24 in the floors, R19 in the walls, and R29 in the ceiling. The carpet was removed from the great room and hall about 3 years ago and replaced with linoleum (the kind that looks like hardwood floor). The carpet in the Master Bedroom and the other two bedrooms looks to be in good condition except that it's wrinkled. The huge bathroom in the Master Bedroom has a garden tub, but no shower (they chose an extra storage cabinet instead of the shower). The only flaw I've seen on the inside other than the wrinkled carpet, is a sort of wave in the 14x24 kitchen ceiling. There is no sign of water leaking, and it's really hardly noticable. Actually, they pointed it out to us. They said that someone pointed it out to them about 5 years ago. It looks like a shadow on the ceiling. They said that they left it alone because they didn't want to lose the insulation. The home also has central air (unit replaced about 3 years ago) and a propane furnace. There is also an additional propane heater in the great room that was put in after the ice storm in 1994. They only had the home insured for $53,700 which they said had not been increased since they purchased it.

The lot is a beautiful wooded lot, part of the back is fenced for dogs (which we have 3). There is a bamboo forest at the backside of the lot. There are small decks at the side and front doors, and a large deck in the back from the sliding glass door in the kitchen in the fenced in area of the yard. I was told that the decks are not attached to the home. There are two sheds on the lot as well. They look decent, but not much to say for them. It has community water, and a 1000 gallon septic tank. The lot is in a nice uncongested community on a dead end paved street. The three times we've been out there for several hours each time, I've yet to see another car go down the road.

They are asking $74,900 for the home and lot. They are including a nice lawn tractor also. All appliances except the washer and dryer. They are also offering $2000 toward closing.

Right now I'm locked in at 6.25% with Century21 Mortgage for a 30 year FHA. Now we are waiting for all the FHA inspections and paperwork. I'm concerned about the foundation requirements. The wheels, axles, and towing bars have been removed. It has poured concrete piers with anchors. That should qualify, but the FHA guidelines also mentions a perimeter foundation. It has vinyl skirting, which isn't really mentioned. The owners are willing to get a poured perimeter foundation if needed. They've checked and said it will cost them about $2300 to have it done. The owners are super nice people, he used to be a minister. They really like us, or rather our kids, and really want us to have the home. The only holdup I can see will be the perimeter foundation. I qualify fine for the loan, now it's just if we can get the home qualified. I've contacted a structural engineer to go inspect it and give us a report. The mortgage company is getting an appraiser lined up. The owners were hoping it would appraise at about $90,000 to $100,000 for PMI issues, but I've learned that with an FHA it doesn't matter because they require it or rather MIP for the duration of the loan regardless.

I was wondering about insurance. Should I wait for the appraisal to determine the amount or could I go ahead and use the purchase amount to rate it?

If anyone has any suggestions or advice for us, they would be greatly appreciated. This is the first time we've ever done anything like this and it's somewhat confusing. And I never knew that purchasing a MH was so different than a traditional home. Actually my father-in-law/bank loan officer was very discouraging over it at first. I think he's somewhat impressed with what we've found and started on our own. He was very impressed with the 6.25%. We've looked at probably 30 homes now, and this one is perfect for us. Now we are ready to get moved.

[rmurray]

Sounds like you have the bull by the horns...You will have to pour a perimeter foundation and replace the skirtibng with block...Hope you get a good FHA inspector...remember..they all have different ideas on what should be done...if one is a little too strict..they another..

All you need is an appraisal for the amount of the home sale plus closing if the seller is paying them..

Good Luck