Well, the more I gather information, the deeper in debt I get. My dilemma is this. I was quoted a list price (negotiable) of around 70K on a new Deer Valley DW home. I've spent all day looking for land within a 10 mile radius of the little town in which I live. This had been frugal to say the least. Hardly anyone has any land for sale and the ones that do want on an average of 7K per acre, with the smallest partial being 11 acres, noone wants the sell a partial (1-5 acres.
It's beginning to look like, with the price of the home, 5% down, land, land preparation, water lines, septic or water treatment system, electricity, taxes, closing cost, and whatever else I've forgotten, it's gonna cost a fortune.
Now, while I was land hunting, I ran across someone who turned me on to a lady who has a (32x90) 2003 Gateway or Champion? Don't know the model exactly. She hasn't listed with a realtor yet, so noone knows it's on the market. The home is immaculate, it is located on 4.75 acres at the end of a cul-de-sac road. It had a brick skirting, concrete steps with hand rails, a long concrete driveway and garage, an 14x34 metal building. The landscaping is beautiful, stone paths, stone patio, with a small deck on the back, the bedroom are huge. It also has a water treatment system and a very nice storm cellar. The home belongs to an older couple, the lady's husband just died. They bought the home new about 3 years ago and she wants to move to Austin, TX to be near her daughter.
She is asking 115K for the home. I'm thinking that this would be a better investment rather than the hassle of all the out of pocket money I would have to come up with in a new purchase and not owning land. I offered her 95K and at this point she is firm on her asking price. The property has been appraised at 125K.
I did get her to commit to giving me a first option to buy without a deposit.
Questions
1. Opinions on buying (with all the hassles) vs purchasing the above described home (once again, it is in immaculate condition, in a beautiful location with plenty of elbow room, beautiful lawn, trees and flower gardens---(Yeah I love it LOL)
2. What are my financing options, since I talked to three bankers this morning who don't finance manufactured home with only one who will finance for 5 year intervals and then refinance (which in NOT EVEN a consideration)
3. Is it possible to assume the sellers loan (provided the interest rates are good and locked)
4. Can I use the appraisal of 125K minus the selling price of 115, 10K difference to be applied as the down payment?
5. I don't want multiple lenders pulling my credit report. I pulled it myself at work yesterday - Beacon 732, should get a prime rate. What rate could I expect with this score on this home?
6. How long could I finance the home? I have to stay within my budget so I may have to get the max terms and make extra payments when possible.
In conclusion, I'm not stupid, just ignert! lol. I just want to know all my options and anything I've not considered.
Thank you in advance for any advice.
Need Advice on Purchase
Re: Need Advice on Purchase
The pre-owned Champion on 4.75 acres sound like a very good way to go... especially since you like it so much. With a brand new manufactured home you would have the advantage of the exact home with the options you want most and the manufacturers warranty, but as you are learning, installing a new home can be a costly and challenging today.
It is not likely that you will be able to assume the sellers loan. Assumable loans of all types have not been widely available for many years.
Whoever gives you a mortgage will probably want a new appraisal by an appraiser that they know. If the appraisal is more than several weeks old it may not reflect the current market value. Since the housing bubble burst existing home values have been falling steadily, in most markets across the country. Many sellers in today's market are basing their price on sales during the housing boom. A fresh appraisal with a motivated seller might just get you a better price.
If the value of the home land package is 20 percent higher than the selling price you might find a lender that will let you use this excess value in place of a down payment but that is less likely in today's lending climate. many lenders have been going out of business due to loose lending practices. The ones that are still doing business have tightened up their program standards. Too many folks that got zero down mortgages in the past few years have walked away form their homes and their obligation to the lenders as the job and housing markets took twin dives while rates and payments on variable mortgages jumped up. Most solid lenders will want you to have an investment in the home, so you have a good reason to complete the mortgage.
There are many lenders that specialize in MH loans that will be happy to offer you a mortgage with your credit score. The only way they can pull your credit report is if you give them your social security number. You can submit your loan desires to the Manufactured Housing Loan Finder. The form has no place for you to submit your social security number. With this service, you'll save time and money. You will discover which participating lenders offer the best loan programs and rates to meet your needs. Based on what you submit, multiple lenders and brokers will try to find a loan that matches your needs. Your request for loan information can be answered by as many as a dozen participating manufactured housing finance companies.
Most lenders have fixed rate programs with terms as long a 30 years. Stay away form variable rates, as no one can tell you what your payments will be in the future. A fixed rate should help you stay within your budget.
I think you are being very wise in your decision to find out as much as you can before you make any commitments. The Manufactured Housing Loan Finder will get you exact amounts, including down payment and monthly payment quotes from multiple lenders. Comparison shop for manufactured housing loans in your state or across the country.
Yesterday the Fed dropped interest rates. It may take a few weeks for this to filter down to the mortgage markets or it may have no real effects on mortgages as they are at historic lows now Find the lender that works best for you, lock in todays low rates and chase your dream.
Good Luck... come back and let us know how you make out.
It is not likely that you will be able to assume the sellers loan. Assumable loans of all types have not been widely available for many years.
Whoever gives you a mortgage will probably want a new appraisal by an appraiser that they know. If the appraisal is more than several weeks old it may not reflect the current market value. Since the housing bubble burst existing home values have been falling steadily, in most markets across the country. Many sellers in today's market are basing their price on sales during the housing boom. A fresh appraisal with a motivated seller might just get you a better price.
If the value of the home land package is 20 percent higher than the selling price you might find a lender that will let you use this excess value in place of a down payment but that is less likely in today's lending climate. many lenders have been going out of business due to loose lending practices. The ones that are still doing business have tightened up their program standards. Too many folks that got zero down mortgages in the past few years have walked away form their homes and their obligation to the lenders as the job and housing markets took twin dives while rates and payments on variable mortgages jumped up. Most solid lenders will want you to have an investment in the home, so you have a good reason to complete the mortgage.
There are many lenders that specialize in MH loans that will be happy to offer you a mortgage with your credit score. The only way they can pull your credit report is if you give them your social security number. You can submit your loan desires to the Manufactured Housing Loan Finder. The form has no place for you to submit your social security number. With this service, you'll save time and money. You will discover which participating lenders offer the best loan programs and rates to meet your needs. Based on what you submit, multiple lenders and brokers will try to find a loan that matches your needs. Your request for loan information can be answered by as many as a dozen participating manufactured housing finance companies.
Most lenders have fixed rate programs with terms as long a 30 years. Stay away form variable rates, as no one can tell you what your payments will be in the future. A fixed rate should help you stay within your budget.
I think you are being very wise in your decision to find out as much as you can before you make any commitments. The Manufactured Housing Loan Finder will get you exact amounts, including down payment and monthly payment quotes from multiple lenders. Comparison shop for manufactured housing loans in your state or across the country.
Yesterday the Fed dropped interest rates. It may take a few weeks for this to filter down to the mortgage markets or it may have no real effects on mortgages as they are at historic lows now Find the lender that works best for you, lock in todays low rates and chase your dream.
Good Luck... come back and let us know how you make out.
David Oxhandler
mailto:[email protected]
mailto:[email protected]
Re: Need Advice on Purchase
The admin's post is right on...Sounds like a deal..You did not say where you are from..but I doubt the home is really a 32x90...That size would only be possible in TX..Did you see the appraisal she mentioned?...It will have the square footage as most homes are measured..The biggest home in most of the country in only 2 sections is a 32x76 (often called 32x80) which will measure out at about 2350 square feet....Big house by anyones standards..
Your 732 Fico score (Beacon is Equifax's term for Fico score) will qualify your for the nearly the best mortgages in the market place..The $6000 worth of brick under pinning and $4000 worth of steps and decks might help this home qualify for FHA insured finance...All that is required down is 3% and you will have to pay closing costs and prepaids of about 8%...But it is legal for the seller to price the home high enough to pay up to 5% of these...Beside FICO score FHA will be looking at you income, out go, job stability as well...Rates will be about 7% in todays market...With the FHA insurance added to that...Most often a good rule of thumb to think about for 30 year term is about $10/month for every $1000 you finance or about $1000 per month for a $100,000 loan..This will include the required escrows for taxes and insurance.....FHA will require an inspection of the home,a new appraisal,current survey and water test and sewer approval...The loan originator should be able to help you with these..Probavly some of the lenders available through this site will be FHA lenders....but not all most will be conventional lenders who will require 5% CASH down(the more you put down the lower your rate) and for you to pay what ever closing costs incurred (usually less than 4%) Their rates will be slightly higher but costs far lower..They may not require an escrow.which means the payment for a loan will be lower..Usually about $850/mo for a $100,000 loan for 30 years..They will not require all the inspections but probably require a current appraisal..again the originator will help with the details...There are MANY mortgage plans available with terms as long as 30 years..some maybe even longer.
As admin said the current mortgage is probably not assumable..few are but it would not hurt to ask...
Before money pass hands you should involve a real estate attorney...He/She will advise you of your states laws about real estate and contracts..He will help you develop a good contract for the lady to sign..He will probably suggest a title search to be sure the lady actually owns the property..especially with the recent passing of her hubby..The attorney will know all there is to know about Probate and your states laws..It would be a frustrating to start a mortgage that can take months to close only to find out there is a title(deed) problem at the last minute and all has to stop..The attorney fees at this stage will be low but a great investment..
GO FOR IT...Good Luck
Your 732 Fico score (Beacon is Equifax's term for Fico score) will qualify your for the nearly the best mortgages in the market place..The $6000 worth of brick under pinning and $4000 worth of steps and decks might help this home qualify for FHA insured finance...All that is required down is 3% and you will have to pay closing costs and prepaids of about 8%...But it is legal for the seller to price the home high enough to pay up to 5% of these...Beside FICO score FHA will be looking at you income, out go, job stability as well...Rates will be about 7% in todays market...With the FHA insurance added to that...Most often a good rule of thumb to think about for 30 year term is about $10/month for every $1000 you finance or about $1000 per month for a $100,000 loan..This will include the required escrows for taxes and insurance.....FHA will require an inspection of the home,a new appraisal,current survey and water test and sewer approval...The loan originator should be able to help you with these..Probavly some of the lenders available through this site will be FHA lenders....but not all most will be conventional lenders who will require 5% CASH down(the more you put down the lower your rate) and for you to pay what ever closing costs incurred (usually less than 4%) Their rates will be slightly higher but costs far lower..They may not require an escrow.which means the payment for a loan will be lower..Usually about $850/mo for a $100,000 loan for 30 years..They will not require all the inspections but probably require a current appraisal..again the originator will help with the details...There are MANY mortgage plans available with terms as long as 30 years..some maybe even longer.
As admin said the current mortgage is probably not assumable..few are but it would not hurt to ask...
Before money pass hands you should involve a real estate attorney...He/She will advise you of your states laws about real estate and contracts..He will help you develop a good contract for the lady to sign..He will probably suggest a title search to be sure the lady actually owns the property..especially with the recent passing of her hubby..The attorney will know all there is to know about Probate and your states laws..It would be a frustrating to start a mortgage that can take months to close only to find out there is a title(deed) problem at the last minute and all has to stop..The attorney fees at this stage will be low but a great investment..
GO FOR IT...Good Luck
Re: Need Advice on Purchase
90' homes are available in Alabama. Have been for years.
Re: Need Advice on Purchase
I have spent all day on the phone trying to find someone who will finance. My head is aching. I talked to almost every banker in town and they all will only do a 5 year renewable loan. I called a frienf od mine who is a lender for Mississippi Mortgage LLC in Jackson and she didn't know of anyone who would finance the home. Next I called an attorney friend who probably does 50% of the closing in town and he didn't know of any source. Finally I called a close friend who is a realtor and she's trying to find someone who will do a fixed rate on 20-25 years. So far today she has struck out with every lender she knows.
I've been lied to by bankers here in town who I would have thought would want to give me some sound financial advice. One wants me to consider the 5 year renewable rate and they will finance 85% of the appraisal value. I told him I didn't think that would be a wise financial decision and I was very wary that anything could happen in five years. Interest rates could sky-rocket, we could be in the middle of World War 3 and my mortgage payments could possibly be out of site. If I could predict the future, I wouldn't need to finance the home, I could pay cash because I would be a Gazillionaire.
Vanderbuilt called me and wanted to take a credit app over the phone, I am too apprehensive to give them my credit info at this point, in that I know nothing about them and they could very likely be like everyone else I've talked to and want to take me to the cleaners.
It makes me very skeptical when all the bankers, closing attorneys, real estate agents and manufactured home sales people I talk to know of NO sources for a fixed rate long term loan and every mortgage loan sites on the internet make claims of the contrary. You would think people in the business would at least know of a lending source if they were to exist.
I've been lied to by bankers here in town who I would have thought would want to give me some sound financial advice. One wants me to consider the 5 year renewable rate and they will finance 85% of the appraisal value. I told him I didn't think that would be a wise financial decision and I was very wary that anything could happen in five years. Interest rates could sky-rocket, we could be in the middle of World War 3 and my mortgage payments could possibly be out of site. If I could predict the future, I wouldn't need to finance the home, I could pay cash because I would be a Gazillionaire.
Vanderbuilt called me and wanted to take a credit app over the phone, I am too apprehensive to give them my credit info at this point, in that I know nothing about them and they could very likely be like everyone else I've talked to and want to take me to the cleaners.
It makes me very skeptical when all the bankers, closing attorneys, real estate agents and manufactured home sales people I talk to know of NO sources for a fixed rate long term loan and every mortgage loan sites on the internet make claims of the contrary. You would think people in the business would at least know of a lending source if they were to exist.
Re: Need Advice on Purchase
Vanderbilt is a reputable lender. They are the leader in manufactured housing lending nation wide. I understand your apprehensions about giving out your ss number but if your going to get a loan you will have to start someplace and they are a good source to start with. Ask about the fixed rate and term compare them to the other MH LOAN FINDER lenders that will contact you (and in the words of my friend rmurray)... go for it!
David Oxhandler
mailto:[email protected]
mailto:[email protected]
Re: Need Advice on Purchase
Tks, Do you know anything about Southwest Funding, a guy called me this morning from this company and seemed straight up or else he is the best con guy I've ever talked to. He seemed to be a straight shooter.
Here's the site
www.swflandhome.com
One other thing, what state agency (Mississippi) can I contact to find out how credible this mortgage company. I see on their site that they are lisensed in Ms,
Here's the site
www.swflandhome.com
One other thing, what state agency (Mississippi) can I contact to find out how credible this mortgage company. I see on their site that they are lisensed in Ms,
Re: Need Advice on Purchase
Southwest is a fair and honest broker. We have had no complaints about them and they have been an affiliate of the LOAN FINDER program for the past three or four years.
Your credit score is outstanding and you should be able to negotiate a very good deal. At this point in time all lenders are looking for business. A credit score like yours is a dream come true for them during a constricting market. Ask questions... ask for answers in writing, e-mail makes that very fast and easy today. Don't sign anything without reading and understanding exactly what you are contracting for and don't be afraid to ask for a better deal. You may not get everything you want but they wont shoot you for asking.
TO see if there have been any complaints about them in your state contact:
Mississippi Better Business Bureau
P.O. Box 3302
Ridgeland, MS 39158
Phone (601) 707-0960
(800) 987-8280 (toll free in Mississippi)
FAX (601) 856-9331
Email [email protected]
Office Hours
Monday-Thursday 9:00-noon, 1:00-4:30
Friday 9:00-noon, 1:00-4:00
Your credit score is outstanding and you should be able to negotiate a very good deal. At this point in time all lenders are looking for business. A credit score like yours is a dream come true for them during a constricting market. Ask questions... ask for answers in writing, e-mail makes that very fast and easy today. Don't sign anything without reading and understanding exactly what you are contracting for and don't be afraid to ask for a better deal. You may not get everything you want but they wont shoot you for asking.
TO see if there have been any complaints about them in your state contact:
Mississippi Better Business Bureau
P.O. Box 3302
Ridgeland, MS 39158
Phone (601) 707-0960
(800) 987-8280 (toll free in Mississippi)
FAX (601) 856-9331
Email [email protected]
Office Hours
Monday-Thursday 9:00-noon, 1:00-4:30
Friday 9:00-noon, 1:00-4:00
David Oxhandler
mailto:[email protected]
mailto:[email protected]
Re: Need Advice on Purchase
You can go here for mortgage license info in MS...This company has 2 branch offices in MS which means they will be familier with your states process..If I were you I would continue with the guy that called...
http://www.dbcf.state.ms.us/mortgage_lending.htm
Find the search link abgout 2/3rds of the way down..
http://www.dbcf.state.ms.us/mortgage_lending.htm
Find the search link abgout 2/3rds of the way down..
Re: Need Advice on Purchase
Thanks guys, you have been a tremendous help. I really appreciate all the advice. Allen from Southwest sent me three Good Faith Estimates. Looks really good. I will forward these to my attorney tomorrow for him to look over. Hopefully everything will check out good and I will soon be in deeper debt LOL
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