Buying an existing home in park vs ordering new

[KraigG]

I'm looking to purchase a manuafactured home in the next few months. My question is: Would it better to purchase a fairly new home in an established park, or order a new one and have it delivered to an empty space in the same park?

I initially thought I could save some money by buying new and having it delivered and set up, but now I'm starting to reconsider.

I've had price quotes for a new 2 bedroom/2 bath 1000 square foot home ranging from $55k to $80k PLUS transport and set up, and those costs have been anywhere from $4000 to $8000 for transport, and $10k to the price of the home for set up.

I've found a nearly new one that meets my needs in an established park for $66k.

My credit is only fair, and was wondering if lenders are more lenient with new home purchases as opposed to "used" ones? I will put at least 50% down either way.

[rmurray]

Both options have their advantages...New you will get full warranty, substantial design and decor flexibility. New affords you all the protections of the HUD laws. Used is always AS IS with NO factory (these are for the original buyer ONLY) warranty (this means you should invest at least in a professional home inspection) and HUD only directly protects the original owner. Banks will charge 1 to 2 % higher rates on used..But 50% down should take care of most any credit issues (except outstanding tax liens or unpaid judgments) in either case..So if the used home are actually in great shape you have to decide...

[David Oxhandler]

While the warranty is a great advantage in any new home at this point we are in a buyers market. If the pre-owed home is in good condition... and the only way to be sure is to hire a home inspection company to do a full report... you may be able to negotiate an even better price. If you decide to go with the pre-owned home you may be able to purchase a local home service contract to cover the appliances and some even cover the plumbing and electric systems. You said the home was nearly new. If the home is still under warranty to the original owner you can negotiate a price that includes for them to purchase an excellent six year extended MH warranty that is only available for purchase by the first owner

The highest percentage of problems that manufactured home owners experience are due to installation problems. If the pre-owned home has been there for some time (a year plus) and is level and well maintained and has the features you are looking for it could very well be a better buy, in the long run than a new home. You also get to avoid all the hassles, uncertainties and hidden expenses that go into installing a new home. (Permits, inspections, time delays, multiple contactors for water sewer electric and set up, utilty company deposits for initiating service and local impact fees) Be sure to ask the inspection company to check for level. (A 4 foot level tool on the floor in various place thru-out the home will give you a rough idea if it is close to level. The same 4 foot level place on the main I-Beam in a few different spots will give you an even better reading. A simple to assemble water level will give you the most precise reading)

To find out what the real cost of each option will be get pre-qualified for a manufactured home loan. Let the lender know you are considering a brand new and pre-owned home. With the amount your willing to put down you need to get quotes from more than one lender. At this time, with the decline in home sales across the country, none of the finance companies are not funding the volume of loans they would like to. Your ability to drop 50% down should give you some clout.

Once you know what the term and interest rate would be for new and for pre-owned, take your pre-approval letter to the sellers and start to have some fun. Sellers like lenders are hungry for sales today and with that pre-approval you will be able to shop and negotiate like a cash buyer. Take you time and work the buyers market to your absolute best advantage.