What sort of home should I and my Fiance choose- an apartment, house, or mobile home?
Manufactured Homes July 2nd, 2010We are on a tight budget. We would like the rent/mortgage/payment on the home to be 700 dollars or less per month. For right now, it seems that they best option, from a financial standpoint, would be to buy a mobile home. What are the pros and cons of doing this?
Thanks. Any suggestions would be appreciated!
July 2nd, 2010 at 10:51 am
Pros: Used mobile homes are very affordable
Cons: Mobile homes are like cars, they depreciate in value
Cons: New mobile homes are a bad value due to depreciation and high prices compared to value
Cons: You are at mercy of park with lot rent and utility bills
Suggestion: Rent a small apartment or trailer and save a significant sum every month, then buy a condo, townhome or house in a year or two. Save up for down payment. If you save up a 20% down payment, you avoid paying PMI, which is an additional large monthly cost. Build up your credit by paying every bill on time. Don’t run up credit card debt, and pay at least double the minimums on all cards. Then when you are ready to buy, you will have great credit which gives you a lower, cheaper mortgage interest rate and better terms.
Why do you think your best option is to buy a mobile home? If you want to later sell it, it can be difficult and it will have greatly depreciated in value. You are then stuck owing lot rent and having to rent it out or dispose of it at bargain price. WAIT. SAVE. Build up your credit.
July 2nd, 2010 at 10:51 am
You should also chat up a few loan officers & start a campaign to getting closer to acheiving your goals. Mobile homes are very difficult to finance right now. Mobile homes manufactured prior to July of 1976 are near impossible to finance. Same for mobiles in parks.
It may seem like a good idea to buy now, but if a mobile home is your only choice, you are better to save & buy a condo, then after you are in the condo a few years & gain some equity, move up to a stick built home.
July 2nd, 2010 at 10:51 am
Not only is it a matter of finance, also consider if you want all four walls yours, if you want someone above or below you and what about the noise they will make, do you mind mowing the lawn or shoveling the snow? You can also resell a moblie home you can’t with an apartment, but what about a condo? Good luck.
July 2nd, 2010 at 10:51 am
How old are the two of you? Do the utilities come with the rent or are they seperate? If you are just starting out, how about just renting a small one or two room apartment that is cheaper. Then, if you get married then maybe if you can afford it a regular apartment.