Mobile Homes is it a good alternative?
I’ve had a bankruptcy due to being off work for an extended time because of health issues, now I’m returning to work. I’m interested in purchasing another home, but 1 my bankrupcy obviously 2. I want something that is less upkeep, and I think this would be more reasonable. However I live in tornado alley, my friend said they have tie downs and things they can do to secure things now.
Recommendations please.
Posted August 12th, 2009 in Bankruptcy Alternatives. Tagged: bankrupcy, bankruptcy, health issues, tie downs, tornado alley, upkeep.
Lets face it, if your house gets hit directly by a tornado, it doesn’t matter if you live in a house or a mobile home. I think MH get bad names because if they do get hit, the damage is worse because the house is smaller.
That being said, I would not buy a new MH. They devaluate greatly. I do buy mobile homes, and regularly buy 20 year old homes for around $800-$2000.
Look into buying one used. It will hold its value better, and you will start off on better footing.
August 12th, 2009 at 4:46 pmWhile it may be an option or alternative for you, my concern is future value or sale value. They don’t do so well in the after market.
It might be best for you to wait until your bankruptcy is all cleared and you’ve had a chance to improve your credit. While I know renting is like throwing money out the window, the pay off in a couple of years could be tremedous for you.
August 12th, 2009 at 4:46 pmJust something to consider. In the meantime, why don’t you rent a mobile home and see how you feel about it.
I would not recommend a mobile home if you live in tornado alley. Tornadoes can uproot the strongest of trees, imagine what they can do to a couple of tiedowns. If you do get a mobile home, make sure you get some really good insurance, you will need it.
August 12th, 2009 at 4:46 pmI live in Texas, just south of one of the worst tornadoes ever seen. I will tell you that manufactured housing in our area is still selling at a pretty rapid rate. Most folks that choose manufactured also choose to dig storm cellars when they dig their septic systems.
The challenge with manufactured these days is the financing. If you want to own the land underneath your home you may want to look at FHA financing for the purchase. FHA rates are good right now (6% or so) and they are flexible with MH’s. Most FHA compliant manufactured home builders put the houses on a runner slab, where concrete runners are poured into the ground below the frost line and then piers are sunk into the concrete and welded to the frame of the unit. Very common here.
The only challenge to remember with Mobiles is the depreciation that they experience after about 10 years. You don’t ever recover value like you do in a "stick built" home. They wear out become challenged after a while, and after about 15 to 20 years it becomes harder to sell them because most lenders won’t lend on them. Check your options and ask your loan officer for details.
Good luck with your purchase!!
August 12th, 2009 at 4:46 pm