Prefabricated homes gained mileage post World War II as it catered to the housing shortage at a fast pace. For less than $2500, homeowners received kits that included prefabricated pieces of wood, nails, tools, and paint. All that you had to do was look at the manual and build the house by yourself or with minimal external help. In the 1970s, the federal government put some rules in place to ensure the safety of modular homes. Today, prefab homes are also called modular homes. They have evolved to include the latest technology and building materials. When a first-time home buyer looks for housing options, modular homes are on the top as they tick off several columns such as cost-efficient, better quality, environment-friendly, sustainable, and good looking too. If you are looking to build green homes that cause minimal damage to the environment, you should opt for modular homes. Since they are manufactured in factories as per your specific measurements, the wastage of building materials is reduced by half. All the unused materials are recycled for their next order. Most of the waste that goes to landfills is from the construction industry. With modular homes, this waste is reduced by 40%. Most of the new modular homes come with green roofs and include provisions such as solar panels that supply electricity for all household needs. Homeowners can use this electricity for lighting, cooling, and heating purposes. They can also store excess electricity in batteries and sell it to local grids. The country’s law ensures that modular homes maintain high sustainability standards. They cannot use traditional material like PVC or cement. They have to use non-toxic and low VOC (volatile organic compound) materials that are eco-friendly. New and innovative technologies have led to the use of reinforced and recycled materials for roofs, and internal wall panels. This type of insulation keeps the house warm during winter and cool during summer. New ideas like bamboo floors, collection and storage of excess rainwater, geothermal heat pumps, tankless water heaters, and low flush toilets make modular homes a viable alternative for all those who want to live in an eco-friendly manner.
While building a modular home, you can insist on or look for builders who offer an energy efficient design. You can also ask and verify if they use sustainable, eco-friendly materials so that you own an inexpensive green home that is built faster than traditionally constructed homes.
A reverse mortgage is a type of loan that allows homeowners to receive payments on their house as opposed to them making payments to the lender. At first glance, this option seems too good to be true. But, before committing to it, there are some nitty-gritty details that people must consider when opting for this type of financing. So, here is some information regarding the pros and cons to consider when getting a reverse mortgage.
Advantages
Disadvantages
A reverse mortgage is a loan that allows individuals older than 62 to improve their financial well-being. They can convert part of their home equity into lump sum cash, fixed monthly payments, or line of credit, according to their preference. The money can be used to pay for medical bills, in emergencies, or to pay off a mortgage. Here’s what you should know about reverse mortgages in case you’re looking for one.
How much can you borrow?
For reverse mortgages, the loan amount can’t exceed the value of the property against which it is borrowed. Federal regulations require lenders to ensure that the loan amount doesn’t exceed the value of the house by structuring the transactions accordingly. Additionally, these regulations state that the owner/borrower is not liable to pay off the balance amount in case it exceeds the property value.
How are reverse mortgages paid for?
A reverse mortgage is payable when the borrower sells the house, relocates permanently, or dies. Unlike forward mortgages, reverse mortgages don’t need the borrower to make any monthly payments. They are only liable to pay interest on the money received, which is rolled back into the loan balance. While the owner gets to keep the title to the home, their home equity reduces over the loan tenure.
Who can take a reverse mortgage?
This type of loan is ideal for seniors and retirees whose net worth comes mostly from the value of their home. Seniors who don’t qualify for a home equity loan or can’t refinance due to limited cash flow or poor credit can opt for reverse mortgages. Home Equity Conversion Mortgage (HECM) for purchase is a reverse mortgage that allows seniors to buy another property. That said, it is complex, and you should study the risk factors before getting one.
What are the risks associated with reverse mortgages?
Reverse mortgage scams are not unheard of. Unreputable vendors could offer to help seniors secure reverse mortgages by undertaking house repairs. They don’t provide quality results and get away with the homeowner’s money instead. For spouses living together in a home with only one spouse named as a borrower on a reverse mortgage, the other spouse can lose the home if the borrowing spouse dies first. Besides, reverse mortgage lenders charge fees and closing costs and may also charge mortgage insurance premiums for federally-insured HECMs.