There are a number of benefits for buying a mobile home as opposed to buying property. Benefits in terms of quality, equity, upgrades, cost, flexibility and more.
Simple living: If you are not looking for something fancy and are contempt with the basics, buying a mobile home is the cost-effective way to go. The estimated cost per square foot of any mobile home is half to that of a traditional home. This in itself is the biggest winning argument for buying one. Granted if you are looking to modify and make most of the space, that just might not be possible in case o a mobile home. There are a number of building a material restrictions when it comes to manufactured homes and thus there is very little room for expansion. But on a positive note, these homes serve the purpose they were intended to in the first place. Basic, economical and minimalistic living, with the number of people opting for mobile homes increasing by the day.
Flexibility: The biggest advantage to buying a mobile home is having the option to move from one place to another without even breaking a sweat. Mobile homes are designed to stay static once placed on site, but are also designed to be moved with ease form one place to another. Not all trailer parks and mobile home parks will have licenses or proper permits to continue staying and hence, there is a good chance that you just might have to move you home a couple of miles down the road. So, hitch it to the back of your trailer and you’re good to go, with minimal efforts and time spent.
Upgrades: Although prefabricated homes are difficult to upgrade and don’t have much room to do so, nothing is stopping you from upgrading the entire home altogether. As mentioned earlier, the cost to own and maintain a mobile home is half of what you might just incur for a traditional home. There is a good chance, the cost of buying a new mobile home might not even be more than the cost of say renovating a big two or three-bedroom house with the works.
Also, when it comes to mobile homes, the fee paid for renting the land on which these homes are built will include all the basic sewage, garbage, recycling pickup services. There is the added advantage of no property taxes for mobile homes.
Overall, buying cheap mobile homes are more cost effective than your traditional homes, in terms of upkeep and maintenance also.
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.