Manufactured homes are the preferred choice of real estate in today’s day and date. There are a number of reasons why more and more people are leaning towards these prefabricated homes which offer all the living and comforts similar to traditional housing.
Here are a few benefits listed for your reference:
Price and affordability: Probably one of the biggest reason why people are leaning more towards buying prefabricated homes. Since the building material used in manufacturing these homes are cost effective, the final price of the finished home is also very low compared to what you would end up spending on a traditional home. The average cost for a manufactured home is almost one fourth of what you might pay for a traditional home. On an average a traditional single family home will cost anywhere upwards of $250,000 whereas a manufactured home might just be in the range of $60000. The cost per square foot is also less compared to traditional housing.
Efficient construction and building process: With traditional homes which are built and managed by contractors, which sometimes might not be a very well managed process, there are a number of things which may go or may not go according to plan. More delays will eventually mean you ending up spending more than what was decided for the project. This is not the case for manufactured homes since they are pre-fabricated and assembled on the factory floor with managers and supervisors each overseeing the smooth and controlled process.
Faster delivery and results: Manufactured home as mentioned earlier are built on the factory floor and to be directly transported to the site. This is a faster process compared to traditional housing because every element in the assembly line is a strict and rigid time bound process. Production lines on factory floors are timed to the millisecond and are a very efficient process, which is also one of the reason why these homes are so economical.
Flexibility: Manufactured homes are built and assembled on a particular layout which will appeal to the design specification of the client. This gives the client room for exploring a number of options before locking in on that floor layout and paint scheme. The more you can afford to spend, the better are the options with respect to what goes into your home.
Manufactured homes are not just always your trailer park homes, which is the typical stereotype hype. In fact manufactured home communities are great places to relocate, since more and more traditional homeowners are preferring prefabricated and manufactured 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.