Manufactured homes are prefabricated living spaces which are manufactured on a factory floor and then assembled on site, to build a perfectly good house which is similar to a traditional home in many ways. However, compared to traditional homes, manufactured homes are cost effective with affordable customization options.
There are a number of things you should be aware of before you go ahead and put down and offer on one of those popular home manufacturing companies.
Understand the term prefabrication: Manufactured homes are cost effective since the materials and construction techniques used on building one are cost effective. They are very affordable and come with a variety of floor plans, customization options. Weigh in your options first and ascertain how much you can afford after you have browsed through the company’s catalog and have narrowed down the roofing, walls, plumbing, fixtures and whatnots. But the main thing to keep in mind is the safety and security, which should not be compromised on account of your going overboard.
Buy services separately: There are a number of things that have to be taken into consideration before you can actually move in. Finalizing the floor plans and living spaces is just one aspect, there is home insurance, mortgage options to be looked at. But ensure that you don’t avail all of these services from one dealer as a package scheme. Opting for specialized services, even though it might just cost you a bit more is a good idea than trying to save money by taking up insurance and mortgage facility along with buying the property from one dealer or company.
Benefits of buying a manufacture home: The biggest of all being you can choose the size according to your requirements. Buying options generally range from 800 square feet to more than 2000 square feet. Since every little component used on the assembly line is cost effective, the price of manufactured homes will also be less compared to traditional housing and building options. Everything can be customized from scratch in case of a manufactured home, which will be a slightly more expensive alternative for traditional housing. There won’t be any room or customization if you are buying from someone who has previously occupied the home.
Location of your new home: For building a pre-fabricated home on site, there has to be a site in the first place. So, deciding on the location is a key factor that will also affect the costs. For example, you might own a piece of land preciously and have decided to use that site, which will save you a ton of money on buying space. But check with local authority and ensure that there is proper zoning.
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.