Mobile homes are popularly called trailers. They refer to prefabricated structures that people originally used as temporary accommodation. However, in recent times, a lot of people prefer manufactured homes, whether it is senior citizens who are living on their retirement funds or young couples who do not wish to lay down their roots in one place. A significant advantage of such properties is that the owner does not have to spend extensively on the maintenance of their property, or pay high taxes.
Affordability is the key word here. Gone are the days when people thought that living in cheap mobile homes was an option for only the poor. Today mobile homes are specially designed and set amidst rolling hills and green fields. They can have 1-5 bedrooms, there are two or three bathrooms, open floor plans, beautiful kitchen islands, and all of this is in the latest style. Home seekers can look at options ranging from basic narrow structures to double wide spaces. Customization is also possible with the new mobile homes on sale. Walk-in closets, spacious bathtubs, flooring types, blinds, lights, heaters and cabinet finishes, just about everything can be tailor-made to satisfy a customer’s specifications. Owners of mobile homes also have the freedom to move their house, although there is a cost involved in this.
Cheap mobile homes for seniors are available on sale in several parts of the country. Most of them restrict the age of ownership to people over 55 years. Senior citizens who want to enjoy their retirement in peace and solitude can invest their retirement funds in cheap mobile homes with small yards and scenic views. With minimal maintenance, low cost of purchase, absolutely no property tax, the freedom to paint or remodel at any time, access to amenities like swimming pools and fitness centers, and invitations to participate in community activities, mobile homes undoubtedly attract a lot of people.
There are single, double, and triple wide mobile homes. Single wide mobile homes range between 600-1200 square feet and come with two bedrooms, one or two bathrooms, a living space, and a kitchen. The price of these cheap mobile homes starts at around $45,000. Double wides have a floor space of at least 2000 square feet and include three bedrooms, two or three bathrooms, a combined kitchen and dining space, living room, and a washing room. It costs around $80,000. With 4500 square feet of space, triple wide mobile homes cost over $100,000 and may even go up to $300,000.
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.