Mobile homes are caravans which can be moved from one place to another easily and then parked to be used as a permanent living arrangement. Mobile homes are prefabricated structures manufactured in a factory before being transported to the site. The mobility of these homes and the fact that they can be just towed from one place to another, hooking it to the back of your trailer makes it a very cheap and interesting option to buy.
However here are a few things you should know before you go ahead and buy one.
Buying a prefabricated home means that you will have to adjust yourself to the design specifications and build quality which might not just give you enough room for major upgrades or improvements for that matter. Mobile homes can only be upgraded to a certain point and then you will be stuck with it for the foreseeable future, thus ensure the model and opt for necessary upgrades before it goes on the factory floor to be put together. Customizable options are available even with prefabricated ones to ensure that living conditions suit you.
A simple logic applies when it comes to manufactured and prefabricated homes or double wide homes, you will only get what you pay for. So, decide your maximum budget beforehand to ensure that you don’t end up with a lousy piece of fabrication which cramps you and all the essentials that go with a place. Your expectations must be in line with the price you are willing to pay. If you want better flooring, quality carpet and furnishing, be ready to shell out the big bucks.
Once you have managed to narrow down the specifications of your mobile home, it is time to compare the same across a number of dealers and manufactures. The markups on these homes will vary from dealer to dealer and it is always a good idea to look up prices. You can also avail a number of financing options in case you don’t want to or don’t have the complete capital to spend all at once. Dealers themselves offer financing options with the sale and will get a credit for providing you with the finance at rates which might a be a bit higher than general mortgage loans.
As always, do a thorough research on the do’s and don’ts before making a long-term commitment. Don’t rush into the scheme of things as is, succumbing to high pressure sales tactics and attractive offers. Buying a home, even a mobile home for that matter is a long-term commitment. Ensure that you go through all the contracts and documents carefully before making a decision and signing those documents.
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.