What are some pitfalls of buying a new manufactured/mobile home from a dealer?

Question

My husband and I are in a real pinch, and we have to move FAST. We don't exactly have cash to buy a house. We are considering buying a mobile home. We can't afford a HUGE down payment, like $5,000 or $10,000. So we can't really buy a home over 50 grand. We have to move out really soon, and we hav epermission from family to move one on their land since we don;t own our own land. What's the best way to finance? We're looking for NO cash down if possible. Plus what are some pitfalls of buying a mobile home? The dealers mentioned turning a home in to trade like you would a car, but I'm not too hot on the idea, cause after you spend double what your orig price was, you wanna buy something better later. I think it's best to get the luxuries NOW and not have to pay for 2 homes, for the price OF 2 homes! We're having a HARd time trying for a small single, we prefer a double, that's not over 70 ft long and we've seen some pretty expensive ones so far. the cheap ones we'd consider are like 30-35 grand. The most expensive ones are about 70 grand. So if we got 2 singles in 20 years(which is stupid) it'd be the same price as 1 lux. I prefer just to buy ONE house and be done with it. What's your take? Any good websites? ANY advice? I live in KY. No jokes please! PLEASE HELP ME!!!!!

Answer 1

Living in one is fine and will be a comfortable home.  You just have to keep in mind it will probably not appreciate especially if it's not on land you own.  And like buying a car - you will get what you pay for.  If you buy a cheap one it will be cheaply made.  

A lot of home dealers offer financing or can help you with financing and usually will only require a small down deposit or maybe none.  

Thousand of people live in manufactued homes and are quit happy in them.  I have live in one for the past 8 years and am now shopping for a house or modular home.  It suited our needs at the time put a roof over our heads and unlike many now adays not worrying about our house that we spent to much money on getting forclosed on.  

Answer 2

You could rent either an apartment or an existing mobile home for a while until you get everything figured out. In this market, renting's not throwing money away, it's actually prudent when prices are falling.

If you do decide to buy new, you want to be sure of the options you choose. It's not that hard to make changes, but it's not like stick-built homes -- you need to worry more about weight and materials, etc. Also make sure that you can actually put it on your relative's property -- many places don't allow it.

If you do own the land, it's easier to get financing on the land/home combo.

Mobile homes are a great option, particularly if you own the land. Make sure you buy insurance.  

Answer 3

.  You can do this.  Mobile homes are more like refrigerators than houses.  THey go down in value every year.  That is why banks don't like to loan on them.  YOu can get a good loan with $10,000 cash down. With zero down, you may be paying 10% interest for 30 years.  Sounds terrible but you can refinance later when you have made 12 months of on-time payments.

Once you live in a mobile, you will enjoy it.  They are fine.  You can buy one older than 1977 and get it for $4,000.