By Tony Evans
Those of you looking to improve your credit standing to get back in the housing game should be on second base having already mailed your letter to the credit agencies, which will be placed in your file. If you’re still sitting on the bench, Coach Buzzz says “You won’t get to home plate if you don’t get off the bench.”
For anybody who missed Part One, the Coach gave you an example of a letter that needs to be included in your credit file and the three credit agencies mailing addresses to get started on gettting back in the game of home ownership.
Any lender searching your credit report will see your explanation and take it into consideration for future loans. Remember, you can get back in a home again and good ‘ol Coach Buzzz is going to lay it out for you. Tips accepted. No Canadian coins, please!
Brace yourself. Both options involve new manufactured homes. Before you start wringing your hands and rolling your eyes thinking, “Oh my, I wouldnt want to live in one of those things,” keep a positive thought. It’s better than living in a crowded apartment complex with “the party boys” as your new next door neighbors.
First option: Find an inexpensive lot for sale (at least 50 feet wide and 100 feet deep-zoned residential) somewhere around the city you currently live in or plan to move to. Make sure the lot has water and utilities on the property. After you find the right lot check with the city and/or county for building requirements and code restrictions before you make an offer on any lot. Then get pre-approved for a loan (see financing section below) before signing or submitting an offer.
Also, prior to closing get a title report on the property to insure its free and clear of liens/encumbrances. When your new manufactured home is set up on a permanent foundation it will be classified as a home for tax purposes just like a regular stick-built home.
Second option: Similar to option one, but in this case you dont buy property — you just locate the nicest family or senior mobile home park you can find in your area. In that park youre going to rent a space, which meets size requirements to accommodate your new manufactured home. Going this route, youll have fewer headaches since it will not be required to have a permanent concrete foundation. But before you do anything find out what the monthly space rent runs. If it stretches your budget, search other mobile home parks, but stay away from the older run-down places with homes that were built during the Nixon Administration. Remember youll have neighbors, so be choosy.
Now, here is the Inside Buzzz on financing. Veterans with eligibility can qualify for a VA loan. Youll need your certificate of eligibility. Both VA and FHA loans will finance the purchase of a manufactured home.
A relatively unknown loan program I have personally worked with many years may also finance the purchase, which is the rural housing guaranteed loan program. Try not to use “Dealer” financing if possible. It will come at higher interest rates and some dealerships may not have your best interests at heart. Buy only new double-wide homes no single wide homes.
Here are the best of the less expensive factory built homes: Cavco, Champion, Clayton, Fleetwood, Golden West and Skyline. You can get factory information on these home builders on the Internet. Purchasing a new 3 bed / 2 bath / 1,300 square foot home with every appliance inside, delivered and set up on your park space should cost less than $95,000. Not bad, huh! However, if you own your lot, construction costs could cost another $17,000. New manufactured homes can be financed for 15, 20, 25 or 30 years.
I personally have a lot of experience with manufactured home financing. I even wrote a book on the subject, which you can check out at: www.cyclepublishing.com. On the home page, click manufactured homes (left side column) which takes you to the M-home section. My book titled “Manufactured Home Financing” will he there.
Get More Inside Buzzzz
To read Tony’s other columns click here.