We could buy the manufactured home for $25,000 @ 15 % simple interest or rent a house with 2 bedrooms, one bath for $420.00/month. The manufactured home has 3 bedrooms and 2 baths and comes with all new appliances. (fridge/freezer, microwave, dishwasher, washer/dryer,stove) lot rental would be $150/month. We just can't seem to decide because the house has no heat/air and is high on electricity bills in winter, and the manufactured home has central heat/air but depreciates in value over time and is more costly as opposed to staying where we are at but it would be OURS as opposed to the rented house. We need an objective opinion either the rented house or the manufactured home. Buying a house is not an option right now. I have also heard that if a manufactured home is put on a permanent foundation it doesn't lose it's value. If you need more details please specify them and I will include them if needed. I will pick the best answer. Thank you!
2007-07-14 21:28:29 · 6 answers · asked by zekemilli4 3 in Business & Finance ➔ Renting & Real Estate
This manufactured home and the house are located in Tennessee.
2007-07-14 22:24:05 · update #1
Don't buy a manufactured home!! A manufactured home is like buying a car. It depreciates with time!! Do not let anyone tell you different. I work in mortgage finance and we wont even refi or give a 2nd mortgage on a manufactured home because in all reality per lending guidelines its not a house! The permenant foundation is a myth!! The the value will decrease! I turn countless people away per day that call my office asking for help on loans with a manufactured home and it breaks my heart everytime to be the person to tell them the bad news that its not a home regardless of upgrades additions or foundations!!! That we can not help them!! Whoever is telling you that is just trying to get you to buy the home!! Call any major lender and ask if they will refi or give you a 2nd mortgage on your manufactured home..they will all tell you NO!! By lenders I mean like the big lenders like Citibank, WAMU, Countrywide ect. It is better to save your money and buy a house!! Until then rent a home. You are just throwing your money away if you get a manufactured home as you will not get any profit out of it to buy a home when you are ready!! So do not count on selling a manufactured home to help get a downpayment on a real home!! And just an fyi 15% is an outragiously high interest rate! So if you decide to get the home I would shop around for a better loan if I was you. Good luck!
2007-07-14 21:38:57 · answer #1 · answered by cutegirl 2 · 0⤊ 0⤋
If you don't know yet...
Manufactured homes are built from the CHEAPEST THINGS a builder can find. 10 years after any manufactured home is built, it cannot be insured. No insurance company will do so. Therefore it's EXTREMELY hard to sell.
Why do either? Nowadays unless you live in an area where house payments are twice as much as rent, it's never a good idea to rent. (It's called BUILDING EQUITY)
Another point... unless it's a specialty item. (Star wars toys, vintage clothes, baseball cards) AGE LOSES VALUE. (You said so yourself)
That goes with homes and cars as well. Don't let anybody tell you that if you put a plastic house on a lot, life in it for ten years and sell it, you'll get the same price. That's damn near laughable. It doesn't MATTER if it's on private property or not.
You have to think about what people WANT... nobody wants a USED manufactured home... they want a new one.
It's also very good that want an objective opinion. Because all of that ISN'T just IMO... it's fact.
NOW on to the IMO.
Buying a house isn't optional right now.
I would ask where you live, because in some states, right now it's so much better than renting you'd be crazy to rent even for one month. Therefore I do say we need more details... what state is it?
At this point, if money is that tight, I'd actually rent the trailer, but I'd say the second it's enough to put a down payment o0n a house is the second you should get one.
2007-07-14 21:43:42 · answer #2 · answered by Kren777 3 · 0⤊ 1⤋
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2016-07-19 02:30:06 · answer #3 · answered by ? 3 · 0⤊ 0⤋
cutegirl is right! i'm a licensed mortgage broke as well as a licensed realtor. save your money and purchase a real home. 15% is extreemly high for anything other then a secured creditcard. a manufactured home is not a real home no matter what you do with it and most traditional mortgage lenders will not lend a penny on them. interest rates are climbing but they are still historiclly low for home mortgages. if you have to rent then do so for a short time to save money for a downpayment and closing cost and buy the real thing.
2007-07-15 01:23:52 · answer #4 · answered by Leroy M 1 · 0⤊ 1⤋
The manufactured home is a asset, it'll never come down in price and if you keep it up, will give you an investment. If you simply want to be comfortable and don't want to mess with utilities and troubles that home owning could bring, then a rental.
This is a personal choice.
2007-07-15 00:04:06 · answer #5 · answered by cowboydoc 7 · 1⤊ 1⤋
it incredibly is honestly extra suitable to choose for the fixer top if the fee is the comparable. you have many extra concepts whilst it comes time to sell. synthetic residences honestly depreciate. you do not have plenty administration over that. you will desire to put in a $20K bathing room and it nonetheless won't make a good number of a distinction. In a stick-geared up abode on your person lot, you will get maximum of that $20K back once you sell. regardless of in case you do no longer something, the land would desire to hold onto or boost in fee.
2016-10-21 08:35:28 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Rent money, is dead money. I would only recommend renting as opposed to buying if it were a temporary situation and you were going to buy in the near future. If you don't have a better buying option for the near future then I would say buy away.
Good luck.
2007-07-14 21:32:48 · answer #7 · answered by Ms_S 5 · 1⤊ 1⤋