What are the risks involved when buying a modular home? What questions would you ask if buying a modular home?
My husband and I are trying to move out of his parents basement and it looks like that is all we can afford. Just need to know what i will get myself into
2007-09-11 11:02:01 · 5 answers · asked by Emily R 2 in Business & Finance ➔ Renting & Real Estate
Modular homes are treated the same as stick built homes. They are just as strong and will appreciate in value. When dealing with financing they are treated as a construction loan that is transfered into a permanent mortgage (same as stick built homes). Modular homes are built in factories but still require a local builder to finish them. Make sure your modular factory and your local builder are both good.
Mobile home trailers (like double and triple wides) are not considered modular homes. Some retailers will use that term since "mobile homes" have a bad reputation.
Whatever you decide on just make sure it is placed on a permanent foundation (either slab or full basement). Mobile homes are built on steel frames. If someone tries to sell you a home on a steel frame according the to HUD code - they are trying to sell you a mobile home trailer. They will depreciate in value and are hard to finance.
2007-09-13 07:07:33 · answer #1 · answered by cathym 3 · 1⤊ 0⤋
I would consider these things first:
1. Are there many tornadoes in the area that I live or will live?
2. How expensive will the heating and cooling bills be?
3. Who repairs the modular when something happens, what are some of the commonly needed repairs and how expensive are expensive are they?
4. What type of neighborhood would the modular be located in? Do I want to live there?
Good luck!
2007-09-11 11:12:44 · answer #2 · answered by amy 3 · 0⤊ 0⤋
The risks involved in purchase of a modular home are obtaining financing at a reasonable interest rate, and then attempting to resell the home, should you decide to move.
Conventional mortgage lenders are not considering financing such structures with less than a 35% downpayment. Additionally, when it comes to attempting to resell the structure, you may well discover that it has dropped in value, rather than retaining value at even what you paid for it. I recommend renting living facilities until you can afford conventional housing.
2007-09-11 11:44:25 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
Yes, it's legit. You can get a VA loan for any permanent structure that will be your home. As long as the modular is on a permanent foundation and is not movable, it's fine.
2016-05-17 08:49:58 · answer #4 · answered by ? 3 · 0⤊ 0⤋
Research the seller throughly. If improperly assembled you will have nothing but a mess.
2007-09-11 11:05:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋