Renting vs. Buying a Manufactured Home
Renting vs. Buying a manufactured Home
How do you know what makes more sense, renting an apartment or buying a mobile home? There are many factors that come into play, and the process of analyzing can be overbearing. So, here is a short and sweet post about where to start.
Not everyone is a CPA, and knows how to calculate the feasibility of buying a mobile home over renting an apartment. So, it is important to keep things simple. It comes down to two questions you must ask yourself if you want to own a manufactured home. If so, you must qualify for a manufactured home loan? Click to apply now.
If you decide that you don’t want to own and live in a manufactured home, stop reading now. If you are interested in becoming a homeowner and investing in your future, then read on.
Does it make Financial Sense?
First, take your current rent and multiply it by 12 (months) and then multiply it by 20 (years), then multiply it by 1.25 (to loosely account for rent increases). Now you know how much you will spend on rent over the next 20 years, and have nothing to show for it. If your rent is currently $500 per month, then you will spend about $150,000 over the next 20 years.
Do you trust the Real Estate Market?
In this market, it may be difficult to see real estate as a sound investment. But if you look at the big picture, it has traditionally been very strong. However, even with the recent housing market slump there has been about a 100% increase in housing prices. This means that if your $500 rent payment was made towards a mortgage, you could have a home worth $300,000 after 20 years, rather than nothing.
Can you get Approved for a Manufactured Home Loan?
The financial market meltdown has certainly made it more difficult to get financing for a manufactured or mobile home. However, there are still lenders and brokerage firms that know how to get you approved. You do have to be a very low risk to the bank, though. You must have good credit, no bankruptcy in the past 4-5 years, a down payment of atleast 10%, and a verifiable income. Taking all of this into account a mobile home mortgage broker can configure your ratios, and you are on your way to owning your very own manufactured home.
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One Response to “Renting vs. Buying a Manufactured Home”Good advice.
There are some other things you can do as a renter to set yourself up for ownership.
First –
ALWAYS pay your rent with a check. When it comes time to get a mobile home loan your lender will want PROOF that you have paid your last 12 – 24 rent payments on time. It is a good indicator to them about how responsible you will be in making your mortgage payments on time.
Make your payments ON TIME, EVERY TIME. Again, lenders will ask for a verification of rent and look at it to help determine your level of responsibility in terms of making a payment on a loan.
Maintain a solid paper trail of your payment history. In lending money (especially for mobile home mortgages) the only thing that counts is PROOF.
Proof IS 12 months worth of canceled checks.
Proof IS NOT a note from your land-lord. It doesn’t matter how well written the note is, it just just amount to anything of any real value. Don’t find yourself ready to buy and not having laid the proper ground work.
I have seen it too many times and I always try to tell customers how to set themselves up for success.
Michelle DiSantori