just read a thread regarding building a home....and thought maybe my wife and i could get some useful advice from some of y'all about our current situation.

moblie/manufactured vs. stick built

we have been looking for a home for what seems like an eternity!!!!

everything we like....we can't afford. everything we can afford....well you get the point. affordable stick builts on some land in 'average or better' condition are damn pricey around here. however, there are a lot of new mobile/manufactured homes on nice parcels of land well within our price range around here. but from what we're told mobile/manf. homes aren't very wise purchases for young/first time buyers. on the other hand....we've looked at some models at the "showroom" and we have to admit that they are very nice. what to do???

 

mobile homes depreciate in value, stick built homes appreciate in value.

I know you think its debt, but its good debt. Even if you have to have a thirty year mortgage, its all the better. I'm sure that in a few years, prices will double in your area. Even if it doesn't seem worthwhile, right now, in a low interest, low depression market, you are the winner, even if you have to take a slightly higher interest rate.


good luck, hopefully yo can figure out how to get into a home ASAP.

 

If you buy a good manufactured home and have it put on a basement you will like that.
Stay away from the slab stuff unless thta what they do in your area. They usually arrive in two halves and get put together...just get the best one you can...

Dick ... Carpenter for 20 years

 

Manufactured homes are much better than in the past. Always remember you get what you paid for. They are now building them with 2x6 walls, rafters, etc... You should get a basement under it if you can afford to do so. Check to see about things like plumbing and get copper water feed lines, watch to toilet stuff some are made of plastic which you do not want. Most come ready to move into but watch quality of appliances be sure they are somewhat of a good brand or carry a good warrenty. There is nothing wrong with the newer ones always remember "HOME IS WHERE YOU HANG YOUR HAT". My neighbors just had one placed on their property for ~41,000 and it looks great it came with everything except people. I say if that is what you want then go for it... PS; try and find one in the lot that is 1-2 years old but not titled and you will save a bunch. good luck.

 

most...if not all mobile/manuf. homes in the area are on concrete slabs...basements don't seem to be an option. in fact...of all the homes we've seen in the area (including stick built), the vast majority don't have basements. a lot of flooding issues i assume. we're relatively new to the area so i'm not sure though. gonna be a tough decision....that's the only thing i'm sure about.

when we were looking at some models a salesman offered to knock some big bucks off a 'show' home on the lot...it has been there for quite a while. really nice home. it's really tough to say....land is still reasonably priced here. hard to say no to a couple of acres, a nice new home, and peace and quiet. but, we don't want to make a bad investment either. yes, i totally agree that home is where you hang your hat....but i don't want my hat goin down the toilet any more than i want our hard earned money goin down it, by making a "bad" investment....

we'll see what happens. thx for the responses fellas.

 

there is no such thing as a bad investment when you buy a house, demand at least mid grade construction. High end construction would put you in the hole for a very long time, I can guarantee that, even if you built it yourself.

 

In general, mobile homes still do not appreciate as well as a stick built home. It is true that they are better built today than in the past, but the stigma from the past lives on. Why not find a stick built house that needs either cosmetic repairs or one that can be remodeled at a future date to suit your needs. Another hint: find the names of banks/mortgage companies that have wrote off loans rather than foreclosed on properties. This has the potential to save you many $$$, but you will have to identify the lenders and do some homework on properties. You will also need to have some financing lined up.

A buddy of mine is doing what I just mentioned. He found a double wide trailer on a lot that has a minimum value of $30K and a max value of, maybe, $45K. He did his homework and made an offer. Final price of $15K + back taxes + any closing costs. I established the minimum value of $30K by looking at the total dives that $30K buys. In my general area, anything for $30K has so many problems and issues, and not to mention the poor location, that nobody would even vaguely want to live in it. In this case, by comparison and even though it's a trailer, it's worth all of $30K if he were to sell it and he simply cannot lose on the deal. Even as a rental, it would fetch $350-$375 per month. Another benefit of chasing down properties that the lendor has done a write of on is that you have little to no competition. When the county gets the property due to failure to pay taxes, it goes to auction and you now have competition and the price goes up.

 

We're in Washington, too, and just about to start our second house with Lumbermen's. We've been in this one since '99, and now we're going to build a very similar house just tweaking a few things to refine it to our taste. Lumbermen's is a very flexible way to build. Their main deal is to build your shell, then you take over and hire the subs to finish, or do some of the work yourself. On our last house, we painted, floored, did cabinets, tile, interior trim, and interior doors. They will give you a list of subs that have worked out well for their other customers, so that gives you some confidence there with the electrical, plumbing, sheetrock, heating and insulation. Or, you could do some of that if you know how and want to. Or, Lumbermen's will do the whole thing for you, complete. We investigated the mfr home option thoroughly last time around, and were just about set to do it. Then, we asked about swapping out a bathroom for a bath floor plan in a different model (not custom, just a swap). When they said they could do it, and the charge was $1,000 I felt like I was on a used car lot. Lumbermen's has a selection of floor plans, and you can change them around how you like. They don't have fancy offices, and they're not a megacorp. If you're a little bit handy, this option could save you some bucks, and at the same time you'll get a real sense of accomplishment out of managing the project forward from shell stage, and putting your own sweat into your home sweet home.

 

Where I live the people that own the moblie home lots are selling them (kicking people off)

May want to own your land if you go the mobile home route.

 

I have to disagree. BOTH depreciate; it's the LAND beneath the home that appreciates. I have a 2-section modular on a basement, and the town has assessed it for the same amount as any similar-sized stick-built house around me. A mobile home sitting on a rented lot in a park will most likely depreciate because there's no real estate associated with it. A friend of mine has a doubelwide mobile in a "condo" park in Florida, and it's doubled in value over the years.

There is a difference between a mobile and a modular. A mobile home is built to a federal building code for manufactured homes, as where modulars are built to individual state codes, which are generally much stricter. A modular is built in a factory and assembled on the foundation in sections, conventionally-built homes are built on the foundation from scratch. That's where the differences end. I put up the modular in '85, and have never regretted it. I've had far fewer problems than friends and family that went the stick-built route. And there are far more options today (cape cods, colonials, custom features) than when I built.

As far as mobiles are concerned, even if they do depreciate, isn't that STILL better than paying rent? You're at least getting SOMETHING for your money; renting an apartment gets you nothing.

 

i am a mortgage broker, i deal with banks, lenders and realestate companies all day long.A MOBILE OR MANUFACTURED HOME DOES NOT APPERICATE AS WELL AS A STICK BUILT HOME!!! if at all. even when you get a loan for a man/mobile(alot of banks will not even lend money on them) you will pay a higher interest rate and will have to put more money down. it is not a good investment. plus after you are in a stick built home for a while you can cash out some of the equity of the home on a second mortgage if you need it, dont even think about tring to find someone to give you a second a mobile.

 

wlihntr-

What about modulars? Do your banks put a lower value on them as well?

 

I just spent some time looking around the 'net at modular home sites. I must say that I was completely wrong in my thinking where they are concerned. It looks to me like the differences between mod and stick is where the construction is done. I liked the idea that a mod would be constructed in a factory under controlled conditions. Also, it removes the situation of needing more $$ to finish building, builder no-show, etc. I would think that lenders would be more than glad to loan on a mod rather than stick. Your price is established up front, before building starts, and from what I read, stays the same--no unexpected changes. They also claim to be more energy efficient than stick built. And another definite plus is the time invested as compared to stick built. Seems to be alot quicker to completion.

 

my primary lender charges an extra 1.5 points on a prefab/mfg homes. which means if you could get 5.875% on a $200,000 loan on a stick house that same loan on a prefab would cost you an extra $3000.00 on top of the standard 1.0 point. so the origination on that loan would be $5000.00. plus you have to put a minimum of 20% down, on a stick house you can get a loan with 5% down

 

That's incredibly ignorant on the part of your lenders. I've had far FEWER problems with my house over 19 years than most people have with a stick-built in the first year or two. When there was a problem, service was great. Not too many people can say that about the vast majority of stick builders. I've got hardwood floors, finished drywall ceilings (not that "popcorn" crap most builders force on you), 2x6 walls, 2x12 floor joists, all on 16" centers. My modular is built to the EXACT same building code as the houses around me, but had to travel 240 miles on a flat bed, from the factory to my lot. How many stick-built houses would have made the trip in one piece (with only 2 cracks in the drywall)? To charge a HIGHER rate for a BETTER built house is beyond me.