Sunday, March 06, 2005

Mobile homes may not be an alternative

A lot of people are getting their income tax refunds back and hoping to buy a home. I get a lot of calls from people who think Mobile Homes are a less expensive alternative than regular houses or condos. They have their $10,000 and they figure they can purchase a mobile home easier than a house. But that is just not true. If you are trying to purchase an older mobile home (over 10 years old) the lenders require a 20% (of purchase price) down payment. In the case of a $150,000 mobile home, that is $30,000!!! Then you get to add closing costs, not to mention the monthly space rental. Mobile homes are not always a less expensive alternative to houses and condos. You have to have a lot of cash to get into one. That said, mobile homes are still a good alternative for some folks.
Lorraine
Realtor

2 Comments:

At 3/07/2005 7:37 AM, Blogger Hope Goss, Realtor said...

I, too, have received many calls in the past few months about mobile homes. On the surface they seem like a less expensive alternative. However, they do require a larger down payment in many cases, the interest rate on the loan is usually higher, and when you add in the space rent you end up with a payment that could rival some condos in the area. Do all your homework and make sure this is the best alternative for you.

 
At 3/07/2005 1:49 PM, Blogger Lorraine Burns, Realtor said...

Amen - you said it all! I believe mobile homes are good for people who are on a fixed income yet have some cash to pay for the mobile home. Then all they are paying for is the space rent and the utilities.
Lorraine

 

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