Manufactured homes?

topic posted Wed, February 8, 2006 - 2:11 PM by  David
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Bad news: My budget is limited to $200,000.

Good news: I can find manufactured homes on property that will work, and I can find undeveloped property that will leave me enough cash to put a manufactured home down.

Side note: I hate manufactured homes, but I'm taking what i can get.

I have basic questions about wells, septic systems, and the costs of putting a mfgd home on a piece of land. Are members here willing to help with them?

If so, I'll put up the individual questions as replies to this post.

Thanks!
posted by:
David
Seattle
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  • Re: Manufactured homes?

    Sat, February 11, 2006 - 2:04 PM
    I'd love to have that discussion.

    I am an agent, and a soon to be in the market home seller.... buyer myself. And manufactured homes are a great way, it seems, to buy something with, under-developed land... rather than "undeveloped" land.

    Undeveloped land has too many issues. Land clearing, septic, etc. Whereas a manufactured home generally has many of these things already on site. And therefore I then wonder what I can do to build on the site over the long term, from the base of the manufactured home, and maybe some pre-existing out buildings.

    I'd love to see Pak's thoughts.
    • Re: Manufactured homes?

      Sun, February 12, 2006 - 1:10 AM
      <I'd love to see Pak's thoughts>

      Scarey request, mate..

      In any event, I'm sure there ares some very cool mfct'd homes. The idea of having the "lot " already completed and the potential for future development, seems pretty sound to me as well.

      25 years ago, a friend of mine was building a spec home that was constructed in a warehouse and then assembled on site. It was a very nice place. Another friend & I did the drywall contracting, which was one of the more foolish things I've ever done, but thats another story.

      I guess you can go a few different ways with this one. Buy a decent quality manufactured/pre-fab home, either new or resale, or buy a cheaper model, and then have the option of remodelling-adding to either at a later date.

      Buying one of these homes can be an entirely different process, so to speak. The sales contract is different and the concerns are as well. I've sold them, but not recently. I'm wary of homes that are too portable (such as in a wind storm) and would look to anchoring it pretty soon. (Many of these homes are assembled on a foundation at the site, but many aren't.) I'm just not familiar enough with current building codes around this issue, but that should be easy enough to determine.

      Two other areas of concern are flammability (some of these homes are scarey; they all aren't built with the same fire protection that stick-built homes are.) and Toxicity. All that panelling and glued together stuff can be highly toxic. This is a problem in LOTS of homes, but it can be more pronounced in pre-fabs. I once sold a home to a local fire chief and learned a lot about fire safety issues that are covered by modern construction code: I was impressed with some, but I remember that he had concerns about others. I'd never thought about the issue before.

      All this wouldn't necessarily deter me, but they are concerns that bear attention.
      • Re: Manufactured homes?

        Sun, February 12, 2006 - 12:13 PM
        Secured to foundation was a big issue for lenders, when I did this last. They don't like lending on a place that can be driven off the lot. People apparently, I am told, were stealing the houses and then not worrying about the foreclosure... maybe urban legend, but one of my lenders that I work with mentioned this.

        The new manufactured homes are super cool though. I wonder about buying a real worthless place, and replacing it?
        • Re: Manufactured homes?

          Sun, February 12, 2006 - 2:18 PM
          Then its just a matter of lot value and demo/removal cost.
          • Re: Manufactured homes?

            Sun, February 26, 2006 - 4:39 PM
            i was told by one of my clients that it's really hard to get financing on a manufactured home and that i'd have to expect to put at least $20,000 down. Do either of you know why this is (if it's even true?) I have seen some for sale on land that i'm interested in, but my primary concerns have been the toxicity and permanence issues. Then i heard that bit about the financing and so i've stopped considering this type of home.

            m7
            • Re: Manufactured homes?

              Sun, February 26, 2006 - 6:08 PM
              I don't believe its necessarily hard to get financing, but there are different criteria. An oft heard phrase from a particular lender who doesn't offer or doesn't know about certain loans is: "Thats not available".. or a variation thereof.

              There may be different down payment requirements, but they are usually measured in percent, rather than dollar amounts.

              Sounds like you need to speak to your favorite lender about it. Many manufactured homes are indiscernable from conventional stick-built.

              A former room-mate of mine was selling them in Pierce County and I know he was pretty successful, so somebody is doing it. And since they are typically less expensive, it follows that the buyers have less income or down. This all leads me to believe that the typical lender probably is unfamiliar and resorting to the "can't do that" syndrome.
              • Re: Manufactured homes?

                Wed, March 1, 2006 - 12:35 AM
                My lender says it's a matter of how it's tied into the foundation. 100% financing is harder to get. 20% down, don't know? If you have great credit? I'd be happy to put you in touch with a mortgage pro that would talk you through it.

                Literally I've heard the main problem was the theft of the house off the land, as mentioned above.
                • Re: Manufactured homes?

                  Mon, June 26, 2006 - 8:47 AM
                  He's right. It's harder to get financed, because people actually steal the homes. I work closely with manu home dealers across the US. They're a great investment when you find the right buyer. You can get burned if you’re not researching the buyer. Some dealers do background checks. That's crazy!
                  • This is the maximum depth. Additional responses will not be threaded.

                    Re: Manufactured homes?

                    Mon, June 26, 2006 - 9:10 AM
                    I just did a quick search of manufactured home listings and sales in King County since 1/01/06 for the price range of $100K to $400,000. Most of the following are in the mid $100,000 price range with a couple in the mid 200's and one over $300K.

                    14 active listings: Average market time < 30 days
                    4 Sold Subject to Inspection : Most were on the market less than 2 weeks
                    4 Sold Pending: All were on the market less than 2 weeks.
                    10 Sold. Most with market times under 60 days.

                    Somebody's financing them. It may be tricky, but the ratio indicated with the stats is that people in a pretty low price range are finding their way through fairly frequently.

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