A ? about getting approved for a loan, either a bank or non-conventional

Discussion in 'The Watercooler' started by MidwestMom, Mar 25, 2013.

  1. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    I'm not very good at this. Maybe somebody else knows.

    Hub and I, as I've said in the past, have to leave our house that we rent in 1 1/2 years and me, being the consummate worrier, am already planning what to do next in advance. We will be losing a lot of money. First of all, Sonic's adoption subsidy stops as he moves out and turns 21. Secondly his $200 social security also goes with him and, once he moves out, all of his SS has to be spent and documented for his use only. While he is at home, it is ok for us to use some of it for utilities etc. because he is contributing to the house (we actually use very little of that).

    We don't make much money so we need to downscale to a place where the bills will be much less.

    Our situation is that we filed bankruptcy 2 1/2 years ago, but our credit ratings are climbing into the high 600's now. Our landlord, bless him, will be a great reference because we've never missed paying rent once in almost five years here and we're his only tenant who has been that "on it." Also, thankfully hub has been at the same job for ten years and, although he doesn't make a lot of money, he has stability there.

    Our choices are an apartment, a mobile home park with a decent newer mobile home, and another rental that is much smaller so that the utility bills go down. We will not give up either of our small dogs, which pretty much rules out an apartment, which didn't appeal to us much anyway since we'd have neighbors on both sides of us and upstairs too (maybe downstairs). I don't think a ny apartments allow two dogs, even tiny ones.

    Mobile homes are hard to get loans for, but a few really nice ones around here have lenders they work with or you can rent to own and own in four years. Of course, you still have to pay lot rent. Our lot rents tend to be low, in the 300's. I guess we would have to go around and talk to the residents to see how much the lot rent goes up in the parks of our choice...and if they are happy with the landlords. We can do that. But we want a nice house with a sloping roof and one that is no older t han 1990. I wonder if we can get a loan for $20,000. We can get a really nice, fairly new two bedroom, 1 bath for that price.

    Our other choice is to try to find a small house to rent and allows pets (many do). But we really don't want one more than 1000 sq. ft. because we don't want high heating and a/c bills and since it will just me hub and I by then, at least full time, we don't need a lot of room.

    Anyone have an input? This is a confusing post so if I get no feedback...I understand...lol. Ideally I'd love to find a manufactured home with land, but unfortunately the combination is almost as expensive as a cheap home in our area, which can be as low as $50K. I do not think we can get a loan for $50K and, at our ages, we don't want thirty year mortgages.

    Anyone stilll with me? LOLOL!
  2. DammitJanet

    DammitJanet Well-Known Member Staff Member

    Pam, Im not sure where in WI you live but I get the impression you dont live in a very large town so I would think you could get a pretty nice single wide mobile home on a small private lot for a heck of a lot less than 50K. I would start now looking for the small lot. You just might stumble across exactly what you are looking for with everything on it. I just found a wonderful buy if I could afford it. A fairly small completely remodeled 2 bedroom 1 bath, that was remodeled using all house products instead of mobile home products, 10 acres of land with a small pond stocked for fishing, posted for private hunting, fenced around the entire mobile home in 1 acre, a 20 x 20 work shop included. All for the low low price of 28K. Its located about 30 miles from me. If I could sell my place for even close to that amount I would hop on it but I doubt I could and it would probably be sold fast anyway.

    Check on craigslist. You can find pretty good used mobile homes around 10 years old if they are single wides for no more than 6 to 8 thousand. If you can find a half acre lot for about 5k, you are set. The biggest issue would be if the lot doesnt have city sewer and water which would mean you have to sink a septic tank which would run you another 2 grand or so. Most likely you could get in for around 12K or you look for a place already set up on a private lot for sale by owner.
  3. HaoZi

    HaoZi CD Hall of Fame

    Yes, if you're buying a mobile home, make sure it's one you don't have to move - sometimes they expect you to move it to your own lot.
  4. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    Actually, around here, with land, it's about $50-70K.
  5. Lothlorien

    Lothlorien Active Member Staff Member

    Call a mortgage broker. They can check with many different companies to see what you can be approved for. Get the pre-approval so you know what you can afford. Are you putting anything down? I don't know much about mobile homes, but with a regular home, you need to put some money down, unless it's a VA loan and even those are hard to get 100% financing. Apparently, after June 1, if you don't have 20% equity in the home and you pay PMI, you will pay PMI for the life of the loan, unless you refi after you reach 20% equity. Again, this is just for a regular real estate purposes. I don't know how the rules change for mobile homes. I think, around here, the mobile home communities have finance companies that they deal with directly. You may want to call the office and see what the requirements are.
  6. recoveringenabler

    recoveringenabler Well-Known Member Staff Member

    MWM, if I am reading your post correctly, it seems that the first issue is, can you get a loan, how much and at what interest. And, the second issue, what kind of a dwelling it is you really want. To allay your fears, have you thought of going into your bank and talking to the agent to find out what you qualify for? Once you have that information, the rest should fall into place since you'll know how much you can spend on a home. If you can get that information right away, it will help to keep the worry away too.
  7. Signorina

    Signorina Guest

    MWM- are there any empty nest communities? I might check into those... I think they are often subsidized as well. I don't mean retirement homes- I'm thinking if the active adult over 50, independent living - usually condos or town homes.

    I always worry about mobile homes in our harsh climate. Between the blizzards and the spring storms/tornadoes ... I would check into heating costs and storm shelter availability. Our first home did not have a basement and after a few spring evenings holed up in a dry bathtub with a toddler - I swore I'd never be without a basement again. But I am a worrywart!

    You have 1-1/2 years. It's a great time to check out areas, think of what you want, dream a little, work on improving your credit history and start planning your empty nest. Explore all your options! A lot may depend on where Jumper lands too. Or if you decide to foster kids. Use the time to dream about your future - especially if you want this to be your last home.

    H and I have begin doing the same, our baby is 16, we have job potential in other states and we have often talked about moving when the kids are launched. We both find that adult communities appeal to us- we would hate to end up in a swing set neighborhood! And we love the idea of no more lawn care or snow removal, so we would want somewhere that would provide those services. We are still about 3-5 years away, so who knows?
  8. DaisyFace

    DaisyFace Love me...Love me not

    1 1/2 years is a long time...a very, very long time in terms of rentals...

    I think your time is best spent adding to your savings account and repairing any issues on your credit report. Obviously, the bankruptcy is a big one - but in 1 1/2 years you will be four years past filing....and a demonstrated record of on-time payments will help a lot!

    Good luck!
  9. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    We aren't going to go to another state because we are relatively close here to all of our children.

    I do worry about bad weather, but one of the best mobile home parks is across the street from a 24/7 Walmart so we could just go there in bad weather, regardless of the time and it's so huge that we could probably sneak our two small dogs in too, as long as they are in doggy carriers deep in the cart Sometimes I take them shopping with me that way and nobody even pays any attention...lol. If I have no basement, I'm going to flee if there is a weather report predicting storms. If we know in advance, this park is also owned by and attached to a hotel and we could rent a room for the night. I've figured all that out...lol. We don't have many tornadoes here. Funnily enough, in Missouri, where my son lives and tornadoes are king, their homes have no basements. I find that really, really weird.

    Not interested in an "old people" apartment or park. I like people of all ages and am remarkably young at heart. And many retiree parks ban pets and fight if you have your grandchildren with you. No thanks. I mean, granted they are usually in beautiful condition, but I'd prefer more chaos and young people and my dogs. My daughter has already said she wants to come home and visit a lot once she's in college and, believe it or not, the 55 plus crowd gets ticky when your grown kids under 55 are living with you.

    I don't like the idea of living attached to somebody else either upstairs or downstairs. I suppose I could stand a townhouse, but they are out of our price range. We need a less expensive place to live.

    I don't think a regular bank would take us because of our bankruptcy two years ago. We can put down about $3000, which is good for a mobile home, but not for a regular house.
  10. DDD

    DDD Well-Known Member

    Since you have time I would suggest that you use your computer to explore options...not financing options but home and neighborhood options. With the internet "Homes For Sale" usually allows you options that makes the search user specific.
    For example Mobile, 2br 1 b, price 25,000 to 35,000 will bring up listings that meet your criteria so you don't have to look at million dollar estates. You'll be able to see alot of possibilities and likely will find areas you know don't suit you as well as some you've perhaps never seen. easy child/difficult child has done this daily since October and it really saves time

    Regarding financing I don't know anything about mobile homes but I do know that we were shocked to find that most financial institutions did not accept applications for less than $50,000. What a world..sigh! But lenders usually are polite and helpful when people want to gather qualification information. It is "possible" to find residences where the sellers are willing to finance the sale because the interest rates are lower on savings accounts etc. than they can get for a home mortgage. You can check current rates online for both so you can see the difference. The other thing you can do on the net is "amortization". Enter your hoped for mortgage amount, plug in a mortgage interest rate and then enter the number of years you think you need to pay off the debt. You can quickly see how much for ten years or twenty etc. The payment will include the P and I. Don't forget you will also have taxes (annual divided by twelve) and home owners insurance premiums.

    Basically you can become an expert sitting in your jammies and having a cuppa. Good luck. DDD
  11. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    I do searches like that all the time, however we aren't leaving the area. Two of my kids are in Wisconsin and it's unlikely Jumper will leave the state...she loves it here. Julie, my older daughter, is in Chicago only 3-4 hours away. The only one kind of far is my 35 year old and my grandson so we're staying put. Not even changing towns by much. So we're left with what we have right here.

    Mobile parks do their own financing. The homes for $50K and under were so dilapidated I'd rather live in a cardboard box. On the other hand, you can buy a nice trailer for $25,000 and if you go used but still pretty new and nice, $15,000.
  12. GoingNorth

    GoingNorth Crazy Cat Lady

    As someone who lives in an older mobile home, be sure you have prospective purchases inspected by someone independent who is experienced in mobile home inspections.

    You want someone who will get UNDER the MH and check the grade on the plumbing and inspect the wiring, amongst other things. Make certain that you have the furnace and airconditioning (if equipped) inspected. MH furnaces are expensive and do not last like standard ones.

    I live across from a WalMart and have to run there to take cover during tornado warnings.
  13. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    Thanks. We will!!!!

    I like that Walmart being there...lol. On the other hand, it still boggles my mind that the state of Missouri has very few homes with basements. They are right in the middle of tornado alley and while we rarely have tornadoes here, they have them all the time. Makes no sense to me...
  14. nerfherder

    nerfherder Active Member

    It may be that Missouri has a high water table with no safe way for a basement to be constructed. Despite us being high desert/basin-range, we have that high a water table, no houses here have basements even though it would help moderate temps in the summer and winter. Even our root cellar is built at ground level (rammed earth/tire construction with soil over top.)
  15. DammitJanet

    DammitJanet Well-Known Member Staff Member

    We have no basement here either. Water table is about 10 inches down.

    Also look into HUD housing. Especially because you are disabled you can normally find housing for the disabled at very low prices. I saw one not to far from me for about 25K. Now it was in another town but at the time I wasnt interested in moving. You can find some that need fixing up or some that are totally okay. You might even find a duplex that would bring in retirement income.
  16. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    Janet, all of that is out of our price range. Duplexes about $80-100,000 or higher if you buy both units. I am sure we could get on a list for Section 8 housing because of the disability, but I don't want to live in a Section 8 house...usually it's an apartment with pet restrictions. Sonic is going into a very nice Sec. 8 apartment, but he WANTS to and he doesn't have or want any pets.

    Thanks for the suggestions though. Hey, what do you do during a tornado warning?
  17. DDD

    DDD Well-Known Member

    MWM you can just monitor your home area so it is not time consuming but you will see a pattern on values. One of the options is "own land" which limits the search even more. If nothing else it is fun to see what's going on. LOL DDD
  18. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    Oh, I love to look :)
    Unfortunately again buying land AND a nice manufactured house is out of our price range.
  19. Jody

    Jody Active Member

    I just bought my mobile home. I have terrible credit and they were able to give me an interest free loan thru the park. They did not jack up the price of the mobile home to make up for that. it's a nice three bedroom, 2 full baths with a shed and deck. It is in a country setting, but 8 minutes from town. Nice thermopane windows. My utilities were were 133.00 combined with good insulation and windows. lot rent 313.00 house payment 247.00 12.00 water. The mobile hoem was 15.150.00 and I did have to sign a contract that I would stay in the park for 5 years. It's quiet and I am backed up to the woods. Both Mobile homes are empty on both sides and I have a good sized yard. I love it and cant wait to garden and save some money on the food bill.
  20. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    Jody, you made my day. That's exactly what I want.