NationStates Jolt Archive

This past week Mrs. C and I went to Northwest Louisiana and got started on our retirement house. The mortgage broker is working the loan and all looks good. He is getting an apprasial on the land we bought 18 months ago so we can use the equity we have in the land as a part of our down payment. Looks like the land has gone up about $3,000.00 since we bought it. :)

The manufactured home dealer gave us an estimate on the home and has gone to the factory for pricing. The contractor has been out to the property and given the estimate for the pad, septic, electric, and water. :)

The house is a four bedroom, three bath with a huge kitchen, master bedroom and bath. Mrs. C has classified the closet in the master bedroom as a "live in closet."

You can see the photos here http://www.sehomes.com/customer/morephotos.php?model=EZ-439 click to enlarge the photo.

The floor plan is here http://www.sehomes.com/customer/showpic.php?filename=EZ-439-fp.jpg&type=fp&model=EZ-439

The final approval on the mortgage should come through in about two weeks, then the final order for the house will be placed. Four to six weeks after that the house will be delivered, then another fourish weeks for set up. Then the final closing.

So, what do you think of the house?

P.S. Mrs C has already decided to turn the computer room into a dining room and the dining room into a morning room. I'll change one of the extra bedrooms into an office / computer room.

congratulations!

Make sure it isn't built on an Indian Burial ground.

Make sure it isn't built on an Indian Burial ground.

Well, there is a mound in the middle of the property :eek2: but it appears to be the dirt they dug up when they put in the septic tank. At least I hope it is. I also hope the big gas field they found in Louisiana sits in part directly below us. They estimate royalties at $75.00 per month per acre. Well, $75.00 a month may not be much but it's better than a stick in the eye. :)

*takes notes of floor plans*

Yes..these will be useful..

*flees with plans*

Make sure it is built on an Indian Burial ground.

fixed.

So, you borrowed for the down payment and also for the trailer? Who gave you a mortgage for a trailer? They depreciate faster than cars?

The house is a four bedroom, three bath with a huge kitchen, master bedroom and bath. Mrs. C has classified the closet in the master bedroom as a "live in closet."

You can see the photos here http://www.sehomes.com/customer/morephotos.php?model=EZ-439 click to enlarge the photo.

The floor plan is here http://www.sehomes.com/customer/showpic.php?filename=EZ-439-fp.jpg&type=fp&model=EZ-439

The closet looks the size of BR3.

So, you borrowed for the down payment and also for the trailer? Who gave you a mortgage for a trailer? They depreciate faster than cars?

No, did not borrow for the down payment. We will be using about $12,000.00 in equity in the land and cash to pay the 20% down payment and closing costs for land / home package.

It is a very common misconception that manufactured homes depreciate. If they are placed in a manufactured home park the chances are high that they will depreciate, but if you put them into a land / home package they will appreciate or depreciate in value just as site built homes will appreciate or depreciate. Also, the quality of manufactured home can make a huge difference.

Here is a great link to an excellent site that has a lot of answers to questions about manufactured homes. The home we are getting is a very good quality home and we have added a lot of upgrades. The home itself with the upgrades is about $40.46 a sq. ft. When we add in the site preperation and land it still comes out to about $45-46 a sq. ft. You can't touch a site built home for that price.

The key to getting a quality manufactured home and a good deal is research, research, and more research. Mrs. C and I have been researching them for over 10 years. We are very happy with the quality of the home and the reputation of the dealership we are working with.

Congratulations. Nice house.

Just a couple of questions about the layout, though. You enter the master suite from the dining room/kitchen - seems odd to me. In the guest bathroom there seems to be a hall that starts nowhere and ends nowhere, but no tub or shower - misprint?

Otherwise, the master suite is quite luxurious, especially the master bath (no double sink though) - I want that tub. And the house has a fireplace!

Just shows modular homes are getting more and more posh.

No, did not borrow for the down payment. We will be using about $12,000.00 in equity in the land and cash to pay the 20% down payment and closing costs for land / home package.

It is a very common misconception that manufactured homes depreciate. If they are placed in a manufactured home park the chances are high that they will depreciate, but if you put them into a land / home package they will appreciate or depreciate in value just as site built homes will appreciate or depreciate. Also, the quality of manufactured home can make a huge difference.

Here is a great link to an excellent site that has a lot of answers to questions about manufactured homes. The home we are getting is a very good quality home and we have added a lot of upgrades. The home itself with the upgrades is about $40.46 a sq. ft. When we add in the site preperation and land it still comes out to about $45-46 a sq. ft. You can't touch a site built home for that price.

The key to getting a quality manufactured home and a good deal is research, research, and more research. Mrs. C and I have been researching them for over 10 years. We are very happy with the quality of the home and the reputation of the dealership we are working with.

How exactly are you "using the equity"? You took out a loan on that equity right? If not, did you sell the land? There's no other way I know of to "use your equity".

I don't want to alarm you but.. oh, it's probably nothing...

..it's just that if I were a terrorist and I wanted people not to suspect me while I did my terrorizin', a house would be the perfect disguise. No one's going to suspect a house right?

I'm not saying your lovely new house is DEFINITELY a terrorist, but to be on the safe side you better burn it down and see if it says "ouch". If it doesn't, it's safe and you can build it again. But then THAT house...

Ye gods, man, how many people are going to be living that thing? It's got a live-in bathtub.

lol

...

coughblogcough

How exactly are you "using the equity"? You took out a loan on that equity right? If not, did you sell the land? There's no other way I know of to "use your equity".

You don't have to have your land paid off to use the equity in it. He still owes the original amount on the loan, but the appreciation on the land is paying the down payment on the house, I assume?

You don't have to have your land paid off to use the equity in it. He still owes the original amount on the loan, but the appreciation on the land is paying the down payment on the house, I assume?

Not that I know of. However, I haven't been in the mortgage business for a while, meaning ever. I just deal professionally with people who do stupid shit like take out 3 mortgages to buy a house.

Congratulations.

How exactly are you "using the equity"? You took out a loan on that equity right? If not, did you sell the land? There's no other way I know of to "use your equity".

We purchased the land 18 months ago for $21,000.00. We now owe $12,000.00 on the land giving us $9,000.00 equity. The land has appreciated and is now worth $25,000.00 giving us an additional $4,000.00 equity for a total equity of $13,000.00. Equity in the land or house is the difference between the amount you owe and the value of the house or land. We can use that equity in place of cash for part of the 20% down payment.

Ye gods, man, how many people are going to be living that thing? It's got a live-in bathtub.

Two, plus any guests that might come along.

We purchased the land 18 months ago for $21,000.00. We now owe $12,000.00 on the land giving us $9,000.00 equity. The land has appreciated and is now worth $25,000.00 giving us an additional $4,000.00 equity for a total equity of $13,000.00. Equity in the land or house is the difference between the amount you owe and the value of the house or land. We can use that equity in place of cash for part of the 20% down payment.

NO, I understand what equity is. I don't understand why you think it's actual money sitting there. Equity is an imaginary amount of money that you "could get" if you sold your property, it's not like in an account somewhere. There are two ways to get it to turn into real money, the first being selling your property (profit) or taking out a home equity loan.

Not that I know of. However, I haven't been in the mortgage business for a while, meaning ever. I just deal professionally with people who do stupid shit like take out 3 mortgages to buy a house.

The far better question is what bank is doing stupid shit and granting those third mortgages?

The far better question is what bank is doing stupid shit and granting those third mortgages?

That I can't answer. Most of the people I know that have 3-5 mortgages have them through different banks and quite possibly lied about income.

This past week Mrs. C and I went to Northwest Louisiana and got started on our retirement house. The mortgage broker is working the loan and all looks good. He is getting an apprasial on the land we bought 18 months ago so we can use the equity we have in the land as a part of our down payment. Looks like the land has gone up about $3,000.00 since we bought it. :)

The manufactured home dealer gave us an estimate on the home and has gone to the factory for pricing. The contractor has been out to the property and given the estimate for the pad, septic, electric, and water. :)

The house is a four bedroom, three bath with a huge kitchen, master bedroom and bath. Mrs. C has classified the closet in the master bedroom as a "live in closet."

You can see the photos here http://www.sehomes.com/customer/morephotos.php?model=EZ-439 click to enlarge the photo.

The floor plan is here http://www.sehomes.com/customer/showpic.php?filename=EZ-439-fp.jpg&type=fp&model=EZ-439

The final approval on the mortgage should come through in about two weeks, then the final order for the house will be placed. Four to six weeks after that the house will be delivered, then another fourish weeks for set up. Then the final closing.

So, what do you think of the house?

P.S. Mrs C has already decided to turn the computer room into a dining room and the dining room into a morning room. I'll change one of the extra bedrooms into an office / computer room.

Assuming you'll be using it, a fireplace means climbing onto the roof to clean the chimney (or paying someone to do it). Also, IMO the master suite needs a door from the living room, possibly instead of the door from the dining room (or morning room, as you stated it will be). My final suggestion would be to keep the dining room where it is (it's a logical placement for it, next to the kitchen), and if your wife is dead set on having a morning room, I'd convert the computer room into one.

Assuming you'll be using it, a fireplace means climbing onto the roof to clean the chimney (or paying someone to do it). Also, IMO the master suite needs a door from the living room, possibly instead of the door from the dining room (or morning room, as you stated it will be). My final suggestion would be to keep the dining room where it is (it's a logical placement for it, next to the kitchen), and if your wife is dead set on having a morning room, I'd convert the computer room into one.
the dining room is only used on holidays when you have lots of guests. its far better to have a morning room next to the kitchen since that is where you eat the vast majority of your meals.

but i agree about the door to the MB. its better to be throughthe livingroom and convert that little booky entry from the dining room into pantry space. too bad that walk-in closet cant be cut up a bit so there is room for a big freezer off the kitchen.

The far better question is what bank is doing stupid shit and granting those third mortgages?

That I can't answer. Most of the people I know that have 3-5 mortgages have them through different banks and quite possibly lied about income.

This is part of the reason (well a very major part) of the sub prime mortgage crisis because a lot of Asset backed securities had these mortgages in it, which had honeymoon rates at first and have now gone up over time.

A lot of banks gave out NINJA mortgages (No Income No Job no Assets) over the past ten years, due to deregulation in the banking sector people did not really have to lie and banks are (where) a lot more lenient in lending out money to people thus people were able to access these loans.

About 30-40 years ago as banks were the only ones lending it would have been a lot harder for people to get loans because banks were stricter in whom they lent to (some bank managers even red lined whole suburbs), this is no longer the case. That is very vague as I am about to go to bed and if you want to know more just ask.


Ceut, is that a sink in Bedroom 4? And what is that bit coming off from the master bedroom en suite (if I can call it that but there is no doors) the room that goes behind the stove?

NO, I understand what equity is. I don't understand why you think it's actual money sitting there. Equity is an imaginary amount of money that you "could get" if you sold your property, it's not like in an account somewhere. There are two ways to get it to turn into real money, the first being selling your property (profit) or taking out a home equity loan.

From memory they borrow against the equity of the house. I am not to sure, the house is worth something and they borrow money against the value of the house, it is similar to using the house to buy the house.

A lot of people do it, sometimes to help their kids buy their first house, it can be dangerous to do and is something which should be thoroughly investigated as it is possible to lose out on and is certainly not for everyone.

From memory they borrow against the equity of the house. I am not to sure, the house is worth something and they borrow money against the value of the house, it is similar to using the house to buy the house.

A lot of people do it, sometimes to help their kids buy their first house, it can be dangerous to do and is something which should be thoroughly investigated as it is possible to lose out on and is certainly not for everyone.

Yeah, there's basically two ways to do it, you can get a home equity loan, which puts a lien on your house (basically a second mortgage) or a HELOC which is like having an equity credit card. Either way you are putting a lien on your property and either way you are borrowing money you have to pay back with interest.

Unless there is something new under the sun, he has a loan for the land, a home equity loan on the land that he's used to pay the down payment and then a loan on the "house".

Ceut, is that a sink in Bedroom 4? And what is that bit coming off from the master bedroom en suite (if I can call it that but there is no doors) the room that goes behind the stove?
That is a sink :eek:

And I believe that is a window in the walk-in closet/bedroom.

i assume those are typos. like the HALL in the guest bathroom instead of a shower.

although i have no idea what that would be in bed4...maybe shelving?

and a closet that deep can use a window.

The far better question is what bank is doing stupid shit and granting those third mortgages?

There is no third or even second mortgage on this. There will be a 30 year conventional loan at 6.875%. Let's say the total value of the home, land, and land improvements is $145,000.00. A 20% down payment would be $29,000.00. That down payment will be made with $16,000.00 in cash and $13,000.00 in equity that we have in the property.

The total amount of the loan would then be $116,000.00. That plus the $16,000.00 cash down payment will be used to pay off the balance owed on the land, improvements to the land, and the dealership for the house.

Just like any equity. If you own a home valued at $145,000.00 and owe only $116,000.00 on the note you have an equity of $29,000.00. If you wanted to do so you could borrow against that equity, or if you sold the house that 29k is yours to pocket.

Same thing with the land / home we are getting. The main reason for the 20% down is so we don't have to pay PMI and the reason for using the equity in the land as part of the down payment is so we will not pay out the $13k in cash.

That I can't answer. Most of the people I know that have 3-5 mortgages have them through different banks and quite possibly lied about income.

Having more than one mortgage is a stupid thing to do. Also, any financial institution that does not verify a person's income etc, for a mortgage is asking for trouble. We have to provide proof in income, bank statements, 401k balance statements, and tax returns for the past two years. The finance company also checks out what our total debt is so they can figure the income to debt ratio.

I place a lot of the blame for the current mortgage crisis on the financial institutions as well as the people who borrowed more than they could afford.

but i agree about the door to the MB. its better to be throughthe livingroom and convert that little booky entry from the dining room into pantry space.

Makes it easier to stumble into the kitchen for a midnight snack or a cup of coffee in the morning. :) We originally wanted a pantry, but with that much cabinet space in the kitchen we probably won't need one. If we find out we do need one we can always convert the hall closet into a pantry, bit I don't think we will have to.

too bad that walk-in closet cant be cut up a bit so there is room for a big freezer off the kitchen.

There is enough room in the laundry room for our big freezer. Mrs C plans on putting a vanity in the MBR closet.

Makes it easier to stumble into the kitchen for a midnight snack or a cup of coffee in the morning. :) We originally wanted a pantry, but with that much cabinet space in the kitchen we probably won't need one. If we find out we do need one we can always convert the hall closet into a pantry, bit I don't think we will have to.



There is enough room in the laundry room for our big freezer. Mrs C plans on putting a vanity in the MBR closet.
yeah it does have a splendid amount of cabinetry.

and good on that freezer thing. there arent enough dimension listed for me to tell that theres enough room for it in the LR. a freezer is a great thing to have.

have you seen this house "live"?

Ceut, is that a sink in Bedroom 4? And what is that bit coming off from the master bedroom en suite (if I can call it that but there is no doors) the room that goes behind the stove?

That sink and "HALL" are in the hallway bathroom. It has a tub shower combination, two sinks and a toilet. The entry to it comes off the hall. Behind the stove is the master bedroom closet and it does have a door to it off the master bath. There are no doors between the master bedroom and the master bath. Just a wall that you can walk around either side.

Unless there is something new under the sun, he has a loan for the land, a home equity loan on the land that he's used to pay the down payment and then a loan on the "house".

Nothing new under the sun. Currently I have one loan on the land with a balance of about 12K. The cash portion of the down payment will come from savings, not another loan. When we close, the balance on the land will be paid off and we will have one conventional fixed rate 30 year mortgage for 20% less than the appraised value of the land and home combined. Just like any other house where the buyer used cash for the down payment. The advantage of 20% down is you don't have to pay a PMI which saves you quite a bit on your monthly payments.

For those who are not familiar with PMI it is an insurance the borrower pays to protect the lender in case of default. Anyone who buys a house with a conventional loan and has less than 20% down has to have PMI. If you finance with FHA you pay a monthly mortgage insurance no matter if you make a down payment or not. If you go with a USDA Rural Development Loan, you pay 2% of the amount of the loan for the mortgage insurance and they will roll that 2% into the loan.

have you seen this house "live"?

Yes. Originally we were thinking of another model. The dealership in Louisiana didn't have it in stock. So, when we got there the salesman gave us the floor plans to about a half dozen units he had on the lot and told us if we didn't find anything we liked he could order the one we were interested in. We looked at all six or seven he gave us the plans for and we narrowed it down to two. We then went back to those two and decided on one. It was the kitchen that did it for us, we always knew we wanted a big kitchen. We have been researching manufactured homes for over 10 years now.

Yes. Originally we were thinking of another model. The dealership in Louisiana didn't have it in stock. So, when we got there the salesman gave us the floor plans to about a half dozen units he had on the lot and told us if we didn't find anything we liked he could order the one we were interested in. We looked at all six or seven he gave us the plans for and we narrowed it down to two. We then went back to those two and decided on one. It was the kitchen that did it for us, we always knew we wanted a big kitchen. We have been researching manufactured homes for over 10 years now.
thats what i love about manufactured homes. there are so many options and you can almost always see them live.

and if you decide that you need a few things changed, its not a big deal usually.

and they are much better made now than they were in the past.

You seem to have plenty of room so might I stop by for some Cajun cooking?

You seem to have plenty of room so might I stop by for some Cajun cooking?

Only if you suck the crawfish heads when you eat them. :eek2: That's where all the good juices are. Yum, boiled mud bugs. :)

I place a lot of the blame for the current mortgage crisis on the financial institutions as well as the people who borrowed more than they could afford.

You have hit the nail on the head, after the Glass-Stegall Act was repealed in America in 1999 which allowed mortgage originators backed by investment banks to make loans, willy nilly, and thus because of this increase in competition commercial banks lowered their standards (as I said last night they used to have whole suburbs red lined). The mortgages owned by the banks and mortgage originators which was given to the investment banks was securitised and thus the banks didn't give a damn about ensuring that loans would not turn into doubtful debts.

And yes people should never have borrowed more than they could afford, however, they were lured into it by 'honeymoon' rates and the fact that it was easy to get access to them as I said a lot of NINJA loans where made, it doesn't help that in America you only need to hand back the house if you can't afford the repayments, if the bank could repossess more assets to get its money back that might just make people stop and think before they go ahead and do it.

That sink and "HALL" are in the hallway bathroom. It has a tub shower combination, two sinks and a toilet. The entry to it comes off the hall. Behind the stove is the master bedroom closet and it does have a door to it off the master bath. There are no doors between the master bedroom and the master bath. Just a wall that you can walk around either side.

According to the plans you provided the sink I am referring to is inside BR#4, not the bathroom on the opposite side of the hall.

That is one huge closet!!!!!!! So large that it even has its own window, well I suppose the older you get the more clothes and little items you collect and we all need somewhere to store them. Do you have a few sheds on the property?

Also in the Living room between the windows, is that a fireplace?

It certainly looks like a good house.