Home Buying in Little River>Question Details

Michael Nels…, Home Buyer in Fort Bragg, CA

The lease is only for 5 yaers then what happens I see alot of homes all in the same area did the all lose their lease?

Asked by Michael Nelson, Fort Bragg, CA Wed Mar 20, 2013

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It is true, the lease is for 5 years at a time. But, this is just for the use of the land the home sits on. You own your home, the lease is separate. Every five years you sign a new lease because they increase the amount you pay. So, if you purchase a home there and do not pay cash, you will have your monthly mortgage payment plus the monthly lease payment. My family has owned a home there for 36 years.
0 votes Thank Flag Link Sat May 3, 2014
Your question is confusing.

Most leases are for one year. Some are for two. Very few residential leases are for five years.

If you mean the mortgage is only for 5 years--rather than for 15 or 30--contact another lender or mortgage broker. A 5-year mortgage probably has a balloon payment at the end. Your payments are the same as if you had a 30-year lease, but at the end of the 5 years you have to refinance. A lot of people lost their homes maybe 3-5 years ago with just that type of mortgage, when they discovered they were unable to refinance.

Check with a lender or mortgage broker for more information.

Hope that helps.
0 votes Thank Flag Link Thu Mar 21, 2013
In the fact sheet on this house the park that it is in have a 5 year lease . If this is true are the high number of homes in that park have a problem.
Flag Sat Mar 23, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
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