Home Buying in 94086>Question Details

JES, Home Buyer in Sunnyvale, CA

Want to purchase custom built manufactured home. I'm looking to go in on this purchase with my mom.

Asked by JES, Sunnyvale, CA Fri Feb 1, 2013

Credit not good for either if us/no down pymt.. Currently pay $1100 each for our own apartments. I make $80,000 per yr., she gets $3200 a month. Sure we can afford the house payment and sapce rent. Any options?

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4
Jes,
Space rent is high in the Bay Area. You will have to pay $700-$1400 a month rent at the local parks. You will certainly be able to afford the payments on a manufactured home if it is in the $200,000-$300,000 range, but without a small down payment and poor credit it will be up to the individual park if you can purchase a new home there. You should contact the parks individually and see what their financing policies are.

Marcy Moyer
Keller Williams Realty Palo Alto
marcy@marcymoyer.com
DRE 01191194
650-619-9285
Web Reference: http://www.marcymoyer.com
1 vote Thank Flag Link Fri Feb 1, 2013
Unfortunately, there are not any 0% down payment loans available on manufactured homes. Financing starts at 5% down, but you cannot finance in any fees or closing costs so a 10% down loan is recommended. If you can get a loan, you will have a great total payment for the quality of home you will be living in.

Feel free to visit http://www.MHBLoans.com for more information.
0 votes Thank Flag Link Mon Feb 25, 2013
With no downpayment and bad credit it will be very hard for you to buy a home. I haven't seen any offered lately but a "rent to own" might work out for you. I hope you can find something.

Sunnyvale real estate information at http://julianalee.com/sunnyvale.htm

Juliana Lee
Cell 650-857-1000
Top 3 agent nationwide at Keller Williams Realty

Over 20 years experience
Over 1,000 home sales completed in Santa Clara and San Mateo Counties
.
Web Reference: http://julianalee.com
0 votes Thank Flag Link Fri Feb 1, 2013
$8ok is $6,666 gross inc/mo that plus $3,200 is $9,867. Assuming no other credit card, car or other monthly debt payments the banks will tupically allow at least 35% of that to go toward housing, or $3,453 for PITI if we assume 5% down and 3.75% interest that payment finances a $570,000 purchase.

However, if you are going to build your own home, you will need to buy a building lot and then over a period of at least 1yr possibly 2yrs pay for permits, foundation, utilities, home, etc... So you will need a land loan AND then a construction loan. Hurdle #1, we'd need to talk with a lender, but land loans typically require at least 35 to 40% down. Some $'s have to go toward the lot/land and some toward the home/construction/permits and remember there will be interest payments along the way, even though there for many month won't be a home you can live in, so you will be paying rent and mortgage while building.

Let's make a few educated guesses. You will not find a building parcel that you can build on without running into permit, water, septic, utilities or some other obstacle for less than $350,000 in the Bay Area. In fact, that price will be hard to find. That leaves you with $220,000 to do EVERY thing else.

A safe assumption is $200/sqft to build, that mean the home will be less than 1200sqft ASSUMING you don't run into major permitting or building issues. Yes, I know the manufactured home might be $75k to $150k+ but even at $75k that's just the materials, you still need a foundation, carpentry, permits, possibly a well and septic, a driveway, a garage, landscaping, connection to utilities, etc...

Honestly, you will be hard pressed to build for $575k, and if you can't afford cost over runs... don't start the project. By the way, my math is based upon 3.75% but the loans on the land and during the construction period are at a significantly higher % rate, because the risk is so high for the lender if you start the project and don't finish.

So, now perhaps you have a sense for why my Blog is the GetRealReator http://www.GetRealRealtor.com. But better to be well informed up front an make an informed decision.

If you'd like to talk more call or email me!

Stu Carson
408-209-0849
http://www.JustMyProperties.com
0 votes Thank Flag Link Fri Feb 1, 2013
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