Home Selling in Sacramento>Question Details

J. R., Both Buyer and Seller in Sacramento, CA

We own a 1962 mobile home in a family park South/East of Old Town Florin in Sacramento. The property is

Asked by J. R., Sacramento, CA Thu Jun 19, 2008

large with a nice landscape and we only owe a few thousand, on the mobile and own the property outright, with the monthly HOA dues at $55.00 a month.

We figure we could sell for $100, 000, in this market but, we have to stay close to Sac and need a property that has either two homes or at least 1/4ac, for a work shop.

What would you recommend?

1) Sell and try to find a place that we can afford on a very small salary and no established income (work from home)?

2) Rent out our home until the market goes back up then sell?

I have found some properties that look promising, but we have small children and need to find a really nice safe area with excellent public schools. Our credit is not great, but not bad, no foreclosure or bankruptcy, just a couple of late payments. I am just not sure what would be the best route to take with our situation and would really appreciate some sound advice.

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I can offer advice from a mortgage lending perspective that may help in your decision. Only a Realtor can tell you if you should hold or sell.

First, if you decide to sell, potential buyers will find it a challenge to obtain financing for a manufactured home that is older than June 1, 1976. This is the oldest manufacturing date that FHA, Fannie Mae, and Freddie Mac will allow. So a 1962 home won't qualify for the majority of loan programs available.

Second, obatining financing on a new home for you will also be a challenge. Fannie Mae, Freddie Mac, and FHA have all added restrictions to their loan products and have eliminated many of the "short-cut" loans. In fact, beginning July 14, FHA will consider credit scores in determining the amount of FHA insurance paid by borrowers. FHA has never considered credit scores (but most banks add their own restrictions on top of FHA). Borrowers with weak credit will pay more in closing costs and monthly payment. Additionally, Federal and state regulators have cracked down on lenders who do not carefully consider a borrower's ability to repay a loan... even if your credit is excellent, in most cases a two year history of qualifying income from W-2s, retirement, or tax returns will be required. You may not be able to prove enough income to qualify for the loan you need to purchase a new home.

It would be best to speak with a mortgage sales rep at your bank to help you determine how much of your income can be used for qualifying and how much house you can afford.

But definitely speak with a Realtor about buying, selling, or renting out.
2 votes Thank Flag Link Thu Jun 19, 2008
Excellent answer by Deep River. Trying to get a loan to help fund a new home will be difficult without income but not totally impossible if you have assets and a somewhat reasonable FICO score. I just helped a retired couple buy a home and obtain a small loan.

The question I have for you is why do you want to move? Are the schools a problem for you? Also, which areas are you considering? Before jumping into this, you might want to go online or ask me or any of the other agents on Trulia to send you listings in those areas. That will help to establish the price points of homes you might consider. Then call a mortgage lender and find out whether you will qualify to buy any of those homes. The next step, providing you have selected an area you would like and you can qualify for a loan, would be to ask a few agents to prepare a comparative market analysis for you to determine value of your mobile home and land. It is possible that any one of these three steps could throw a wrench into your plans.

I don't sell mobile homes, but I know agents who do. However, I would not be surprised if your land is worth more than your mobile home.

I'd take this one step at a time. Also, realize that if you wait for the market to turn around, that means prices will be going up. So, although you would most likely receive more for the land and mobile home, you will almost certainly pay more for a new home. You might be better off buying when prices are lower, even though it may mean selling for less.

Personally, if you have an opportunity to increase your income, I'd wait until you are earning more and are satisfied that your income will continue before pursuing a more expensive home. The last thing you want to do is stretch yourself too thin.
1 vote Thank Flag Link Thu Jun 19, 2008
Well, now is your chance to buy. It may be hard to sell your mobile home though at this time, due to the fact of financing. You said that you own the property outright, it is easier for a buyer to buy a mobile home if they also own the land. There are some amazing deals in Sacramento 95864 and also in Carmichael and in Elk Grove. All three of these areas have great schools. Certain parts of 95864 fall under Sierra Oaks which is a K-8th Grade school and has high testing scores and was just awarded the California Distinguished school award. I would recommend you speak to a loan agent, I can recommen a good one, and see what you qualify for and then make your decision. Once you know that you can buy a home with your income, then start searching and list your home for sale too. If you can not sell yours, then rent it and buy what you qualify for. It is sometimes trouble to have a tenant and might suit you best to sell you home since you have young children.
Web Reference: http://realtyaid.net
0 votes Thank Flag Link Tue Jul 1, 2008
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