I am thinking on buying a mobile home but not sure if its good buy?

Asked by elizabtcarlos, Austin, TX Sun Mar 2, 2014

I need help deciding to buy a mobile home in Austin, tx through owner finance. The price is 38000
interest 19%
15 years
and 4k down, but 15 years seems alot and the interest seem overated , any advice please , is 19% legal?. This is on a mobile home park which 400 is lot rent out of $1050 monthly

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Connie Bearfield’s answer
Connie Bearf…, Agent, Austin, TX
Mon Mar 3, 2014
You’re asking because inside this is making you uncomfortable. Owner financing does have inherent risks as described by the other realtors. The 19% rate is almost 4 times greater than the current market rate. Plus, mobile homes generally depreciate (lose value), while homes generally appreciate (gain value). If your credit score is weak, or you don't know, I would contact a lender have them see if you're eligible to buy, and if not, most lenders can tell you what you need to do to bring it up. Around the same monthly price, you could buy a house and be much further ahead in the long run. Good Luck!
0 votes
Don Groff, Agent, Austin, TX
Wed Mar 5, 2014
It may make sense to speak with a lender first to see where you stand. You also want to work on your credit to make it as good as possible and that first involves knowing what your credit is. From there you can see what options you may have. 19% is most likely excessive so I would look to see what options you have first and try to avoid owner financing if at all possible. If you do go owner financing make sure you use a real estate attorney and close in a title company to protect your interests.

Hope this helps.

Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
0 votes
Jordan Gouger, Agent, Austin, TX
Mon Mar 3, 2014

At those terms, that doesn't sound like a good deal at all. You have to be very leery of owner financed homes because there are many scenarios where you could lose everything.

With any owner financed scenario, one needs to verify that the seller actually owns the home free-and-clear without a mortgage. If they don't own it free-and-clear, they will need to clear enough from the down payment to do so. The reason why this is important is because if a homeowner has a lien on their home, there is nothing stopping them from pocketing your payments and refusing to pay the mortgage. I have heard of countless people that have lost everything because they fell for this. It is imperative to involve a real estate attorney when drawing up the purchase contract on owner-financing and thoroughly check the title for any liens. This is necessary in order to protect your interests rather than the seller's.

Honestly, at that monthly payment, you are far better off buying a new construction home than you would be buying a mobile home. I know of several communities where it is possible to find a home with a payment in that price range. Additionally, if you are a first-time home buyer in Texas, there are several programs available that you may qualify for. These programs could save you money over the life of the loan. You could also look into buying a lot and manufactured home directly from the dealer.

If you are interested in learning more, please contact me and I will be happy to help you. If this answer was helpful, please vote for it or nominate it for the best answer.

Jordan Gouger
Keller Williams
0 votes
Terry Bell, Agent, Santa Rosa, CA
Sun Mar 2, 2014
Out here in California, there is a limit on the amount an owner can charge for interest. I suggest that you do some research to find out what the cap is in TX. The fact that they want to charge you so much should caution you right there! There are agents that can help with owner financing deals. There are lots of reasons to go through an agent, and this is one of them. They are there to help you understand your rights and what is written in the contract. I suggest that you contact an agent in your area to help you!
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