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Young Harris : Real Estate Advice

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  • Home Buying2
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Activity 2
Thu May 24, 2012
Ron Thomas answered:
I would suggest that there is some reasearch you should do yourself:

If this sounds like a good possible home for you, you should visit the complex and talk to some of the residents;
you probably can get a copy of the CCR's (which could be very revealing)
you can ask about the HOA and how they are to live with,
HOA dues, pet and parking restrictions, and more.

The Taxes may be based on the selling price and may change once you buy it.

Good luck and may God bless
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Fri Sep 16, 2011
William Polack answered:
Conventional lending won't do mobile home loans. Only FHA will. That said, the minimum down payment is 3.5%. I'd recommend doing that to buy it first. Afterwards, you can pay a lump sum towards the principle and the bank will recalculate the balance to lower the rate. With $1750, it will create a stronger profile for you that you have so much money in assets. I have a lender that I can refer you to that will go as low as $40,000 (well, actually $30,000).
The reason they won't go too low is because the lender is capped on how much money you can pay towards closing costs (as a percentage). If you buy a house with a $30,000 mortgage, the bank allows you to pay a maximum of 5.5% of the loan amount in fees. The Attorney fee average in GA is about $500 plus another $100 for title insurance. Aside from that is 1% from HUD and GA state tax is 3% of the sales price ($150). Start adding these up and the loan officer ends up having to pay out of pocket to close your loan (about $200). It's not so much that they don't want to do your loan, it's that our wonderful federal government won't let them. Add to the fact that congress passed a bill in April 2011 that limits loan officer commission to 1% of the loan amount ($250 in your case). Because they are W2 employees, they pay taxes on that money and left with virtually no money.
The next issue is putting so much money down. Have you not heard of Rule of 72? If you allow me, I will show you where you can save your money without losing any principle, it will grow tax free and you can borrow the money tax free at any time. Best yet, there is no penalty for early withdraw and it earns about 7-8% per year. Divide 72 by 8, you get 9. Every 9 years, your money will double. Every 9 years, the value of your mobile home will decrease. Why would you put your money into a decreasing event when you can put it somewhere safe and watch it grow?
So, my suggestion is to put less down, save the money in a better product and enjoy your home knowing that if you lose your job, you have savings set aside to pay the loan and the bills.
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