Modular homes have gone through many transitions in the last few years, and most have been for the good. Originally known as mobile homes these modular homes have become even more of a mainstay is American than ever before. Should you buy one? Let’s look deeper into that question and come up with the answers so you can make an informed decision.
The first thing we need to do is define what modular homes are. They are factory built homes that are usually built in sections so they can match the state, local and regional building codes. Areas of the country have different codes on the books so usually they have to be built to that specification if they are going there. These sections are transported to where the site is being built and then they are put together onto a foundation where they will permanently stay. This makes construction much quicker than building from the ground up.
There are many advantages to a modular home that you will want to consider. First these homes are every durable. They sometimes have to travel great distances to be built so the manufacturers make sure they are well constructed. Secondly, many times these companies will actually let you choose what and how you want the home to look. This is a big advantage over buying an existing home where you get what you see. If health is an issue with your family than modular homes for the most part are always mold and mildew free. Since these are climate controlled that chance for mold and mildew to grow is virtually nonexistent. This is really important to people who have health issues and can’t deal with mold or mildew at all.
The biggest factor why modular homes have seen, a rapid growth is for two main reasons price and time. Most modular homes are cheaper to build and the savings means a lower payment for the consumer. This means less of a down payment and out of pocket expense for them. Construction time is usually a lot less too as these for the most part are already in sections. No waiting on a certain skilled craftsman to do his part. It’s already done all you need is to have it assembled with limited outside contractors need. This cuts down on the time for you to be in your new home.
Modular homes are designed for the consumer and saving them money. Energy efficient homes are what more people throughout the world are requesting and modular homes are one way to give it to them. Many countries are turning to this type of home and building communities around them as they prove to be cost effect alternatives to other options they have tried. Nothing can replace home ownership and this type of home gives them the best chance to do that.
The future of modular homes looks very bright as the housing crunch takes a toll on everyone everywhere. Getting the best deal possible is where consumers are heading and that looks like it will be toward the modular home. Top quality construction with a very favorable price let’s these homes be one of the hottest new trends in the housing industry to come in a very long time. I don’t look for this to end anytime soon as look as they continue to produce a quality product at an affordable price.
Article Source: http://EzineArticles.com/?expert=Jeffrey_Meier
December 27th, 2007
Have you been interested in looking at modular homes but want to learn more first before diving headfirst into the investment? Well, you’ve reached the right place. In this article, you will have a chance to learn what a modular home is, as well as the pros and cons of buying one and where you can go to find more information if needed.
What are Modular Homes?
A modular home is a home that is built in sections at a factory or plant and then is later delivered to a construction site where it is pieced together on location. This process of construction is quite the opposite of general on-site construction, which starts and finishes at the location. Modular homes are prepared in an assembly line fashion and are then transported when completed. This process is said to save customers time and money - a major selling point.
These unique homes have the look and feel of a traditionally-built house and meet all building and local zoning codes. They can be built to be hurricane-resistant or hold a sturdier frame for an earthquake prone area. No matter what specifications the owner and local zoning area have, most modular home manufacturers have learned to make adjustments that will meet the needs of those specifications.
Pros and Cons
One of the pros of buying modular homes is the process of prefabrication and indoor construction. The pre-fabrication process at an indoor location is beneficial for two reasons. One, the mess of fabrication that would have been accumulated onsite is now handled before the home ever reaches your property, which results in less time spent cleaning up after construction. And two, by working at an indoor facility to get it partially constructed, your home is not susceptible to all of the outdoor elements including rain and animals that can adversely affect construction time and cause weather wear and tear to your home before you move in.
Another pro is the strength of modular homes. Many manufacturers claim that these homes are built to be stronger than traditionally-constructed homes - initially, at least. This is because many of the homes are built with screws instead of nails and add glue to the joints to enable an easier transport to the site. While they are said to be initially stronger, it has not yet been determined that they are stronger over a long period of time.
The major reason, however, that people say they love these homes is because of their lower price tag. Builders claim that because they are large manufacturers they can bargain for discounts on materials with the suppliers, which can cut the cost of the home considerably.
And now for the cons:
The first con of the modular home is that they are often compared to a cardboard box. In other words, you are said to be living in a boring carbon copy of tons of other homes built in the same facility if you buy one of these homes. However, many manufacturers have stepped up their game and are now offering custom options that homes look more original.
The second con is the financing issues that the home can present. Because these homes are still new on the home lending scene, many lenders are apprehensive about financing them; and if they do decide to finance one it will be for much less money than the traditional, on-site home. This can cause a problem for both the manufacturer and buyer as they don’t have as many resources available to create a nice home.
And the third con is the challenge of site access. One issue that on-site constructors do not have to contend with is the idea of driving a large home through narrow streets; but a modular home builder does. It may be that the customer wants to place their home in a remote area, and when the builder drives to the proper they realize that a low overpass, gated community or narrow road may cause a problem when trying to deliver the home.
Should I Buy a Modular Home?
Of course, I cannot determine your specific situation to say “yay or nay” to you buying a modular home. It is up to you to determine the obvious pros and cons and then look at your personal and family situation to see what works best for you. But if you are interested in more information on the ins and outs of buying modular homes, then you might want to visit the following websites for more information.
Homebuying.about.com
This website accumulates several different websites that tell you the advantages and disadvantages of buying modular homes as well as where you can find manufacturers and builders in your area to get started. Not a bad resource.
Modularhomesguide.com
Modularhomesguide.com is a website that tries to give you access to “the best modular homes, dealers, home builders, communities and new home builder web sites” in the country. They claim to be the largest database on the Internet for these homes, and with their high ranking in the search engines, they just might be.
Through their site you can find information about homes in your area by selecting your state, price range, manufacturer, floor plans or builder, and home type. Once you’ve conducted the search, you will be taken to a list of homes that fall into the criteria you pre-selected. In addition to searching for homes on the site, you can find informative articles that can help you make your decision.
Modular homes have become a nice alternative to people who are interested in paying less for a nice home. They’ve found that the benefits can be plentiful when they consider the cost reduction, lack of extended construction time, reduction in mess at the site, and sturdier home to live in. However, these modular homes do run the risk of having a “cooker cutter” beige box look, so it is important that you do your research before committing to buying one. The more you learn about the pros and cons of these homes, the more likely you are to make an informed decision that you won’t later regret.
Article Source: http://EzineArticles.com/?expert=Jeffrey_Meier
December 27th, 2007
You have seen the advertisements. You might even know some people who own one. You think it might be the way to go in buying your next home. But first you should do some research and some thinking. You should understand that there are both pros and cons when it comes to buying a modular home.
You should also realize the difference between a modular and a manufactured home. A modular home is a home that is built basically by a kit. This kit is made in a factory but is put together by trained craftspeople. The buyer can pick out the kit he/she wishes to have and can make some minor changes to it. The kit arrives in pieces and when put together a home is built. A manufactured home is another name for a mobile home or a trailer. These are also made in a factory.
Now that we all know what a modular home is let’s look at some of the pros for buying one.
1. They can be set up almost anywhere, as long as there is sufficient space.
2. They are generally pretty affordable.
3. You have some choices of the layout you want. You have choices on how many bedrooms, how many bathrooms, etc. You can also buy kits in which you can do some of the inside work yourself, adding the drywall, finishing the floors, adding the plumbing, etc. Make sure you understand exactly what your kit contains and what work you will have to finish yourself when purchasing.
4. The home will be livable a lot quicker than a home would be if you built it yourself. Actually, you might be amazed at how fast these modular homes can be constructed.
5. You don’t have to worry about thieves stealing your lumber as you are building it. (A problem that is growing across the nation).
6. These homes are factory built and do have to follow codes and are inspected by third parties.
7. Most modular homes will help you safe energy.
8. You can easily add more rooms onto it in the future, if the needs or money will allow.
9. If made correctly, can stay beautiful for years.
10. Modular homes are built with real 2 X 4’s compared to 2 X 3’s that are used in making manufactured homes.
Now for some cons that some people believe exist.
1. Although these homes are built by craftsmen, many people believe that these homes are also put together too quickly and therefore are lacking in craftsmanship.
2. They lose their market value quicker than a normal home does.
3. Some of these modular homes have had some problems with insulation and water lines.
4. Can be harder to finance than a regular home.
5. They do not build equity like regular homes do.
6. May not be as sturdy as a regular home (especially during bad weather, tornados).
Could a modular home be the perfect choice for you and your family? Weigh the pro and con list of reasons for buying a modular home, go and see some for yourself, talk to some salespeople and then decide for yourself. Only then will you know for sure.
Article Source: http://EzineArticles.com/?expert=Jeffrey_Meier
December 27th, 2007
Homeowner loans can vary greatly when it comes to the rate of interest that you are asked to pay and due to this it is essential that you get several quotes for loans. If you choose to go looking online on your own you could spend hours or even days wading through one quote after another jotting down the cost and trying to remember which was the cheapest. A far better way is to go to a specialist website and get several quotes all in one place and as a specialist will know where to look on your behalf you can be sure of getting the cheapest loan.
It is imperative that when you compare the interest rates you also compare the terms and conditions of the loan. These can be found in the key facts and should be made available along with the quotes so you can make an informed decision and comparison. You have to compare the rate of interest, how much interest will be added, how much in total the loan will cost and above all if any additional costs could be added on.
Homeowner loans can be taken out for virtually any reason but as your home will be used as collateral against the loan it is essential that the reason for taking the loan outweighs the risk. Just as important is making sure that you only borrow what you need and do not be tempted to add a little more onto the loan, not only will it boost the amount of interest you will have to pay, but also how much the interest rate will be.
When taking out a homeowner loan before applying for the loan you should work out how much equity you have in your home. The equity is money that is left over after you have taken the amount that you have left to pay on your mortgage from the value of your home. This figure will be the amount that the lender will be willing to let you borrow and knowing this before applying for the loan will go a long way to being approved. Of course lenders do take factors into account such as how much money you have coming in and going out, which will determine your ability to repay the loan and also the current state of your credit rating.
If you are considering comparing homeowner loans with the intent of consolidating existing loans and credit cards then you have to make sure that you are not going to be worse off in the long run. For example if you have an existing loan that would be repaid in three years and a credit card debt then taking out a consolidation loan for five or six years even with a lower rate of interest would mean you would end up paying more. With this in mind you will have to compromise between low repayments and the length of the loan, bearing in mind that the longer you take out the loan, more interest is added and the longer your home is at risk.
Article Source: http://EzineArticles.com/?expert=Louis_Rix
December 27th, 2007
Over the past years working with foreclosure victims, it is always amazing to see the complete incompetence of mortgage lenders. When working with these homeowners, foreclosure case workers or loss mitigation representatives go to nearly any lengths to avoid helping their clients. It seems they do anything possible in order to delay a resolution, instead allowing the home to get dangerously close to the sheriff sale before turning down the workout program entirely.
In cases where the homeowners are facing the loss of their homes due to negligence or fraud on the part of the lender, the incompetence is especially frustrating. Our observations over years have alerted us to a few of the various ways that banks push paying customers into it in order to steal the home and extract the largest profit possible at the expense of the homeowners. This type of scam is mostly perpetrated by servicing companies and operates in several ways, all of which we have witnessed numerous times.
Homeowners in these and similar situations may feel as if they are the only ones caught up in some kind of Kafkaesque debacle. The lenders play the part very well through their own genuine incompetence at the customer service level. Remaining on hold for three hours a day just to confirm that a fax has been received (when it had not been received any of the previous three times it was sent) is a simple tactic resulting from understaffed loss mitigation departments and increasing foreclosures. But more and more experience and research shows us that these are not isolated events, but carefully planned manipulations of mortgages, resulting in forced foreclosures.
Possibly the most common scam that we have witnessed is when the lender places a forced insurance policy on a property. They claim they have not received proof of insurance and then force the owners to pay extra every month for the policy. Often, they place the insurance without informing the homeowners, who make their regular monthly payment, which is first applied to the policy and then to interest and principal. This makes them late on the bill even though they are paying on time every month. Faxes to the lender of proof of insurance will not convince them, if they confirm receiving the documents at all. Homeowners may only learn of the insurance policy when they are being sued for foreclosure, and assume that a horrible mistake had been made.
Another way that mortgage servicing companies push properties into this is by paying the property taxes late and charging the late fees to the homeowners’ account. The next payment the homeowners make will be applied to the taxes and late fees, while the principal and interest will be partially late. Again, the foreclosure victims may not realize the scam until they are being sued and their home is scheduled to be sold at a county auction. Even then, they may have little idea of how to defend themselves in court against a company with thousands of successful foreclosures behind it who has hired local attorneys that specialize in such cases. The loss of the home may be all but guaranteed at this point.
These are the two most common ways, in our experience, that servicing companies have been known to force homeowners into foreclosure. The deviousness of the scam, combined with the bureaucratic inefficiency of many of these companies, often create the impression that errors have been made that can be corrected, as long as the homeowners can talk to someone, explain what happened, and straighten out the mess. Unfortunately, customer service centers may be specifically designed to delay the homeowners as long as possible, leading them to believe they are working out a solution, while the attorneys proceed ever more quickly to the foreclosure auction.
Even more unfortunate is the fact that homeowners have little alternative when they become a victim of this scam. Once they are behind in payments or in foreclosure, the servicing company will make absolutely sure that the balance due on the loan strips the property of its equity. This also dramatically decreases the chance of qualifying for a loan or other solution, and increases the amount necessary to begin a repayment plan with the company. A house with little equity can not even be sold quickly enough to ensure that there will be any equity by the closing. The servicing fraud scam is one of the most disturbing in the industry, and one every homeowner should be aware of, because the power of the perpetrators so outweigh the victims in terms of money, legal expertise, and previous successful cases.
Article Source: http://EzineArticles.com/?expert=Nick_Adama
December 27th, 2007
Many times modern homeowners get taken in by the advantages of a debt consolidation mortgage. However little do they realize that just as every coin has two sides to it, so does a mortgage housing loan also have its own advantages and drawbacks.
It’s therefore essential to know the various kinds of debt mortgage consolidation loans available in the market before jumping to any one of them.
The second mortgage on the home equity loan
Many homeowners opt for a second mortgage on their original home equity loan. By doing this they get a fixed tenure for making the payment as well as a pre-defined interest rate on the original housing loan. The duration could be anywhere from 10 to even 30 years!
The good thing is that in such a kind of debt consolidation mortgage loan you don’t need to pay any penalty for prepayment and the interest is tax deductible. The flipside is that if you happen to default even once you might just loose out on your home altogether!
Line of credit on a home equity
Basically when house owners take to using their house as a form of collateral, they are setting up a revolving credit line. That basically means that in such a debt consolidation mortgage loan the credit amount maybe reused over and over again. However the line of credit needs to be kept open only for the pre-determined stipulated period of time.
Otherwise one might need to pay even a penalty. Interest rates are usually variable which can be good during optimal market scenarios. However paying only interest can accumulate more liabilities and debt relief may then become more difficult.
Home refinancing might be a good option
If you happen to find a debt consolidation mortgage loan which is offering you a much lower interest rate than what you’re paying at present, then it might be helpful. The principle of such a scheme is very simple. It basically involves using the other mortgage housing loan to pay off the current loan outstanding amount.
If the interest rate on the other loan is significantly lesser than the one you’re paying, it can save you a lot of money in the process. The major drawback of home refinancing is the amount of closure fees needed to be paid. These fees can work out to a substantial amount and even a lower interest rate may not help in saving much money for you.
Small outstanding amounts
Sometimes your debts may not be that large to be suitable for a debt consolidation mortgage loan. Most of the time the interest rate and fees offered by mortgage lenders are quite high. So if you have a small amount of debt you might actually be spending more money on monthly fees and interest alone!
Longer duration
Most of the time, the monthly payment towards a debt consolidation mortgage loan works out lesser if the payment duration is extended. If you have financial obligations of your own it might make more sense to spread out the duration of payments over longer payment tenure. This way you will end up paying lesser each month on your debt consolidation mortgage loan.
Article Source: http://EzineArticles.com/?expert=Roy_Phay
December 27th, 2007
Before investing in rental property, it is always wise to do a little homework and pre-planning. Such actions on your part can substantially improve the likelihood that your resulting rental property investment will be successful. The following are some key elements that every careful investor should investigate and consider before purchasing rental property and becoming a landlord.
- Location, Location, Location - This is a familiar slogan in the real estate world. The location of a rental property plays a large role in the supply, or demographics, of tenants who are available to rent the property. It only makes sense to purchase properties located in areas where you’d be comfortable in dealing with the general population living there.Location also plays a significant role in the market value of a property, and its future appreciation potential. Properties that are located in poor or decaying areas will not have the long-term market value appreciation potential as properties that are located in better neighborhoods.
- Condition of Property - A low-priced bargain “fixer upper” investment property, while looking attractive on the surface, can turn into an expensive money pit to make the necessary repairs and upgrades. One reason is that neglected properties in poor condition commonly have “hidden defects” that must first be corrected before the planned upgrades can be made. For these types of properties, not only must the additional renovation costs be absorbed, but also the “lost rent” opportunity cost must be factored in. In this respect, purchasing a more expensive and reliable “turn key” rental property that is in good condition may actually turn out to be a better overall investment.
- Price and Financing - Knowing the actual fair market price of an investment property is a necessity in order to prevent paying too much for the property. The fair market price for an investment property can be found from a comparable market analysis, or CMA. Another method for determining the fair market value of an investment property is through a method known as the “capitalization rate”, or Cap Rate for short. The Cap Rate of a rental property is found by taking its net operating income, or NOI, and dividing it by the property’s market value. This ratio, expressed as a percentage, should be equal to (or greater) than the average cap rates of similar investment properties in the area.For the rental property purchase, the financing method and costs should be investigated and determined prior to making an offer on the property. In this manner, it is also wise to get pre-approved for financing at a lending institution. Getting pre-approved for a mortgage definitely provides a buyer with more credibility, clout and leverage in the marketplace with the seller.
- Property Management - To manage or not to manage, that is the question you must ask yourself. This is because once you purchase a rental property, you’ll have the choice of either managing the property yourself as a diy landlord, or you can outsource the day-to-day property management tasks to a real estate property management firm. Factors that can influence your decision are the size of the property, the amount of personal time that you can dedicate to managing the property, your property management knowledge and skills, and your temperament for the job. If you find that managing the property yourself “is not your cup of tea”, then hiring a property management firm is your alternative. Property management firms typically charge a percentage of the rents collected as their management fee. But beware - not all property management firms are created equal. There are plenty of unethical firms in the property management business. They’ll be glad to place a poorly screened tenant into your vacant apartment, just to collect a quick “one month’s rent” commission for filling the vacancy. Then shortly thereafter, all sorts of problems with the tenant begin, disrupting your rental operation until the tenant is evicted.So, if you choose to hire an outside management firm, exercise caution and investigate their credentials and client track record thoroughly before hiring them. The time you spend checking their history could save you plenty of grief and money in the future.
- Rental Income of the Property - In an attempt to inflate a property’s sales price, an unethical seller can falsely overstate the rental income that is actually produced by the property. To prevent this and verify actual rent levels, it is best to mail “estoppel letters” to all existing tenants occupying the property. The tenants will then have to respond by providing written confirmation of their actual rent levels charged as well as other facts about their rental or lease agreements. These could include security deposit amounts that will have to be transferred to the buyer by the seller upon sale of the property.
Article Source: http://EzineArticles.com/?expert=John_Turchetta
December 27th, 2007
Compared to saving up your money and earning meager interests through bank deposits, investing your money is always the more attractive option in meeting long term financial goals. The act of investing is in putting aside capital in an enterprise with the expectation of profit.
Investments can broadly be categorized into 3 main areas, financial investments (stocks, bonds, treasury bills and debentures), tangible investments (gold, gems, art objects and antiques) and real estate investments (property redevelopment, buying land and residential units).
Here are four compelling reasons why real estate investments remain a very attractive option in achieving financial goals and retirement:
(1) Financial Leverage
- Properties can be acquired with a small investment, sometimes just a fraction of the actual property value. As such, investors can include real estate investment in their investment portfolio without too much commitment of capital.
(2) Regular Income Source
- If the investment does well and the monthly rental income more than pays off the mortgage repayment and operating expenses, the property becomes a positive cash flow asset.
(3) Increased In Value
- Few investments can benefit as much as real estate when expert management of the property is provided. In getting a poorly maintained property at a bargain, smart investors will get a quick return on investment by simply sprucing up the place.
(4) Inflation Hedge
- Studies have shown that general property value increase at a faster pace than inflation. Therefore, real estate investment gives investors certain protection against loss of purchasing power in the face of continual rising prices of goods and services.
Many have invested in real estate and earned attractive returns for their investments. You can be one of them.
Article Source: http://EzineArticles.com/?expert=Keith_Lau
December 27th, 2007