Anyone done a "land/home package" (i.e. Modular, etc) - Homesteading Today
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  #1  
Old 12/19/08, 03:34 AM
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Anyone done a "land/home package" (i.e. Modular, etc)

I remember 4-5 years ago when we were shopping for a home we popped into one of those highway-side mobile home/ modular home dealers to check out the cost difference between buying an older, site-built home on land versus buying land and putting a modular on it.

Turned out at that time that even their smallest modular home was too expensive for us (mobile home we could afford, but prefered the look and specs of the modulars), BUT, we were very interested in their "land-home" packages; basically, YOU find the land you want, and THEY buy it, add the modular, and finance the whole package to you.

I was wondering if anyone knows of a modular company offering SMALL modular homes; in the price range of $45-65k, that when totalled up with the land, would come out to about $80k for the package..........

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Old 12/19/08, 08:35 AM
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Originally Posted by jill.costello View Post
I remember 4-5 years ago when we were shopping for a home we popped into one of those highway-side mobile home/ modular home dealers to check out the cost difference between buying an older, site-built home on land versus buying land and putting a modular on it.

Turned out at that time that even their smallest modular home was too expensive for us (mobile home we could afford, but prefered the look and specs of the modulars), BUT, we were very interested in their "land-home" packages; basically, YOU find the land you want, and THEY buy it, add the modular, and finance the whole package to you.

I was wondering if anyone knows of a modular company offering SMALL modular homes; in the price range of $45-65k, that when totalled up with the land, would come out to about $80k for the package..........
I wouldnt count on a whole lot of that type arrangement in todays financing market. The land home package was one more of the "creative financing" schemes used to sell unrealistic mortgages and mobile homes. Even if I could find a company that would do this I would not go that route. If anyone needs 100 percent financing, they are overextending themselves and the odds of success are very slim in those cases. There is a reason most banks wont loan more than 80 percent of the value of the property and want to see your income/expenses ratios. Most banks figure the maximum housing expense should not exceed 26 percent of income. They are not only protecting themselves from losses, they are also protecting the borrower from disaster. Another reason I wouldnt go this route is that mobiles and modulars tend to depreciate rather than appreciate even in good markets, which we are not having today. While modulars depreciate less than moblies they are still on the negative side of the equation. Mortgage brokers are altogether different from banks. The local independant banks are not in the kind of trouble the mortage companies are in, along with the mega banks who bought a lot of the bad paper created by the freddie mac and fannie may party.
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Old 12/19/08, 08:42 AM
 
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The price of "building sites" around here, 2 - 20 acres, has absolutly gone through the roof. Rural Iowa. I can't imagine it, but that's the reality.

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Old 12/19/08, 08:55 AM
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Originally Posted by Cheribelle View Post
The price of "building sites" around here, 2 - 20 acres, has absolutly gone through the roof. Rural Iowa. I can't imagine it, but that's the reality.
Its the law of supply and demand at work. There is a secret conspiracy going on twixt our schools and realtors. Every year the schools unleash a brand new crop of graduates who are wanting a place for a home. A few years back us greedy realtors saw this trend, put our heads together, and decided to stop making any more land. This move on our part limited the supply, while the schools keep increasing demand, and we get to make a bunch of money selling those building lots. Fortunately for us realtors, the schools havent figured out yet that we are using them for our own gain, but they are run by the governmetn so we feel pretty safe that they wont figure it out anytime soon.
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  #5  
Old 12/19/08, 08:57 AM
 
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If it sounds too good to be true it usually is and ends up costing more in the long run.

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  #6  
Old 12/19/08, 09:23 AM
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We have that around here: land/home packages. $80K would buy you a nice place.

Large tracts of land (10 - 20 acres+) sell for much less than smaller ones so some mobile home sellers have bought up acreage. They put in a shared well, electricity, cindered road & sell the land (1 - 2 acres) along with the modular.

It appears to work well. Most modulars are at around 12/1400 sq.ft.. They appear to have basic CC&R's (animals OK) so the areas are well kept.

Raw land sells here at about 10% interest. If you can get a seller to carry the note. (Do NOT get a Land Contract!) If you try to finance raw land through a lender, they want a bundle down. If you can buy land, then a modular (how about a Park model?) then refinance it together, you may come out better financially, although putting in a well and running electricity can be very pricey.

Actually, it's a nice, legal way to sell modulars. A young man down the road did this, buying the smallest home he could buy. He stated he'd never have been able to own anything if it hadn't have been for the land/home package.

Good luck. Maybe if you go to some dealers in the area you want to buy, they'll be able to help you.

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  #7  
Old 12/19/08, 10:24 AM
 
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We did look at modulars at one point. Some of them seemed to be decently built but that means about on par with low cost developer construction. By the time we got thwe land, modular, all the site work and utilities, it was much cheaper to buy an existing home. We ended up buying a 12 year old home that we're very happy with.

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  #8  
Old 12/19/08, 11:35 AM
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By accident, I happened to see the dealer's price for a double-wide manufactured home which was sold in our area last week, and it was $65,000. The homebuyer's price was around $118,000, set up. That didn't include the land. I think the one-acre lot was around $17,000. Anyway, I thought that was a pretty big mark-up for the mobile home.

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  #9  
Old 12/19/08, 12:18 PM
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We have looked at all different options. Our reasons for not doing a modular (aka new double wide) is because they go *down* in value, like buying a new car. No matter what you do to it, it will always be a "manufactured home".

We are currently looking and if it is a manufactured we immediately cross it off the list. Anything "stick" built we can remodel or fix up as we go. With all the foreclosed and short sale houses on the market right now, that seems the way to go. Most are being sold "as is" but for great prices.

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  #10  
Old 12/19/08, 02:41 PM
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we had lots of offers on our little property (16 acres) on the 9 years it sat and waited for us. here, ppl are either out of state big-money and want the whole county, or a little place like ours. there are very few of those! we paid lots more per acre than say buying it in a quarter sized parcel, but we also paid it off in 9 years, and its enough for us.

house in town are cheap--and many. i know i could go to town today yet, and buy a house ready to live in for under 20k, some under 10k. i know of a very nice mobile on a full acre just a mile from town, fairly private and kept well, with sheds, etc. for 35k and its been there a while, i'd bet a nice offer would sell it cheap.

the other post where someones' trying to figure the cost of moving to a homstead, this just all proves the point it ain't cheap! a person could easy homestead that little acreage, but we wanted a bigger place, further out--and we'll pay for it in sweat and cash.

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  #11  
Old 12/19/08, 04:12 PM
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We bought one and put it on a city lot about 6 years ago. We did see houses for around that price range but once we got into it other charges were discovered...like $20,000 to set the house up on foundation and what ever else is involved. If anyone is seriously thinking about buy one I highly recommend not buying a KIT (manufacturers name). Although the house is OK.. they did a lousy job of fixing things including the heating in the house.

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  #12  
Old 12/19/08, 08:42 PM
 
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Jill, I lived in Easton for 15 years. My parents just moved from Queenstown down here. Adult son lives on KI. Know the area well.
Anyway, when we decided to build near the Outer Banks of NC we looked into modulars. Frankly price wise they were coming out the same as stick built. The only reason to purchase was time wise but even still they had a six month wait list. To be honest a modular might have cost more. They didn't include things like driveways & grading (required by code) that our builder did.
I would certainly shop around builders. They aren't having a happy time right now.
Kind regards;
KAT

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Old 12/19/08, 11:03 PM
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We did not package finance, or finance at all.

But we did buy a humongous modular. With the foundation it is about $55 per sq ft. Stick built tract houses here were going for $130 per sq ft. I am sure that has dropped some since the bubble burst.

Do not get a modular unless you are sticking with it. As said previously, they do not hold their value. We got one because it was the right price and it was fast (lot model) and cause you can bury me here in 30 to 35 years. I will not be selling.

They do the package thing out here all the time.

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Old 12/20/08, 05:30 AM
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Thanks for all the replies, guys. That's about what I was thinking, but, boy, I only need 800 sq feet for just me and the dogs! I was thinking something like a 18x24 footprint with a 12:12 roof for some extra loft space for my bedroom.

Been looking hard at pre-built "cabins" and then the cost of finish-out (if I do the labor myself), but I just don't have the cash saved up to "self-finance". I have an excellent monthly income, but where would I live during construction?????

I guess if I could finance the land (20-30k), place the dry-in shell on a foundation (20-35k), I could "camp" in there with a woodstove as I add the interior finish bit by bit.....

Would a lender lend on land and dry-in shell?? (adding the cost of foundation, well, and septic)???????

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Old 12/20/08, 07:18 AM
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A modular home and a manufactured home are not the same thing. Manufactured homes are what they used to call mobile homes, or trailers. They have a steel frame and axles under them. Modulars are stick built, but in sections at a factory. They are then transported and assembled on the foundation. A decent modular (some are shoddy) is the equivalent, or sometimes better than a site-built home. They also cost about the same- all you save is time. There does still seem to be a stigma connected with modulars, though, since many equate them w/ manufactured homes. They're two different animals. There is a two story colonial near my mother's place in CT, and you would swear it had been there 100 years, even though it is a high-end modular.

There are a number of small cabin kits out there, and some will assemble the shell for you. I don't know much about the lending situation these days, other than that it has tightened up a lot, usually requiring a sizable down payment and pretty good credit. I would imagine some of the more 'creative' ways of developing a property are no longer available, but it doesn't hurt to ask. There is a pretty big risk on owner-built or finished homes, since many times the project never gets finished for one reason or another.

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Old 12/20/08, 07:40 AM
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fella down a bit and across the road did that. I'll find out where he got it.

'round here people carve land out of farms and sell it... $10k to $15k an acre for smaller parcels (3-5 ac), $3k an acre for real big ones (above 40 ac). There's a 5 acre parcel on our bottom corner that would sell around $20k.

If I find out the company, I'll let you know.

R

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  #17  
Old 12/20/08, 08:56 AM
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Originally Posted by jill.costello View Post
Thanks for all the replies, guys. That's about what I was thinking, but, boy, I only need 800 sq feet for just me and the dogs! I was thinking something like a 18x24 footprint with a 12:12 roof for some extra loft space for my bedroom.

Been looking hard at pre-built "cabins" and then the cost of finish-out (if I do the labor myself), but I just don't have the cash saved up to "self-finance". I have an excellent monthly income, but where would I live during construction?????

I guess if I could finance the land (20-30k), place the dry-in shell on a foundation (20-35k), I could "camp" in there with a woodstove as I add the interior finish bit by bit.....

Would a lender lend on land and dry-in shell?? (adding the cost of foundation, well, and septic)???????
Im currently building a 16X24 with a 12:12 roof and 8X24 pourch aimed at the prebuilt shed/cabin market This is my experiment to see if its worth doing and its looking more and more like it will be a one off.
Let me tell you its a CHALLANGE! I think the roof pitch is going to suffer and hanging the fold out pourch is a headache!

Around here its common to be able to finance both land and porta-sheds that would leave you needing to be able to handle the utilities setup on your own.
The nice thing about the prebuilt shed thing is you dont need a true foundation just some piers.
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Old 12/20/08, 11:03 AM
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Land Home Package

Vanderbilt Mortgage and Finance has a web site for reposessed homes, land home packages which lists 2700 foreclosed properties its on the web at vanderbilt mortgage remarketing center hope you can find it

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  #19  
Old 12/23/08, 11:54 AM
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There's a big difference in a lender's eyes between a true modular and a mobile home. A true modular is built to a much higher code than a mobile, and as such is treated as a regular site built home. Actually modulars often exceed the quality of a site built home.

That said, under the current market conditions, a construction to permanent loan, which is what you are looking for, is almost non-existent. However a great loan program for a rural area home is a USDA Rural Development loan. They still do 100% financing through the USDA(old Farmer's Home Loan). Contact you r local USDA office and ask them for info.

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Old 12/23/08, 12:32 PM
 
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Jill,
If you were considering S/W Missouri, Wife and I have an older house needs work on 20acres has a mobile home that is livable. I have health problem so it is setting. If your interested PM me I can send the listing # .

Glenn

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