Tribune Media Services

Q: Due to several recent financial setbacks, I may have to purchase a manufactured home rather than a regular single-family house. Where can I get the latest information on manufactured homes?

A: In recent months, I’ve received several letters a week from readers asking about manufactured housing, which leads me to believe it’s becoming a more popular, affordable choice for many Americans.

In fact, the Manufactured Housing Institute, confirms that manufactured housing is one of the fastest-growing segments of the home-building industry.

I’ve been told that the way manufactured homes are being built and sold has completely changed from the mobile homes and trailers of two decades ago, and quality and design enhancements account for a large part of the increase.

For more information, check out a new book by Kevin Burnside, “Buying a Manufactured Home” (Van der Plas Publications, 1999). It’s available in bookstores, call toll free 1-877-353-1207 or visit the Van de Plas Web site: www.vanderplas.net. Check the Web site of the Manufactured Housing Institute (www.mfghome.org) for additional information.

Q: I closed on my home in December 1999. Both the buyer and seller real estate agents promised me $500 (each) at closing to facilitate the sale. However, at closing, there was no such “envelope” for me.

After a couple of weeks, I contacted my agent, who brushed me off. The buyer’s agent paid up after one phone call. I called the office manager and she said she’d do something about it. That was two months ago. What should I do now?

A: Real estate agents will often toss in a little cash to close a deal. My understanding, however, is that they usually pay up. Send a letter to the managing broker of the office, reminding her of the deal and the selling agent’s promise to help.

You might add that if you don’t receive a check within a week, you’ll call your attorney. Speaking of your attorney, was he or she aware of the deal?

If so, perhaps a letter on his or her letterhead might speed things along. That agent deserves a few lashings with a wet noodle for not living up to her end of the deal.

If this is indicative of the rest of the service she provided, I’d think twice about recommending her in the future.

Q: I’m purchasing my first building as an investor. It’s a nine-unit complex. It will be cash positive from the get-go. Why is the interest rate on the loan so much higher than the super-low rates I see quoted in the newspaper?

A: The short answer is that you’re an investor, not a home buyer. There’s a secondary market for home loans, which is essentially run by two companies called Fannie Mae and Freddie Mac.

These congressionally chartered private companies have a duty to ensure that there is plenty of money (called “liquidity” in industry jargon) available for home loans. They’ve defined a home loan as including single family houses, condos, co-ops, townhouses, and multi-unit buildings up to four units (as long as you live in one of the units).

For home buyers, rates are pretty good, as are the points and fees. Fannie Mae and Freddie Mac keep trying to lower points and fees to make homeownership even more affordable.

But for investors, the game changes.

You’re at the mercy of the commercial mortgage market. Typically, you’ll pay at least a half to one percent higher interest rate than if you were buying a place in which you planned to live. But shop around.

If you plan to make a mini-career out of this, you’ll want to find a nice mortgage broker to help you build your portfolio, and find the best rates out there.

Lodinews Home | News | Sports | Business | Features
Opinion | Obituaries | Classifieds | Archives

SUBSCRIBE TO THE LODI NEWS-SENTINEL

Please report any errors, omissions or changes to the Webmaster.