How Can to Purchase a Modular Home as a First Time Buyer
A modular home is built following the environmental concerns. It is typically a residential property. Manufacturers of modular homes construct the ‘modules’ in an environmentally controlled factory. Modular homes are energy- efficient and high quality despite having a lower financing assistance.
For first time buyers of modular home, it is best to learn what the basic steps in purchasing the property are;
Eligibility to Purchase
As long as you have the cash or can qualify for a loan, you can purchase a modular home. They’re offered first of all to people who intend to be owner-occupants rather than investors. In fact, the initial bid period is open only to those who intend to occupy these homes. If they’re not sold at that time, bidding is then opened to investors and any other interested persons who are eligible.
Bidding for Modular Home
For home buyers, including first-timers, the bidding process on a modular home is fairly straightforward. HUD offers its home inventories through Internet listing websites. A number of large property management companies maintain the sites. Real estate brokers must first register with HUD. They’re then allowed to submit bid offers and purchase contracts on behalf of their clients. HUD will also pay the commission for the broker if it accepts her client’s bid and purchase offer.
Modular Home Financing
HUD doesn’t directly finance the purchase of its modular homes. Winning bidders pay either through their own savings or through mortgage financing. For first-time modular home buyers, the government offers many different kinds of federally insured (FHA) or guaranteed (Veterans Affairs, for eligible military veterans and their families) mortgage programs. Some even feature assistance with down payments, plus there are no-down payment programs as well. It’s also not necessary to have an approved mortgage in order to bid.
Considerations When Buying a Modular Home
HUD homes aren’t warranted or guaranteed. The agency recommends that a professional home inspection be done before bidding. HUD also has its properties appraised before it puts them on the market. Once that’s done, they’re offered at fair market value based on those appraisals. That doesn’t mean a low bid won’t be accepted, though. If it gives HUD an expected return on investment, there’s a good chance the agency could approve it.
In case you still have question about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile you can check our modular home price sheets by signing up to our blog
