Q-1) Do mobile homes depreciate?
A) In some instances they will. If a home has to be removed from it’s location it will depreciate in value. The same goes for a site-built home if it is removed from its foundation and the property where it is located. National lending sources indicate that the Pacific Northwest is a unique market and that homes in parks are worth considerably more than homes in other regions.
Q-2) What is the issue regarding aluminum wiring?
A) Many mobile homes that were built prior to 1976 used aluminum wiring which has since been considered to be less efficient and even sometimes unsafe because of its poor conductive properties. The use of copper wiring became a federally mandated code on June 15, 1976. The older homes using aluminum are not unfit for occupancy but it would be wise to have any home of that vintage inspected by a licensed electrician or inspector before completing the purchase.
Q-3) What kind of financing is available?
A) In recent years the underwriting guidelines have relaxed so that a qualified purchaser can get into a home with as little as 5% down and 30 years to re-pay. Interest rates will vary greatly, depending on the home you’re purchasing, your individual circumstances and amount of down payment that you have.
Q-4) What if I have bad credit?
A) Good credit is so hard to maintain in these times. Loss of job, rising health care costs and insurance premiums, and many other circumstances can occur that can turn a perfect credit rating into one with numerous slow pays and even bankruptcy. At Advanced Home Brokers we are fortunate to have lenders for almost every kind of credit profile. It’s not so black & white anymore. These lenders look at your individual circumstances and make a decisions based on your strengths, not your weaknesses!
Q-5) Are there taxes on Mobile Homes?
A) Yes. In the state of Oregon, you are charged a personal property tax by the county in which you reside. In the state of Washington, there are sales and/or excise taxes charged to either the buyer or seller as a part of the transaction and there are also personal property taxes charged by the county.
Q-6) Is the interest tax deductible?
A) Surprisingly to most people, yes! If it is your primary residence, the interest charged on a manufactured home is deductible just as a site built home. In some cases the property taxes are also deductible. Some restrictions may apply so you should consult your accountant or C.P.A. for your specific tax advantages.
Q-7) Do mobile home parks raise their rent?
A) Yes. you can expect a rent increase every 12 to 18 months on the average. The actual increase may vary, so the best way to tell is to ask the park manager about past and prospective increases.
Q-8) How do I know it’s a good price?
A) In most cases, if you’re financing the purchase, the lender will require an appraisal. This is for your benefit as well as theirs. They will not finance more than a certain percentage of its actual value. Homes listed by Advanced Home Brokers start with a market analysis using the N.A.D.A. Guide, which is the industry standard for value, much like the Kelly Blue Book for cars. If you’re a cash buyer, you can always make your purchase subject to an independent appraisal. This cost is customarily charged to the buyer.
Q-9) How do I know it’s in good condition?
A) It is advisable to have the offer subject to an independent pest, dry-rot and mechanical inspection. Again, this cost is customarily charged to the buyer.
Q-10) How can I learn more about the Manufactured Housing Industry?
A) Visit the "Helps for You" page of our web-site for direct links to additional information and services or e-mail us and we’d be happy to answer or research any questions you may have!