The Perfect Economic Storm for Manufactured Housing by Dan Freeman

Question. Is now really a good time to consider buying a manufactured home?

Answer. It is not just a good time. Right now there is unique mix of market factors coming together to make this the perfect time to buy a manufactured home.

The federal government's first-time homebuyers tax credit has been popular with home buyers across the country. As well it should be. It is a great, one time, out-right, gift from Uncle Sam that NEVER has to be repaid. The IRS says that the credit can be applied to manufactured homes. To qualify, the home price must also be $800,000 or less. While it would be rare for a manufactured home to exceed that amount there is no doubt that you can get the most home for each dollar invested when purchasing a manufactured home

In these times of tight money rising bills and high unemployment, manufactured housing has become a wise choice as well as a better hedge against inflation than most site built investments. As the price of housing dropped

dramatically across the county the superior staying power of manufactured home values became more apparent to those tracking prices. All home values dropped but the percentage of value in manufactured homes across the country has fallen considerably less.

The IRS rules are similar whether the buyers are getting a new or an existing manufactured home . There are some differences manufactured home shoppers need to understand. The tax credit is up to $8,000 for first-time buyer, who has not owned a principal residence for the three-year period prior to the purchase . BUT you can get only $6,500 if you are repeat buyers, who owned and resided in the same home for at least five consecutive years out of eight years prior to the purchase . Additionally the seller can not be a relative.

ITS NOT TOO LATE!!

It is not too late to get your manufactured home and the credit. Purchasers must contract to purchase on or before April 30 and the sale must be closed on or before June 30 . While this is not much time for the drawn out process of building a site built house, you still have plenty of time to make your moves with a manufactured home. . Most dealers have both new and pre-owned homes in stock that can be delivered and sited in plenty of time to meet the June deadline.

THE PROBLEM WITH FINANCING

The timing for a home purchase involving financing is more critical. A home is deemed purchased on the

date you first occupy the home. Therefore, the you must move in by June 30. If you need financing NOW is the time to start the application process.

Most mortgages take a minimum of three months to perfect. BUT...they can take considerably longer if the banks is waiting for or requires additional documentation. If your financing is not completed you will miss this once in a lifetime opportunity. If you want to be assured that you will qualify you best start the process ASAP! Manufactured home loans like financing for any type residence at this time are not easy to find or qualify for. The best strategy is to pre-qualify as soon as you can. The easiest way to do that in this electronic age is on the internet.

You can waste a lot of time searching for the lender that will work best for you. Searching and surfing to several different lender's web sites can be very time consuming. Find a site where you can apply and pre-qualify with multiple lenders. These type sites are your best opportunity. You can submit one short form which is forwarded to several different lending offices. Would you rather spend time hunting, searching and filling out different applications across the net? OR Would you like to fill out a single form and let the lenders who are interested contact you? Its a no-brainer.

WHAT IF YOU CANT QUALIFY FOR A BANK LOAN ?

Manufactured housing offers a better chance of getting that home NOW, and qualify for the federal credit. It owner financing

is true. Most lenders have tightened their qualifying requirements. Many of us just will not be able to find a bank loan in today's market. All lenders have slowed their processing down in order to avoid more problem loans that caused the great banks, the country and the world to the edge of economic ruin just a year ago.

There are dealers and investors across every state that are actively and enthusiastically owner financing manufactured homes. To find the ones in your area check your local newspaper and internet classifieds. Owner financing is generally much faster and with less hassles not only to qualify for but to complete. Most owners that are financing can close in just a few days. They are also very aware of the tax credit rules and will gladly assist you through the process.

NOW IS THE TIME TO BUY A MANUFACTURED HOME

In addition to the federal credit (up to $8000) you have several other very favorable factors working for you at perfect economic storm

this time. Land is cheap. In most markets vacant lots are just not selling. There is virtually zero demand. As a result vacant land prices are lower that they have been for the last seven years. In my area residential lots that were for sale at $40,000 in 2006 are now selling at $5000 or even less.

Site preparation and land Improvements can also be made comparatively inexpensively. Contractors that install water, sewer, electric, manufactured homes and additions, have little or no future work on their books. The local markets for these services have become very competitive. Prices have been driven to lows that we have not seen in years.

Now is the time. The perfect economic storm has cleared a unique path for manufactured home buyers. Pay attention, act now, because it is not likely this alignment of factors will be so favorable, all at the same moment, again.

Dan Freeman has participated in various segments of the manufactured housing business since 1979. He currently buys renovates, retails and wholesales manufactured home and land packages. Dan also is experienced in manufactured home re-marketing, re-locating and creative finance techniques. He is a regular contributor to the Manufactured Housing Global Network. To contact him with your questions write to free@xpr.com.