Is the Financing Crisis Truly a Crisis in the Minnesota New Home Construction Market?
April 11, 2010
Is the Financing Crisis Truly a Crisis in the Minnesota New Home Construction Market?
We all know how difficult this past year has been for many business sectors, but believe it or not the mortgage loans for modular homes were fairly accessible. In my dealings with new modular home customers this past year the approval portion of the loan was not difficult, but the appraisal portion got tricky at times.
For those who are not familiar with the appraisal process, in a nutshell it goes like this. When you are requesting a loan from the bank they need to know the new home project you are proposing fits in with the value of other similar homes in your area. The appraiser achieves this by finding comparables (similar homes) in that particular area. With the down market, homes are selling for less and thus bringing down the amount of current value on a new constructed home. This is where I have seen the main mortgage loan problems occur.
One way to combat this problem would be to own your land free and clear and/or have a large down payment. Even though the market is down currently it will eventually stabilize and values will rise.
Basically, I am saying don’t let this down market affect your decision on doing a new home project, because the most important thing is to not compromise. You are spending a large amount of money on a new home and you should make it the way you want.
April-Modular/Manufactured Homes- Did You Know?
April 3, 2010
Did you know?
Our Modular/Manufactured Homes are built in a controlled environment safe from the wind and rain. Next time you drive by a construction site on a rainy day, think about all that water seeping into the floors and walls. It takes a long time for that water to dry up – if it ever does.
Our Homes are built in an enclosed environment and the elements will never reach the inside of your home. In fact your home won’t even know what a rainy day is until the room is on and the windows are sealed.
The Minnesota Modular Home Tax Credit Deadline
April 1, 2010
The Minnesota Modular Home Tax Credit Deadline is Near!
By Dustin Falling-Life Style Homes of Litchfield
For those of y
ou still looking to take advantage of the home tax credit the deadline is quickly approaching. Below is a quick recap of this tax credit.
For a first-time home buyer, who has not owned a home in the last three years can receive ten percent of the home sale price or $8,000, which ever is less.
Now if you are a current home owner selling or demolishing your home, who has owned a home for five consecutive years in the pervious eight you are eligible for tax credit of ten percent of the home sales price or $6,500, which ever is less.
You must close on your home or at least have a written binding contract to purchase a modular home by April, 30, 2010. If you have a signed contract by this date you must have the home project closed by July 1, 2010.
Houselog Home- Grove City, MN
“After three months visiting manufactured home dealerships and visiting with owners, we decided the homes by Life Style Homes fit our needs. We liked the versatility of home plans and the type of construction offered. It took us another month to decide on the exact style and features we wanted. Since we have moved in, [...]
