The IRS began accepting filings for individual filers on Jan 27th. The IRS is estimating that the average tax return this year will be over $3,000. There are plenty of ways to strategically use a refund check. Now could be the perfect time to start saving for a home. Expenses such as the down payment and closing cost will have to be paid upfront. A down payment is normally around 5 to 10% of a house’s total price. The closing cost is around 2 to 4 % of the house’s total price and includes fees like the appraisal cost, flood certificate fee and recording fee. For buyers who may be staying in their home for a long period of time, purchasing discount points will lower interest rates over the life of the loan. For individuals looking for a more minimalistic living situation, purchasing a new mobile home with your tax refund may be an option.
Benefits of buying a new mobile home
There are a variety of new mobile homes in MI. Buying a mobile home can be more affordable than purchasing a traditional home in a few ways. Taxes are lower on mobile homes. Because mobile homes are considered personal property and not real estate, individuals who purchase mobile homes pay a lower percentage of taxes. Since the 1970s and the introduction of HUD codes, mobile home safety has been increasing. With such stringent regulations in place, mobile homes are forced to meet the same standards as traditional homes or harsher standards in some cases. Investing in a new mobile home is as smart as investing in a traditional home. A report from the urban institute found that the annual price growth for mobile homes and traditional homes were basically the same.
Cost of a mobile Home
Before purchasing a mobile home, buyers should keep in mind that along with paying for the mobile home, a piece of land will be required. Land for a mobile home can be rented or purchased. Renting a lot can cost anywhere from $100 to $800 that is not including additional fees such as HOA. Buying the land will cost more upfront but once the land is paid for it will be less expensive than renting.
Types of mobile homes
There are 3 different types of mobile homes. Single wide, double wide, and triple wide.
A single wide mobile home may cost around $50,000. A double-wide mobile home may cost around $90,000. The less common triple wide mobile home cost around $150,000 plus. Buyers will pay even less than this for a used mobile home. A used single wide mobile home can be purchased for as low as $24,000.
A tax return can be used to pay for the upfront cost of purchasing a mobile home, but a lender will still be required to obtain a loan. In most cases, a traditional mortgage will not be an option for purchasing a mobile home. If a buyer is buying a mobile home and the land the mobile home will sit on, along with having the mobile home installed on a foundation system, a standard mortgage may be an option. Many builders who sell mobile homes can arrange financing options for customers to make the purchase easier. For buyers who have to search for a loan, there are a few options. There are FHA loans, USDA Loans, and VA loans for former military members and chattel loans.
Owning a mobile home could be a possibility this tax season. New mobile homes in MI are available from a variety of builders who can assist in the process of picking and customizing a brand new mobile home.