For those following DR...I need advice on housing!

[Jzsnow]

I am just now starting DR. A year ago my family (dh and 3 kids) moved back to out hometown and was given a double wide mobile home. We've done a ton of work on it...about 8k worth. Welll, now we are thinking of selling it and moving to a better area for jobs. My DH can't find work here, even though he has an MBA. No job without experience, and no experience without a job! So...we have an offer on our mobile home. 20k from a family member. They are moving here in 3 weeks, on Nov 1. We have to make a decision by then. If we do sell, we will move away and pray he gets a better job. Really, he's only making $11 an hour and I am a sahm. With 3 kids, I can't go out and get a job.

 

So...would it be wise to buy another mobile home, under 20k, so we don't have a house payment? OR, would it be wise to rent? I know that DR is against living in mobile homes because they don't hold their value. However...we aren't in a position to buy a home right now. So, if we stay there for 2 years, we have free rent after that...if you look at it like that.

 

Thanks!!

Jessica

[swellmomma]

I would by so you don't have housing expenses over your head each month(ie rent). IF I could buy a mobile right now I would even though my rent is low just to get out of paying each month for something that could be taken away at anytime. Unfortunately single wide mobiles in my area go for between 90-100K right now

[Rich with Kids]

We just started, too. I don't have any advice, but we are making some of the same decisions. We want to sell one of our cars and buy a "beater", but we don't feel like we can get enough to pay it off at this point.

 

I think buying the mobile home sounds like a good plan for you. You could call in to his show and ask D.R. what he thinks. Good luck on your journey!

[A.J. at J.A.]

I listen to Dave Ramsey quite a bit and I think he would tell you NOT to put money into a mobile home. He really doesn't recommend those since they do not increase significantly in value.

 

I found a link to where he answers this questions specifically: Should you keep the mobile home?

 

Blessings,

Angela

[jejily]

I can tell you what DR would say about buying a mobile home: DON'T.

 

Rent instead.

 

He'll tell you that the mobile home is unwise because, unlike a home and more like a car, it depreciates in value, and you can rarely sell it for what you paid for it. You lose money on it. Plus, all the repairs are your financial responsibility.

 

Monthly rent payments may be the same, or even slightly more, than a mobile home payment, but at least you can call the landlord for repairs, if needed.

 

 

ETA: A.J. beat me to the punch! :)

[Michelle My Bell]

Mobile Homes can be really hard to sell, so I would only buy a mobile home if you are committed to living in it for awhile.

 

Michelle

[Jzsnow]

Angela,

 

Would it make more sense to keep paying rent over and over for years?? I mean, for 18k I can buy this mobile home...and i'm selling my double wide for 20k. This is where I am having a hard time. If I live in it for 5 years, and only sell it for 10k then i've paid just $133 a month! I can't rent for cheaper than that!

 

I'm so confused!

[A.J. at J.A.]

Angela,

 

Would it make more sense to keep paying rent over and over for years?? I mean, for 18k I can buy this mobile home...and i'm selling my double wide for 20k. This is where I am having a hard time. If I live in it for 5 years, and only sell it for 10k then i've paid just $133 a month! I can't rent for cheaper than that!

 

I'm so confused!

 

I'm sorry, I don't know what to do in your situation, as much as I'd like to help. I just wanted to share what Dave Ramsey has expressed in the past. You might be able to get through on his call-in show or even send him an email and he might answer it on air.

 

Blessings!

Angela

[Wendi]

As an avid DR listener, here's what I think...

 

You'd be better off renting as cheaply as possible, and stashing away the rest of the cash for an emergency fund, especially since dh is out of work and you do not know where you will ultimately end up living.

 

Wendi

[Renee in NC]

We bought a double wide on a rented lot for less than what you are talking about. We decided this was better than renting because rent would be $1000 a month and our lot rent is $350 a month. We can easily come up with $350 a month, even if we can only work odd jobs - $1000 would be close to impossible even now.

 

In our case, we borrowed money to buy it and fix it up, but even with that payment (which will be gone soon), we are better off here.

[Melissa in CA]

I don't care what DR says...if you can buy a mobile home outright with no mortgage payments then do it. How ridiculous to pay rent that will never be recouped. At least with the mobile home you'll get SOME of your money back upon selling.

 

And about mobiles not retaining their value....hogwash. If you take care of your home, and the housing market rises, the resale price of your mobile will rise also.

 

Now if someone CAN afford to purchase a stick-built home, then by all means go that route. You will pay more money for it than a mobile, but you won't have the mobile home stigma attached to you that so many detest.:001_huh:

 

My dh and I CHOSE to go mobile after living in a nice stick-built home in the city. We wanted to move out of town on some property. We could not in a million years afford any of the stick houses on property, at least not in the time frame we gave ourselves to have it paid off, so we purchased 2 1/2 acres of property and placed a new 2400 sq ft manufactured home on it to be paid off in 15 years. About two years ago we refinanced at a lower percentage and our home was appraised by Wells Fargo at being worth over $140.000 more than what we paid for it NEW four years prior. I know that if we were to put our house on the market it would sell immediately. You see, we take very good care of our home. Many don't, whether manufactured or stick framed...and THAT will effect your resale value.

 

I say, forget DR. Do what you and your dh thinks is best for YOUR situation. Renting, if you don't have too, is ludicrous to me. It's just throwing your money away never to be seen again. :confused:

 

My two cents...

[TraceyS/FL]

I don't care what DR says...if you can buy a mobile home outright with no mortgage payments then do it. How ridiculous to pay rent that will never be recouped. At least with the mobile home you'll get SOME of your money back upon selling.

 

And about mobiles not retaining their value....hogwash. If you take care of your home, and the housing market rises, the resale price of your mobile will rise also.

 

Now if someone CAN afford to purchase a stick-built home, then by all means go that route. You will pay more money for it than a mobile, but you won't have the mobile home stigma attached to you that so many detest.:001_huh:

 

My dh and I CHOSE to go mobile after living in a nice stick-built home in the city. We wanted to move out of town on some property. We could not in a million years afford any of the stick houses on property, at least not in the time frame we gave ourselves to have it paid off, so we purchased 2 1/2 acres of property and placed a new 2400 sq ft manufactured home on it to be paid off in 15 years. About two years ago we refinanced at a lower percentage and our home was appraised by Wells Fargo at being worth over $140.000 more than what we paid for it NEW four years prior. I know that if we were to put our house on the market it would sell immediately. You see, we take very good care of our home. Many don't, whether manufactured or stick framed...and THAT will effect your resale value.

 

I say, forget DR. Do what you and your dh thinks is best for YOUR situation. Renting, if you don't have too, is ludicrous to me. It's just throwing your money away never to be seen again. :confused:

 

My two cents...

:iagree:

 

And i think the area you live in matters too. But if you can pay for your home (or most of it), i'd rather have that and bank my extra money each month than pay rent that gets me nothing.

[Tabrett]

I don't follow DR, but would he say something like- you need to put your kids in ps or day care and work 2 jobs and your dh needs to work 2 jobs until you can afford to buy a house? I'm sure DR is great and all, but we each need to look at our situation. If you can buy a house and have no rent, that would put your family in an advantage. Even if it is a mobile home. If you were to rent for $700 a month (about as cheap as it is were I live) for 2 years you have wasted $16,800 of your 20K. If you bought a mobile home and live in it for 2 years and sold it for $10,000 you have saved $6,800 dollars. You would now have $10,000 to put down on a house verses $3,200.

I don't think he considers being a SAHM an option. If he doesn't consider that an options you have to take his principles and apply them how they would best fit your situation.

This is why I don't follow him. If I were to follow DR, I would have to work full time, rent for about 10 years and save my WHOLE pay check to be able to buy a house debt free and that doesn't include having to save for cars either. In that time, I would have missed my dc's entire childhood. 10 years!!!!! I would rather make payments on my mortgage than miss my dc growing up.

[Scarlett]

I don't follow DR, but would he say something like- you need to put your kids in ps or day care and work 2 jobs and your dh needs to work 2 jobs until you can afford to buy a house? I'm sure DR is great and all, but we each need to look at our situation. If you can buy a house and have no rent, that would put your family in an advantage. Even if it is a mobile home. If you were to rent for $700 a month (about as cheap as it is were I live) for 2 years you have wasted $16,800 of your 20K. If you bought a mobile home and live in it for 2 years and sold it for $10,000 you have saved $6,800 dollars. You would now have $10,000 to put down on a house verses $3,200.

I don't think he considers being a SAHM an option. If he doesn't consider that an options you have to take his principles and apply them how they would best fit your situation.

This is why I don't follow him. If I were to follow DR, I would have to work full time, rent for about 10 years and save my WHOLE pay check to be able to buy a house debt free and that doesn't include having to save for cars either. In that time, I would have missed my dc's entire childhood. 10 years!!!!! I would rather make payments on my mortgage than miss my dc growing up.

 

This is not correct. He is very very much for SAHMs if that is what she and her dh want.

[Scarlett]

I don't follow DR, but would he say something like- you need to put your kids in ps or day care and work 2 jobs and your dh needs to work 2 jobs until you can afford to buy a house? I'm sure DR is great and all, but we each need to look at our situation. If you can buy a house and have no rent, that would put your family in an advantage. Even if it is a mobile home. If you were to rent for $700 a month (about as cheap as it is were I live) for 2 years you have wasted $16,800 of your 20K. If you bought a mobile home and live in it for 2 years and sold it for $10,000 you have saved $6,800 dollars. You would now have $10,000 to put down on a house verses $3,200.

I don't think he considers being a SAHM an option. If he doesn't consider that an options you have to take his principles and apply them how they would best fit your situation.

This is why I don't follow him. If I were to follow DR, I would have to work full time, rent for about 10 years and save my WHOLE pay check to be able to buy a house debt free and that doesn't include having to save for cars either. In that time, I would have missed my dc's entire childhood. 10 years!!!!! I would rather make payments on my mortgage than miss my dc growing up.

 

I'm trying to do 10 things at once, so my thoughts are fractured, but I wanted to address this. He most certainly DOES consider being a SAHM an option even with very low income. What he mostly advocates is living within ones means. And he also addresses income issues..how to get a job, where to get a job, how to market ones small business or services.

 

He is also not against financing a home...HE doesn't do that and says he never will again, but it is the one area where he thinks it is ok for others to finance. His guideline is 15 year fixed loan with a payment being not more than 25% of your net pay.

 

You really should listen to him or pick up his book. I don't think you have an accurate picture of his principles.

[Scarlett]

So...would it be wise to buy another mobile home, under 20k, so we don't have a house payment? OR, would it be wise to rent? I know that DR is against living in mobile homes because they don't hold their value. However...we aren't in a position to buy a home right now. So, if we stay there for 2 years, we have free rent after that...if you look at it like that.

 

Thanks!!

Jessica

 

Here is where I'm confused....Do you already know where you will move if you move? If not, where would you buy this mobile home? Are you planning on waiting until you find another job and THEN buy one?

 

You are correct that DR would not think you should buy a mobile home...but more info is needed. Are you debt free?

[Confuzzled]

The thing is, DR would recommend that you follow the Baby Steps with that 20k. First save 1k for your baby emergency fund, then pay off all debt, then save enough cash for 4-6 months of expenses.

 

You didn't say where you are in the steps, whether you're debt-free or not. It would make a difference in how he would advise you to use the money.

 

I have heard him say that buying a cheap used mobile home to live in temporarily is sometimes OK.

 

Kris

Edited October 13, 2008 by Confuzzled
typo

[shell in SC]

If your intent is to turn around and sell in a few years and try to make money off this, please do some research first. In our area of the country, it is VERY difficult to get financing for mobile homes unless they are new. And if you can then it is very restrictive. We moved out of a double wide mobile home into our present home and we had every intention of selling. Unfortunately we were unable to find a seller that could arrange financing. We have to rent the mobile home out and do not even receive enough to break even after taxes and insurance.

 

Some mobile home manufactures are better than others, so some do value well, some don't. I would hate for you to buy this thinking you will make money off it in the near future and when you get to that point, find that you can't. It stinks, I am there! So please do some research before you jump into this!!!!

 

shell

[Renai]

I don't follow DR, but would he say something like- you need to put your kids in ps or day care and work 2 jobs and your dh needs to work 2 jobs until you can afford to buy a house?

 

No, he would not. He is all for stay-at-home moms, homeschooling moms, and not having to place children in daycare or ps- every family is different and respects each families choice to make that decision. He does teach that families should live within their means; so if mom was in the workforce and came home, the family should not still be living like they still have that $30K (or whatever amount) mom was bringing home. If mom has always been home, he gives tips on how the family should create a budget so mom can stay at home.

 

I don't think he considers being a SAHM an option. If he doesn't consider that an options you have to take his principles and apply them how they would best fit your situation.

This is why I don't follow him. If I were to follow DR, I would have to work full time, rent for about 10 years and save my WHOLE pay check to be able to buy a house debt free and that doesn't include having to save for cars either.

 

As stated above, he very much supports SAHM. He also talks about having a home mortgage, and knows realistically most people will have one. Nothing in what he teaches comes close to what you've posted. I don't know where the information came from that you posted above, but it might be helpful to listen to him at least once to get a fair assessment of what he believes and considers. None of what was posted above comes even close.

 

Hope this helps. This is a bunny trail, I know, but just wanted to clarify.

Edited October 13, 2008 by Renai
changed wording

[A.J. at J.A.]

I don't think he considers being a SAHM an option. If he doesn't consider that an options you have to take his principles and apply them how they would best fit your situation.

 

That's just not true! He highly esteems SAHMs. It's just that you STILL have to live within your means on one income! Also, if you have debt it will just take longer to get out of it.

 

Blessings,

Angela

Edited October 13, 2008 by A.J. at J.A.

[Tabrett]

I'm trying to do 10 things at once, so my thoughts are fractured, but I wanted to address this. He most certainly DOES consider being a SAHM an option even with very low income. What he mostly advocates is living within ones means. And he also addresses income issues..how to get a job, where to get a job, how to market ones small business or services.

 

He is also not against financing a home...HE doesn't do that and says he never will again, but it is the one area where he thinks it is ok for others to finance. His guideline is 15 year fixed loan with a payment being not more than 25% of your net pay.

 

You really should listen to him or pick up his book. I don't think you have an accurate picture of his principles.

Like I said, I don't follow him, but I have heard financial radio shows say things like what I mentioned. I'm just wondering what type of home a single income family could afford following his guidelines? I just played around with a mortgage calculator and you would have to have around a 45K income, after taxes, to be able to afford a $110,000 home at 6% for 15 years. I couldn't buy a home for $110,000 where I live:confused:. Maybe where I live is too expensive? Well, I might be able to buy a 2 bedroom, 900sqft house, if I was very,very lucky. But a 4 bedroom mobile home on my own property for $110,000 would look more promising IMHO. But then again, I'm, not sure that $110,000 would even buy a moblile home and property.

[A.J. at J.A.]

Like I said, I don't follow him, but I have heard financial radio shows say things like what I mentioned. I'm just wondering what type of home a single income family could afford following his guidelines? I just played around with a mortgage calculator and you would have to have around a 45K income, after taxes, to be able to afford a $110,000 home at 6% for 15 years. I couldn't buy a home for $110,000 where I live:confused:. Maybe where I live is too expensive? Well, I might be able to buy a 2 bedroom, 900sqft house, if I was very,very lucky. But a 4 bedroom mobile home on my own property for $110,000 would look more promising IMHO. But then again, I'm, not sure that $110,000 would even buy a moblile home and property.

 

I hope I'm not going to get in trouble here...and I don't mean to be offensive at all. But I think the idea is that as Americans people feel entitled to own a home even if they really can't afford one. That's part of the current crisis that the banks have fed into, giving mortgages to people who just can't afford them. Unfortunately, if you can't afford a home, then you just can't buy a home. I don't know how else to say it, and I'm not trying to be mean or anything so please don't take it wrong.

 

Blessings,

Angela

[Scarlett]

Like I said, I don't follow him, but I have heard financial radio shows say things like what I mentioned. I'm just wondering what type of home a single income family could afford following his guidelines? I just played around with a mortgage calculator and you would have to have around a 45K income, after taxes, to be able to afford a $110,000 home at 6% for 15 years. I couldn't buy a home for $110,000 where I live:confused:. Maybe where I live is too expensive? Well, I might be able to buy a 2 bedroom, 900sqft house, if I was very,very lucky. But a 4 bedroom mobile home on my own property for $110,000 would look more promising IMHO. But then again, I'm, not sure that $110,000 would even buy a moblile home and property.

 

There are lots of financial radio shows who say lots of things, but DR doesn't say anything like what you mentioned.

 

As far as the example you gave above...if you don't follow DR's guideline, then what? You (the collective you) end up with a mortgage that you can't really afford and life is a struggle. He often says buying a home should be a blessing not a burden. If you can't afford it you can't afford it. However, if you follow his baby steps you might be surprised what you can afford one day. You can save enough of a down payment so that a home is with in reach.

[Scarlett]

I couldn't buy a home for $110,000 where I live:confused:. Maybe where I live is too expensive? Well, I might be able to buy a 2 bedroom, 900sqft house, if I was very,very lucky. But a 4 bedroom mobile home on my own property for $110,000 would look more promising IMHO. But then again, I'm, not sure that $110,000 would even buy a moblile home and property.

 

I would much rather have a 900 sf home than a mobile home. A mobile home will not typically retain its value. Dh and I had a 1000 sf 2 br home for 14 years. When we sold it we had 50k to put down on our current home.

[Jzsnow]

Here is where I'm confused....Do you already know where you will move if you move? If not, where would you buy this mobile home? Are you planning on waiting until you find another job and THEN buy one?

 

You are correct that DR would not think you should buy a mobile home...but more info is needed. Are you debt free?

 

The only debt we have is student loans. We aren't in repayment yet. Next year. If we move, we will move to Birmingham, AL to live near my DH's family. OR, we will move to Lubbock,TX to help my grandpa out. He's 91, recently widowed, and has no family near. I checked out mobile homes in both areas to get an idea of cost. 18.5k is about the norm for a used house.

 

jessica

[Jzsnow]

If your intent is to turn around and sell in a few years and try to make money off this, please do some research first. In our area of the country, it is VERY difficult to get financing for mobile homes unless they are new. And if you can then it is very restrictive. We moved out of a double wide mobile home into our present home and we had every intention of selling. Unfortunately we were unable to find a seller that could arrange financing. We have to rent the mobile home out and do not even receive enough to break even after taxes and insurance.

 

Some mobile home manufactures are better than others, so some do value well, some don't. I would hate for you to buy this thinking you will make money off it in the near future and when you get to that point, find that you can't. It stinks, I am there! So please do some research before you jump into this!!!!

 

shell

 

Thank you. I am not doing this to make money. We like the idea of not having a rent payment. Also, it would be great to pay off our student loans while not having rent to pay, kwim?

[Jzsnow]

I hope I'm not going to get in trouble here...and I don't mean to be offensive at all. But I think the idea is that as Americans people feel entitled to own a home even if they really can't afford one. That's part of the current crisis that the banks have fed into, giving mortgages to people who just can't afford them. Unfortunately, if you can't afford a home, then you just can't buy a home. I don't know how else to say it, and I'm not trying to be mean or anything so please don't take it wrong.

 

Blessings,

Angela

 

well, I do agree that if you can't afford a home then you shouldn't buy one. However, in my situation, it would cost me far more in rent then it would be to buy this mobile home, even if I have to give it away when we are done with it!

 

I have my 1k in savings, too.

 

jessica

[Scarlett]

The only debt we have is student loans. We aren't in repayment yet. Next year. If we move, we will move to Birmingham, AL to live near my DH's family. OR, we will move to Lubbock,TX to help my grandpa out. He's 91, recently widowed, and has no family near. I checked out mobile homes in both areas to get an idea of cost. 18.5k is about the norm for a used house.

 

jessica

 

 

Ok. I think Dave would say that the $20K should go into your emergency fund. You are in crisis mode because your dh has no job. I believe he would say you should rent until your dh has a job and you decide where to live. Would you be living with family temporarily? That would give you a chance to breath and decide what part of the city you want to live in ect. Even though the student loans are not yet in repayment you still owe them and DR would say to get them paid before buying a home.

 

Is the place you move to being decided by where your dh finds the job?

[Renai]

Like I said, I don't follow him, but I have heard financial radio shows say things like what I mentioned. I'm just wondering what type of home a single income family could afford following his guidelines? I just played around with a mortgage calculator and you would have to have around a 45K income, after taxes, to be able to afford a $110,000 home at 6% for 15 years. I couldn't buy a home for $110,000 where I live:confused:. Maybe where I live is too expensive? Well, I might be able to buy a 2 bedroom, 900sqft house, if I was very,very lucky. But a 4 bedroom mobile home on my own property for $110,000 would look more promising IMHO. But then again, I'm, not sure that $110,000 would even buy a moblile home and property.

 

It is a guideline. I've heard him talk about 20 yr and 30 yr mortgages (with the goal of paying it off faster), but the ideal is a 15yr, fixed rate, etc. A person able to do this is in a very good position to buy and keep the home. And, if you're debt-free, how much further would your income stretch?

 

It is very hard not to buy a mobile home in this area, so I hear you. All around my dh's job, they are asking why doesn't he just buy a trailer? But, we'd still have to rent the space. It's not easy (or comfortable) to go against what seems "normal." But normal is also being neck-deep in debt and we don't want that either. And, fwiw, 900sqft sounds good to me right now- we're living in 659sq (3 humans, 2 dogs, 1 cat, and a fish tank :D). We live in a tourist area, and where lots of rich folks settle down, so prices are very inflated here. And no, $110,000 might buy someone a condo here (a one bedroom at that). I do hear what you are saying.

 

But, aside from all that, please do not confuse Dave Ramsey with anyone else you may hear on the radio.

[Scarlett]

well, I do agree that if you can't afford a home then you shouldn't buy one. However, in my situation, it would cost me far more in rent then it would be to buy this mobile home, even if I have to give it away when we are done with it!

 

I have my 1k in savings, too.

 

jessica

 

I think you should try to get into Dave's radio program. Who knows he might say buy the mobile home.

[cathmom]

I hope I'm not going to get in trouble here...and I don't mean to be offensive at all. But I think the idea is that as Americans people feel entitled to own a home even if they really can't afford one. That's part of the current crisis that the banks have fed into, giving mortgages to people who just can't afford them. Unfortunately, if you can't afford a home, then you just can't buy a home. I don't know how else to say it, and I'm not trying to be mean or anything so please don't take it wrong.

 

Blessings,

Angela

 

Except our mortgage payment is several hundred dollars less than anything we could rent where we live! And an apartment would be half the space, and we probably have too many dc to rent an apartment even if we were willing to live in a 2 bedroom.

[Jen500]

Thank you. I am not doing this to make money. We like the idea of not having a rent payment. Also, it would be great to pay off our student loans while not having rent to pay, kwim?

 

You should also consider any costs of owning a mobile home besides rent. Will you pay rent for property (where will you actually live in the home), will you pay property taxes and insurance? I don't know much about mobile homes, but maybe you can also estimate the average yearly costs for repairs and maintenance.

[shell in SC]

Thank you. I am not doing this to make money. We like the idea of not having a rent payment. Also, it would be great to pay off our student loans while not having rent to pay, kwim?

 

 

I do kwym! Sometimes I think about how much money we could save/invest/whatever if we moved back into that place! Our mortgage pmt is 3 times the payment on that house. . and it had a huge kitchen. . .my kitchen now is tiny. . .but I digress!

 

shell

[Kim in Appalachia]

Around here the mobile home could be a better deal. Renting can be expensive and the houses are old, so they are expensive to heat/air. There is a decent resale market for mobile homes in this area. You will not get out of it what you put into it, but you don't get anything out of renting.

[Jzsnow]

Ok. I think Dave would say that the $20K should go into your emergency fund. You are in crisis mode because your dh has no job. I believe he would say you should rent until your dh has a job and you decide where to live. Would you be living with family temporarily? That would give you a chance to breath and decide what part of the city you want to live in ect. Even though the student loans are not yet in repayment you still owe them and DR would say to get them paid before buying a home.

 

Is the place you move to being decided by where your dh finds the job?

 

I understand about the e-fund. Honest. However, here is my thinking....if we buy the mobile home, he can get a very small paying job, if he has to, since we have no rent.

 

Living with family is not an option on their part. We would be okay with it...but they are very much against kids coming back home. If we sell, we are moving one of the 2 places i mentioned before.

[Jzsnow]

You should also consider any costs of owning a mobile home besides rent. Will you pay rent for property (where will you actually live in the home), will you pay property taxes and insurance? I don't know much about mobile homes, but maybe you can also estimate the average yearly costs for repairs and maintenance.

 

Jen, the mobile home is on family land that we will use. No cost there. I've lived in a mobile home for the past 1.5 years, and in another one for 2 years about 3 years ago. Insurance is about 100 a month, but right now I am paying 187 a month cause I live in hurricane alley. Taxes are very low. I don't remember what we paid, but it wasn't much at all!

[Scarlett]

I understand about the e-fund. Honest. However, here is my thinking....if we buy the mobile home, he can get a very small paying job, if he has to, since we have no rent.

 

Living with family is not an option on their part. We would be okay with it...but they are very much against kids coming back home. If we sell, we are moving one of the 2 places i mentioned before.

 

Are you moving with or without a job?

 

And I do see your point about having no rent and therefore being able to get by on very little. There is an emotional aspect to this that I do understand. It feels more secure to have the mobile home than to worry about how to pay the rent. I think the COL is Birmingham is fairly low...anyone know for sure?

 

Also, I dont know anything about your dh, but maybe he would be more motivated to find a better job if he knew there was rent to pay.

 

Personally, there is no way I would move to a new city and right away buy anything. I would rent until I felt settled and until the job situation felt stable and THEN see where you are financially.

 

JMO. YMMV.

[Tabrett]

I hope I'm not going to get in trouble here...and I don't mean to be offensive at all. But I think the idea is that as Americans people feel entitled to own a home even if they really can't afford one. That's part of the current crisis that the banks have fed into, giving mortgages to people who just can't afford them. Unfortunately, if you can't afford a home, then you just can't buy a home. I don't know how else to say it, and I'm not trying to be mean or anything so please don't take it wrong.

 

Blessings,

Angela

I'm not taking anything wrong or offensive:D. I'm very fortunate to be able to afford a home. But I would be curious to know how many people could afford to buy a home under DR's conditions. Taking a "shot in the dark" guess, I would say maybe 25% of families could afford a home following his advice. Mostly because of how inflated house prices have become. That is not very many families. And I'm not talking about buying a $500,000 house when you can afford a $100,000 house. That's just stupid!

But if I was living with in my means and I was faced with buying a 4 bedroom mobile home verses a 900sqft 2 bedroom house, considering I have 4 dc and a dh, I would take the mobile home. Having a home my family fit more comfortably would be more important.

If it were just me, dh and one dc a 900sqft house would be fine.

I think it really depends on your situation.

[Jzsnow]

Are you moving with or without a job?

 

And I do see your point about having no rent and therefore being able to get by on very little. There is an emotional aspect to this that I do understand. It feels more secure to have the mobile home than to worry about how to pay the rent. I think the COL is Birmingham is fairly low...anyone know for sure?

 

Also, I dont know anything about your dh, but maybe he would be more motivated to find a better job if he knew there was rent to pay.

 

Personally, there is no way I would move to a new city and right away buy anything. I would rent until I felt settled and until the job situation felt stable and THEN see where you are financially.

 

JMO. YMMV.

 

We hope to move WITH a job. It isn't that DH isn't trying to get a better job...he applies for TONS of jobs each week. He just has only had 2 jobs his whole life (we are only 26), and his experience isn't in what his degree is in. He also works m-f 8-6, which makes it really hard to job search. He does send resumes out, apply online to places and do phone interviews. Birmingham is LCOL, but rent there is still about $800 a month...

 

Since his family lives there, we know the area well. He grew up there.

 

Thank you all so much for helping me think this out!!

[Scarlett]

I'm not taking anything wrong or offensive:D. I'm very fortunate to be able to afford a home. But I would be curious to know how many people could afford to buy a home under DR's conditions. Taking a "shot in the dark" guess, I would say maybe 25% of families could afford a home following his advice. Mostly because of how inflated house prices have become. That is not very many families. And I'm not talking about buying a $500,000 house when you can afford a $100,000 house. That's just stupid!

But if I was living with in my means and I was faced with buying a 4 bedroom mobile home verses a 900sqft 2 bedroom house, considering I have 4 dc and a dh, I would take the mobile home. Having a home my family fit more comfortably would be more important.

If it were just me, dh and one dc a 900sqft house would be fine.

I think it really depends on your situation.

 

I don't know the answer to that question. I do know that there is a huge financial crisis going on in this country that many attribute to a mortgage crisis which happened as a result of sub prime loans being given to people who did not qualify for a tradtional mortgage. In other words, they were buying what they couldn't afford. So if only 25% can afford a home, then ok...I guess only 25% should buy a home.

 

As to whether you should buy a mobile home if you can't qualifiy for a mortgage under DR's guidelines...I think that is a seperate issue.

[A.J. at J.A.]

well, I do agree that if you can't afford a home then you shouldn't buy one. However, in my situation, it would cost me far more in rent then it would be to buy this mobile home, even if I have to give it away when we are done with it!

 

I have my 1k in savings, too.

 

jessica

 

Dear Jessica,

 

Please understand that I in no way meant to imply that my answer was in reference to you or your original question. It was strictly a reply to that one quote in another post. I think you know that, but I just wanted to make that clear. My response was not an attack on you or your post. :D

 

I think you are wise to be thinking of all of the implications of this decision. Ultimately, you need to go with whatever you and your DH feel is the wisest choice for your family.

 

Many blessings,

Angela

[A.J. at J.A.]

Except our mortgage payment is several hundred dollars less than anything we could rent where we live! And an apartment would be half the space, and we probably have too many dc to rent an apartment even if we were willing to live in a 2 bedroom.

 

I definitely see where you are coming from! I know there is no cookie cutter answer for everyone.

 

Blessings,

Angela

[Scarlett]

We hope to move WITH a job. It isn't that DH isn't trying to get a better job...he applies for TONS of jobs each week. He just has only had 2 jobs his whole life (we are only 26), and his experience isn't in what his degree is in. He also works m-f 8-6, which makes it really hard to job search. He does send resumes out, apply online to places and do phone interviews. Birmingham is LCOL, but rent there is still about $800 a month...

 

Since his family lives there, we know the area well. He grew up there.

 

Thank you all so much for helping me think this out!!

 

Oh my you are young. :) :D You will be ok either way. It is great that you are debt free (except student loans) at such a young age.

 

What is his degree in?

 

I think B'ham is a nice city. You obviously know more than I do about that though.

[A.J. at J.A.]

I think it really depends on your situation.

 

:iagree:

 

Blessings,

Angela

[Tabrett]

Just curious what DR says to do when rent in your area is higher than buying a home? Like I said before, I am fortunate in being able to have a home. Prior to the house we have now, we bought a home because the rent was higher than a mortgage. We could either rent a 3 bedroom apartment for $980 or purchase a 4 br, 1800sqft townhome for $930 (fixed rate) a month. To get rent lower that $980, you would have to qualify for low income housing (which we didn't).

What does he say in that type of situation?

[Renai]

We hope to move WITH a job. It isn't that DH isn't trying to get a better job...he applies for TONS of jobs each week. He just has only had 2 jobs his whole life (we are only 26), and his experience isn't in what his degree is in. He also works m-f 8-6, which makes it really hard to job search. He does send resumes out, apply online to places and do phone interviews. Birmingham is LCOL, but rent there is still about $800 a month...

 

Since his family lives there, we know the area well. He grew up there.

 

Thank you all so much for helping me think this out!!

 

Thanks for clarifying so much, it really changes the equation a bit, I think.

[A.J. at J.A.]

Just curious what DR says to do when rent in your area is higher than buying a home? Like I said before, I am fortunate in being able to have a home. Prior to the house we have now, we bought a home because the rent was higher than a mortgage. We could either rent a 3 bedroom apartment for $980 or purchase a 4 br, 1800sqft townhome for $930 (fixed rate) a month. To get rent lower that $980, you would have to qualify for low income housing (which we didn't).

What does he say in that type of situation?

 

I believe the point isn't the monthly outflow, but rather the debt incurred that can't feasibly be paid back. You aren't just taking on a monthly bill, with a home purchase & mortgage you are taking on a gigantic loan that you are bound to, unlike a rental.

 

Very similar to when you go to buy a car and they want to dicker with you on the monthly payment when you should really be interested in the total cost of the car.

 

Blessings,

Angela

[Scarlett]

Just curious what DR says to do when rent in your area is higher than buying a home? Like I said before, I am fortunate in being able to have a home. Prior to the house we have now, we bought a home because the rent was higher than a mortgage. We could either rent a 3 bedroom apartment for $980 or purchase a 4 br, 1800sqft townhome for $930 (fixed rate) a month. To get rent lower that $980, you would have to qualify for low income housing (which we didn't).

What does he say in that type of situation?

 

 

He says he gives advice based on what HE would do and what he would do is not buy a house until he walked up the baby steps. Even if rent is higher, that doesn't take into account taxes/insurance/maintenance and the obligation of a mortgage even if you lose your job.

 

So from memory before buying a house

1K in baby e-fund

totally debt free

fully funded e-fund (3-6 months of expensive)

and then buy a house only if the payment is 25% (or less) of your income on a 15 year or less fixed mortgage. He does say it is ok to go outside of that A BIT (maybe up to 30%) if you live in a very HCOL area.

 

However, he gives different advice to people phoning in with questions if they already have purchased the home.

[A.J. at J.A.]

He says he gives advice based on what HE would do and what he would do is not buy a house until he walked up the baby steps. Even if rent is higher, that doesn't take into account taxes/insurance/maintenance and the obligation of a mortgage even if you lose your job.

 

 

Excellent points...I had forgotten to factor that in as well!

 

:iagree:

[TraceyS/FL]

I don't know the answer to that question. I do know that there is a huge financial crisis going on in this country that many attribute to a mortgage crisis which happened as a result of sub prime loans being given to people who did not qualify for a tradtional mortgage. In other words, they were buying what they couldn't afford. So if only 25% can afford a home, then ok...I guess only 25% should buy a home.

 

As to whether you should buy a mobile home if you can't qualifiy for a mortgage under DR's guidelines...I think that is a seperate issue.

 

Having moved from an area that loaned $305,000 to 2 people that picked strawberries for a living and had no down payment, i very much feel that this contributed to the the crisis at hand. That was my best friends house - ours was $378,000.... even I couldn't afford to buy it (well, someone would have given me a loan for it - i never would have taken it).

 

I can say that i have done the move to a new area, bought a house, and it's very freeing to have no payment. OUr taxes and insurance are higher than we expected - so DH can't flip burgers for a living, but it allows you to live VERY cheap if needed (like right now). But overall, i would do the same thing again.

 

I guess the other part of me asks - who the heck is going to rent to you being new in the area and not having a job (or being new on the job). I"ve always wondered how that works.

 

Anyway, keep talking about it and crunching the numbers.

 

:grouphug: