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Joined: 24 Dec 2014
|Making a specific budget work for starter home.
My wife and I have a budget of 16,600 to buy land, install a septic system and put a down payment(2,600 min) for a brand new single wide as a starter home. The septic system will cost $2800. Ideally we would like to find land in this area for $10,000 or less (about .5-1acre) so we could buy cash and only have the mortgage notes. That is more than likely not going to happen as we've looked at every property in the area and have been searching for a while now.
We were already approved for a mobile home loan of $50,000 with a down payment of 2,600. Mortgage would be $420/m. What we haven't done yet is looked into what rates would be like if we would instead finance the land with the home together and simply used the 16,600 to put a bigger down payment($10,000+) and install the septic system with the rest, which is what I'm posting here to get advice about.
We did find a really nice piece of land, 1.5 acres for $14,000. If we would be approved, would there be any downside to financing the land and the new home together, but putting a much bigger down payment? We'd be willing to find a slightly cheaper home to make it work. We could put 10-13k down and use the rest of the cash for the septic system and utility hookups.
Do land + home loans together typically carry the same loan term and rates? I know mobile home loans vary from 15-20 years, but land loans are usually much shorter.