Need opinions

Old 05-12-2005, 10:35 PM
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brightlight
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Need opinions

I know thought this is an impossible thing really to give advice about, but I need some opinions. My husband and I, and two kids, one boy and one girl, live in a small trailer that is paid for in a trailer park. This is an older trailer and it is not big enough. Only 2 bedrooms. We wanted to buy, but we can only get a loan for around $110,000 and the houses are around $130,000. We have been trying to save and have some for a down, but the houses keep going up. We thought about buying a trailer in a park, but with all the rules in a trailer park we do not want to do that. This park is okay, but no room for doublewides. We are thinking of renting. Rent will be around $900. We only pay $225 lot rent, but we do not have enough room. If we stay in this area then we will have to pay this rent, but maybe could get a loan for a larger amount next year and buy a house. My income has gone up and he has a good job. We could leave the state and buy a house that was cheaper, but do not know where we could move to because we have no real reason to move other than buy a place cheaper. I look on the internet and see places for sale in states like Texas, Arkansas, Okla., and Kansas and the houses are around $60,000 and even less, but not sure why they are cheaper. Bad neighborhoods, no jobs? Not sure why and I feel that $130,000 and around this price is crazy!!!! Yet I wonder if I am living in the past and this is a normal price for a home. I hate owing money and it seems so safe owning this house and knowing it is paid for. I have thought of just fixing it up a little nicer and staying one more year, but that is what we said last year and the year before. Of course my husband has a drinking problem and who knows if he will lose his job or have health problems. Right now he is cutting back some and he is saving money on cigarettes by rolling his own and buying tobacco. This park is across the street from a bar, which means no driving and too easy to get too, but if we did not live across the street then he might drive and trouble could happen or the effort to get home from the bar might be so much trouble that he might not go as much. My question is, would you work hard and have a husband working hard and both making pretty good money, would you settle for a 14 x 60 trailer that is 25 years old or would you rent a nice house? I am thinking that my kids need a better place to live, but then I worry about making the payments for rent if something happened with my husband, but I have my youngest in our bedroom and he needs his own room. Buy a bigger used trailer and stay in the park? Work hard and make sure the rent gets paid and my kids get out of a dumpy trailer park? Thank you for any ideas! Oh, and he is at the bar right now. I am trying the kill with kindness thing. No yelling or anything. He says, would it be ok if I went and had some beer and talk to the guys since I have not been in a week? I am not sure if he has missed one day yet from beer though. Drinking at the bar at work and working late, and buying beer for here at the house. A six pack did last 2 days, so big improvement, but weekend coming up.
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Old 05-12-2005, 11:19 PM
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Some concerns are healthy. Some concerns are needless worry. None of us are promised tomorrow, so as for many of the concerns about tomorrow, we shouldn't worry on them.

If you were to sell the trailer you are in, would that give you enough money for a down payment on a house? I know in my state, the only house you would get for under 200,000 would be a one bedroom in a tiny little town in the woods. Prices are sky high all over compaired to 10 years ago.

Interest and taxes paid on a house would give you a tax break from the IRS. Rental doesn't give that and with rental you don't have anything to show for the money you put out, other then the roof over your head at that moment.
You would need look at the facts... will your paychecks cover the added cost? Will other things cost more because of location...ie drive to work, schools. You will increase your tax savings and have something to show for what you pay every month.
Only you can make that choice as only you know what you can aford at the moment. So collect the facts and think it over. You may find there is a house you like and it might not be as expensive as the one you had seen.
The rental choice will always be there no matter what.
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Old 05-12-2005, 11:50 PM
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I work in the mortgage industry and while I live in CA, my "job" is located in Texas. So I see the "high" of home prices here in Orange County, CA and have seen the homes in Orange County, TX and how cheap (by comparison) they are.

Houses cost whatever they cost. It's that simple. Some areas are just crummy. Some are at a premium because of their location. Others just ARE. Here even a small one bedroom condo costs near $400,000. I saw several homes in Texas the last time I was there. The "norm" there was a home with 3000 to 4000 square feet, HUGE lots, island kitchens, 4 bedrooms, mulitple baths ect...for 90,000 to 150,000. I'm always tempted to make the move.

Mobile homes are rarely good investments. That's just a fact. And a rental is just that--you're making someone else's house payment and they're receiving all the tax benefits. A rental simply isn't the same as your OWN home.

Have you looked into federal, state or county buyer assistance programs? They exist on a federal level for sure, in most states and many counties and cities. Unless you have a high income, you can often get help with your downpayment for a "stick" home either thru an outright grant, a dollar matching program, a silent second or for a no down payment loan. Yes, you'd have to jump thru numerous hoops. Yes, you'd need to be both compliant and diligent. But it's certainly possible. If your interested in investigating this, go to a search engine and enter "home buyer assistance" along with your state name...then try your county and perhaps then your city. You can learn a great deal. Don't qualify? Find a mortgage broker you can trust. Ask your friends for recomendations, maybe there's one who's also a member of your church...you get the idea. Someone with some experience under their belts can do many creative things if they get all the facts and can help you determine how much house you can afford and the best ways to finance it. They can walk you thru all the possibilities, stated or not, ARM vs fixed, interest only, there are lots of programs out there! You can also buy a new home and get some breaks and, believe it or not, I know it's possible to buy a "kit" home, and if you're good with tools and motivated (such as a log home package), build it yourself (no contractor) and still get a loan to both build the home and have a mortgage when you're finished! The posibilities are endless.

And you know, it's another reason you might want to become active in al-anon. Not only will you learn a great deal about this familiy illness and the best things for both you and your children, but because members come from all walks of life, you might find info there as well.

Think it over, do some homework and I'll bet you'll find a way. Good Luck!
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Old 05-13-2005, 05:48 AM
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bright-we started out the same way as you. i had to put a lot of my furnishings in storage it was so small. however, the rent was really cheap ($100!) and i saved every dime we could towards the down payment of a fixer-upper. it takes commitment- but my house has quadrupled in value since i bought it- we live in a very small community which has a college - so the values and rates in this area are somewhat unique to that setup- (very high rents) - affordable first home buying houses. keep looking and keep praying and save your money for that down payment!
ps. there are lots of ways to get in a house, but you need to be working at the same place for at least 6 months before you will even qualify for a loan. however, you could work out something with a house being sold by the owner. see, there are so many different ways to get into a house! Good Luck!
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Old 05-13-2005, 08:58 AM
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brightlight
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Thank you for your ideas. Walkingtheline, Texas is a place that I have thought about because his mother lives there and they have a place paid for on a lake. I just do not know if I could stand the heat. I guess I have to decide is it worth living in this cooler and prettier part of the country. It could also be if you buy a $60,000 place in Texas and then pay the utility bill, you will pay more than what it costs in cooler climate and $130,000. Selling the trailer will not bring much money, but it will help with the down. I will keep looking and saving. Something will happen. I may have to take things to storage like you did escape artist. When we moved in 6 years ago we had a baby and one that was 6 and now they are 12 and almost 6 and they have stuff! Thanks again!
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