Finally we have cooler temperatures and crisp nights. The leaves are falling everywhere. Have you been out to see some of the colors? The foliage is especially bright with a spectrum of reds, oranges, yellows and golds. It’s amazing to me that this rainbow of colors actually begins in the highest peaks of the Great Smoky Mountains, and changes in elevation as the season progresses. So, I guess it’s possible to follow that display of color all the way down the mountains and into Knoxville if you start at the top. Hmmm…maybe I’ll try that one season.
Even though the changing foliage makes for a beautiful view, and warm, cozy feelings, I have to admit things aren’t so great for the future housing market as we deal with the aftermath of Hurricane Helen. We believe future markets will see a shortage in the supply of materials. Not only that, the availability of builders is expected to decrease as they take on more rebuild projects. Finally, there may be a delay in payments from insurance companies as they process claims from areas hit by destruction.
The bottom line for new construction definitely looks bleak, and this can certainly put many homebuyers in a difficult position.
When the unexpected happens, future homeowners are stuck paying their current housing expenses AND they’re obligated to make the interest payments on their loan for a property that’s not progressing or moving forward. This type of situation can, and most times, will put them in a financial bind.
Now think about their current housing. What if the floods washed it away, or destroyed it beyond repair? They’re left with no place to live. And even when they do secure new housing they probably have to buy tons of necessary items, like furniture, appliances, household goods, and the list goes on. Guess what? They’re using credit to buy these goods. That changes their debt-to-income ratio, sometimes drastically. The bottom line is this: Buyers are forced to requalify for their loan, and most times they can’t. Talk about stress!
The situation might seem hopeless at first, but for buyers who still want to move forward with their plans, despite the halt in building, a look at manufactured housing might just be the ticket. With this type of home, the build times are shorter, labor costs are lower, and there’s less material waste. It offers an accessible and affordable option for homeownership. Even with less material waste and lower labor costs, a manufactured home is still required to meet the strict quality standards of HUD. Many buyers are seriously considering this option because they know they’ll still own and occupy a quality home.
I’ve got one more option for you, and that comes in the form of financing. For buyers considering manufactured housing, I can offer an exceptional opportunity through Stockton Mortgage. It’s called a “one-time close”, but you may also hear it called “one-close”, or even “land-home package”. There are many, even dozens of names for this type of loan, but the main idea is that it’s unique.
Although a “one-time close” option is available at many lenders, Stockton Mortgage does not take the common view or practice with this type of loan. When buyers work with me, then Stockton Mortgage allows them to combine the purchase price of their home with the interest payments, which means they aren’t required to pay monthly interest during the construction phase of their home. This is a superior option because most lenders require the buyer to continue making their interest payments, and that means they’re having to come up with two payments instead of one – their current housing expenses AND the interest payment on their construction loan.
Let’s take a look at an example “One-time Close:
- The purchase price of a home is $150,000
- Interest on the loan is $10,000
- Interest is stacked on top of the loan and now the purchase price is $160,000.
- Buyers make monthly payments on $160,000 when the transaction closes.
This structure provides significant relief to buyers. They no longer have to juggle living expenses, because they only pay for their current expenses while they wait for completion of their new home. That’s truly a relief!
One more thing about the “one-time close”: With Stockton Mortgage buyers do not need to requalify when construction ends and permanent financing begins, which is what many other lenders would require. Let me say that again. Buyers do not need to requalify, even when debt-to-income ratios change. Buyers can move forward with the peace of mind that their financing will remain intact no matter the situation.
That’s what is so unique about Stockton Mortgage. Not only do we offer one-time close, we also offer 100% financing for single-wide and double-wide manufactured homes. We‘re one of the few lenders who do. We also offer FHA, USDA, VA, and Conventional loans, making it easier for buyers to secure financing should they decide on manufactured housing. By the way, I think it’s worth noting that Stockton Mortgage was named the USDA 2024 Single-Close Construction Champion. That’s an honor!
After all considerations, manufactured housing provides a sensible and viable solution; especially in the aftermath of Helene. And pairing it with a unique financing option like the one-time close with Stockton Mortgage, buyers can move forward with their plans knowing they’ll experience less pressure and stress. They’ll be able to look forward to making new memories in their new home.
If this sounds like a good option for your client then please send them my way. I can help them move closer to securing their new home. Contact me at (865) 745-5626.
With less stress and less pressure, here’s to financing that works!
P.S. I can help home buyers take a practical path forward in the aftermath of Hurricane Helene. I’m ready with financing options that will help them secure the best loan possible. Send them my way. The number is (865) 745-5626.
John Fleming, Jr.
Mortgage Banker
Stockton Mortgage with The Price Team
Loan Originator | NMLS 1850409
(865) 745-5626
john@letsmortgage.com
Food For Thought:
Many people are searching for ways to donate to the rebuilding of communities after the devastation of Hurricane Helene. There are many places, but the challenge is finding a reputable and legitimate charity. I have found these links lead to companies that rate those organizations. Two of my favorites are:
If you’ve got others, then drop me a line because I would also like to know!
Happenings:
If you’re a history buff then you’ll enjoy The Fort Dickerson Living History Weekend located at Fort Dickerson Park in Knoxville. Soldiers dressed in blue and gray will be at the park November 9th and 10th. They’re ready to commemorate and reenact the Battle of Knoxville that took place in November of 1863. Go out and experience some living history. They’ve got a lot…like living history campsites and rifle firing demonstrations. Maybe you’d like to dress up and join in the fun. Go out and enjoy some of Knoxville’s history. I’m pretty sure the weather will still be perfect, and that’s something to be thankful for. Speaking of thanks, I’m wishing all of you a happy and blessed Thanksgiving.