Real Estate Articles

If you have ever struggled through new home construction, you likely are aware of the slew of unexpected delays that can occur along the way. The four days of solid rain prevents the framers from completing your home’s frame, so the electrician that was ready to work on your project is off to another commitment. Each step has an order, and if one falls out of schedule, so do the rest. It’s like being the last patient of the day in the dentist’s office. Chances are, out of the dozen patients before you, a few were late, and you have to pay the consequences.

Time is money. And in today’s busy world, the cost of time keeps rising. But trends in the housing market are helping solve this problem one factory at a time. Modular homes are the epitome of efficiency from start to finish. And in the end, you can smile all the way to the bank with the time you save.

Modular homes are 80 percent constructed within a factory before it is even shipped to your land site. That means a nice climate controlled work environment 365 days of the year. No rain, no snow, no sub-freezing temperature. Weather delays and scheduling catastrophes are a thing of the past. This is why total construction time for a modular home is less than half the time for a regular site built home.

Did you know some modular home factories build 6 to 8 homes every week? Try accomplishing this in your town. In addition to climate benefits, labor resources are utilized more efficiently. Tools are always in the same place and tasks are performed by factory workers repeatedly increasing efficiency and skill. There are no traveling delays between jobs and the amount of work accomplished per day dramatically increases.

In addition, modular homes allow simultaneous parts of the construction to occur at the same time. In the factory, a frame of one wall is being completed in one area, while insulation and drywall are attached to a second wall in another. Likewise, the foundation is being prepared on your site while your above-ground structure is being built indoors. This allows maximum use of the time in completing each single project.

What? The tile-guy can’t come back until when? This never happens in a modular home. Specialized craftsmen and employees are constantly available daily to perform their tasks so those homes are finished according to schedule. In addition, qualified building inspectors are present to guarantee that the construction will meet building regulations for your job. All of this saves time in the end.

Figures tell the tale. The custom modular home construction from start to finish takes 4 months compared to 14 months for a custom site-built home. And the time saved in labor efficiency and other resources allow the cost of construction to be 20 percent less on average. This does not even account for the time savings in construction loan interest. If you like saving time and money, modular homes are for you. There are few things in today’s world that saves you both and at the same time gives you a superior product.

According to some modular home owners, all homes may one day be factory-built. Is this crazy or what? Possibly not. It just might surprise you the advantages that modular homes bring to the new construction industry. These aren’t the mobile homes of the past. Modular homes are the real deal. They are better built than site built homes, and on average 20 percent less costly.

In 2003, an ideal situation occurred that allowed modular home construction to be put to the test. Michelle Kaufman (of Michelle Kaufmann Designs) decided to build her first home with her husband Kevin Cullen in California just outside of San Francisco. Kevin, being a builder, acted as the general contractor, and the couple began the normal arduous process of designing, permitting and financing there site-built Glidehouse. As is typical, delays and upwardly increasing bids plagued the process, and the couple became progressively frustrated.

Being in architect design, Kaufman began investigating design options with modular technologies. She even began to solicit customers that may want to create an identical Glidehouse to hers, but through modular design and construction. Late in 2003, about 6 months into her own home construction process, she found a client in Washington state that responded to her offer.

What were the results? Well, the total time for design, engineering and construction was 21 months for the site-built home, and only 10 months for the modular home. In other words, despite a 6 month lag, the modular home was finished much sooner. Likewise, there was an extra 10 months for the site-built home in payments for a construction loan, land purchase, and insurance before occupancy could occur. Is there any question that time is money?

But the benefits don’t end there! The overall costs including foundation and land preparation as well as home construction was more than 20 percent less for the modular home. Along the way, there was less waste produced and much less frustration. The two identically designed homes were far from identical in expense and time needed for construction.

But while they look the same and are designed the same, are they both equal in quality? If they are typical of most comparisons, no they are not. The modular home is actually better. Added reinforcements during the factory built process provide greater sustainability and strength to modular homes. Likewise, quality of workmanship on average is better in a factory where the climate is constantly controlled and quality assessments are uniform. Even in post-hurricane situations, modular homes are preferred not only because of their speed of construction, but because of their durability.

So if saving time and money are important to you and having a home with better quality and durability is appealing, you may want to consider a modular home. And if you suspect design limitations are a reason to hesitate, think again. The fact is many of the homes in your own community are modular, and you don’t realize it! Put modular homes to your own test. The results are likely to be pleasing.

Sources:

1. Arieff, Allison. The Proof is in the Prefab. Dwell. November, 2006.
2. http://livemodern.com. Mayer, M. Why Modern? 5/7/2007.
3. www.modularhousing.com. A Guide to Residential Modular Construction. From Factory to Finish. 2004.
4. www.zncustombuilding.com.

Never before have things changed so quickly in the mortgage industry. Interest rates increase and decrease depending on the markets, on an hourly basis. Loan programs are being changed sometimes on a daily basis, others are being discontinued all together.

With this in mind, first time homebuyers who were counting on the first time homebuyer loan programs with 100 % LTV or 0 down must be aware that those programs are no longer offered. Over the past month the MI or better known as mortgage insurance companies have cut back their exposure to these types of loans. They will now only insure loans to a maximum LTV of 97% on first time loans. That means the borrower must have at the very least a down payment of 3%. For example if you were looking to purchase a home for $300,000, you would need a down-payment of $9,000. Now for those of you whose stomaches just turned, please be aware that many of these programs allow for the down payment to come from other sources, such as relatives, employers or charitable organizations.

First time borrowers must also be aware that many of the credit score criteria have changed also. The majority of first time homebuyer programs now require much higher credit scores to be considered for approval. For example, if you wanted to apply for a loan with an LTV of 95,01 to 97% you would have to have a minimum credit score of 680. With a credit score below the 680 watermark, you will have to put down a down-payment of at least 5% or a 95% LTV. If you do fall in the range below 680, the minimum credit score for these programs is 620.

However, do not feel that you have been shut out of the market. FHA loan programs may be the way for many first time homebuyers to go. Although they also require a 3% down payment, they too allow for assistance with the down payment. On top of that, interest rates are usually lower then many of the conforming first time home-buyer programs. Also, many lenders will allow credit scores down to the 580 mark.

All in all there are still programs avaiable for the first time homebuyer. One thing to keep in mind is that it is very important with the many changes going on within the market, that you get pre-approved before looking for a home. That way a loan officer can let you know what your maximum loan amount is, thus giving you an idea what range of properties you can be looking it.

As a Regional VP of Operations and National Director of Operations, Scott has had the opportunity to manage and train Loan Officers, Processors, Underwriters, Closers, Post Closers and Pricing/Secondary Market departments. It is there in the “back room” where one learns the intricacies of the loan process and gains the expertise in processing and working closely with the underwriters who make the final decision on a loan.

Now a Branch Manager, Scott utilizes his 10 years of experience to tailor each and every loan to both his client’s current and future needs. But more importantly. Scott delivers the quality customer service he not only demanded from his former staff, but would expect if he himself were applying for a loan. Both borrowers and Realtors realize quickly the commitment Scott makes to each and every one of his clients.

Ph:707-494-8532 Email:sdovala@ascenthomeloans.com Website: http://www.ascentsantarosahomeloan.com

Article Source: http://EzineArticles.com/?expert=Scott_Dovala