The Votes are in… Customers Top Picks in 2023!

February 1, 2023By American HomestarFeatured, Retail

Oak Creek Homes offers 100+ floorplans to choose from… so it’s hard sometimes to single out a favorite. Each singlewide or doublewide floorplan we offer has a unique set of AFFORDABLE LUXURY STANDARD FEATURES… all of which you can not find with a typical cookie-cutter site-built home for the same price! So, we picked a few of our most popular manufactured and modular homes that showcase popular affordable luxury standard features… and had customers vote which they liked best! So, get ready to Fall in Love with 𝓐𝓯𝓯𝓸𝓻𝓭𝓪𝓫𝓵𝓮 𝓛𝓾𝔁𝓾𝓻𝔂 (if you haven’t already)! The winners are….

Voted Best Home Series by Customers

Smart Cottage voted best Home Series by customers in 2023

Customers voted the Smart Cottage BEST HOME SERIES in 2023! The Smart Cottage beat out the Silver Spur and Magnificent 7 Home Lines to win top honors. The Smart Cottage comes with a choice of 15 floorplans, 1-3 bedrooms, 1-2 bathrooms, and 1 porch or 2. We started with a tiny home idea and realized there was a need for a bigger, better design. Thus, the Smart Cottage was born. It’s smarter in design, function, energy efficiency, and pricing than a typical tiny home too! Plus, it has a unique exterior design. Its hallmark is tall banks of windows that allow for lots of natural light.

Smart Cottage homes are a great choice for a lake, beach, or ranch property, downsizing, a backyard guest or parents’ house, a farmhouse, or a millennial modern home. They come in many sizes and floor plans. Just like most of our homes, Smart Cottages can be customized and finished the way you want them! Enjoy 𝓐𝓯𝓯𝓸𝓻𝓭𝓪𝓫𝓵𝓮 𝓛𝓾𝔁𝓾𝓻𝔂 features like transom windows, vaulted ceilings, ceramic tile kitchen backsplash, an optional large sharing island, plenty of cabinets, and a walk-in tile shower.

Find your very own Smart Cottage, plus step inside our Ft. Worth Factory to see how Smart Cottages are built here.

Voted Best Kitchen by Customers

Her “pearly” white will make you smile! And so will her kitchen. Customers voted the Pearl BEST KITCHEN in 2023! This modern 3-4 bedroom, 2-2.5 bathroom farmhouse beat out the Haven and the Beaumont with its bright and airy design. The Pearl’s unique mix of 𝓐𝓯𝓯𝓸𝓻𝓭𝓪𝓫𝓵𝓮 𝓛𝓾𝔁𝓾𝓻𝔂 standard feature ingredients, so to speak, include… a trey wood ceiling with beams, a sharing island to help prep and prepare meals, a farmhouse sink, a range hood, and stainless steel appliances, plus a butler’s pantry! The recipe gets even better when your favorite meal can be served on Pearl’s wrap-around front porch. Be sure and check out every room of the Pearl here.

Voted Best Bathroom by Customers

Voted Best Bathroom by customers in 2023! Mobile Home Affordable Luxury

Customers voted, and the Opal soaked up the honor for BEST BATHROOM in 2023! The Opal’s bathroom design flushed away its competition, the Magnolia and the Cheyenne, with its 𝓐𝓯𝓯𝓸𝓻𝓭𝓪𝓫𝓵𝓮 𝓵𝓾𝔁𝓾𝓻𝔂 features that include square sinks, designer faucets, a separate stand-alone soaking tub, plus huge walk-in shower! Did we mention that it connects to a huge walk-in closet? See more pictures of the Opal here.

Voted Best Open Space by Customers

Voted Best Open Space Design by customers in 2023! Mobile Home Affordable Luxury

Customers voted, and the Boerne took home top honors for BEST OPEN SPACE! The Boerne knocked out its competition, the Javelin and the Gold Spur, with its cozy and sophisticated design of 𝓐𝓯𝓯𝓸𝓻𝓭𝓪𝓫𝓵𝓮 𝓛𝓾𝔁𝓾𝓻𝔂 features which include a recessed ceiling and clear view from the living room to kitchen to eat-in dining area! The open space is just right for entertaining family and friends or for just sitting and reading a book in front of the LED fireplace on a cozy night. See more pictures of the Boerne here.

Voted Best Beverage Bar by Customers

Voted Best Beverage Bar by customers in 2023! Mobile Home Affordable Luxury

Here’s what’s brewing next… Customers voted, and the Sofia beat out the Bandera and the Bella for BEST BEVERAGE BAR. Sofia’s beverage bar offers not only a sleek and modern design but sophistication! This beverage bar is the perfect wake-up call for love, laughter, and coffee – like the sign says ;). It’s also the perfect way to get your day started! Drink in 𝓐𝓯𝓯𝓸𝓻𝓭𝓪𝓫𝓵𝓮 𝓛𝓾𝔁𝓾𝓻𝔂… because you can also use this beverage bar for game night to showcase your favorite drinks.

Contact Us

Have questions or want more information? Our friendly team members would be happy to talk with you. Feel free to contact us to schedule a visit or tour as well.

Contact us

Additional Educational Resources

Manufactured Home Builder Oak Creek Homes has been building affordable luxury heavy homes for over 50 years! Find your nearest Oak Creek Home Center.

The post The Votes are in… Customers Top Picks in 2023! appeared first on Oak Creek Homes.

Mobile, Manufactured, & Modular Home Buying Process: A Complete Guide

November 16, 2022By American HomestarFeatured, Retail

The Buying Process for Mobile, Manufactured, & Modular Homes

mobile home buying process complete guide

Whether you’re looking to buy a mobile home, manufactured home, or modular home right now or later down the road, we want to help you understand what the buying process looks like.

These types of homes are great for those of you who are budget-minded, looking for a starter home, downsizing, needing a ranch or lake property, or even a guest house. When it comes to buying a mobile, manufactured, or modular home, the process is a little different from buying a previously constructed single-family home or townhome. In this guide we will take a look at what this home buying process looks like by breaking it down into three parts:

  1. Five Steps you Need to Complete in the Home Buying Process
  2. Financing Considerations
  3. Home Site Selection and Home Site Preparation

Five Steps you Need to Complete in the Home Buying Process

Determine your Family’s Needs

Have an idea of some general features you need. How many bedrooms and bathrooms?  Most mobile homes now all have at least 2 full bathrooms.  Do you need a living room and family room or just a larger “great room”?  What would you consider as being the key area for you in your new home?  Are there special needs or considerations such as furniture size, bedroom size, special needs, etc.?

Determine a Budget

Typically lenders use a budget calculator to determine what your payment capacity is. You can find several programs online that will help you do that.  A general rule of thumb is that your monthly payment will be about .8 -1% of the amount you borrow. The lenders will take into account your current debts to determine what your manufactured house payment limits are.

Choose a Builder

There are many different builders that produce a wide range of products. Some focus on building as inexpensively as possible while others concentrate on a combination of affordability and quality construction.  It’s important that you have defined what your priorities are before visiting a mobile home dealership. What is on your top 5 list of features you are looking for in a home? Does the builder reflect the same construction priorities that you have identified? When you visit the dealership do you experience someone who wants to help you find your home or someone who just wants to earn a commission? Did they listen to you? What are their google reviews like? What have others experienced who have gone before you?

Find your Dream Home

Once you’ve developed your “shopping list” it’s time to have fun. When you visit your manufactured home dealership, share with them the things you are looking for.  Be as detailed as possible. That will help your home consultant narrow down the search and help you find your new home sooner.  Don’t hesitate to ask questions. Your home consultant should be able to help guide you through the process in a friendly, informative, and professional manner.  Don’t be afraid to share information. You can’t go to the doctor and have him guess what your needs are.

Design your New Home

The design of manufactured and modular homes has come a long way from the long, dark trailers of yesteryear. Manufactured home exteriors can match any style, from traditional ranch homes to cozy log cabins to chalets to cool coastal retreats. Inside – depending upon the model of your home…. You can choose paint colors, cabinet colors, and kitchen countertops. You might be able to customize some additional features as well… like adding stainless steel appliances or a farm sink and gooseneck faucet. Check out this previous post to see more on how you can customize a manufactured or modular home.

Financing Considerations

Financing a manufactured home, mobile home, or modular home is much different than financing a residential home. Here are some critical topics that you’ll need to consider when applying for a new home loan.

Credit Scores

One of the two most common questions we get is “What kind of credit score do I need to buy a mobile, manufactured, or modular home?” Great question. Most lenders have minimum scores that they are looking for. There are lenders who can work with bruised credit that is below 600 while others are looking for scores above 620 to 640. Sometimes lower credit scores can be overcome by increasing the amount of the down payment. Learn more about credit scores in a previous post here. When you talk with your home consultant it will be helpful to know where you stand in terms of credit score.

Note: Keep in mind our home consultants are not Licensed Mortgage Loan Originators. But part of their job is to help assemble the information that you need to make the application and then help the lender in collecting any other documents they may request to evaluate the application.

Down Payments

Down payments for mobile, manufactured and modular homes will depend on the type of loan and your overall credit profile. There are zero-down programs such as VA, USDA, and even a few available from non-government-backed sources. Typically, you should prepare for a minimum of 5% to start with. The down payment total won’t be called for until closing, so you’ll have some time to save a bit more.

There are Two General Types of Home Loans

Government-backed loans – FHA, VA, USDA

Non-Conforming loans – basically function similarly to private banks

  • Land/home – use of land in the transaction
  • Home only or Chattel loans – only consider the valuation of the home as collateral.

Government-insured loans, like HUD-backed FHA loans and VA loans, are financing options for manufactured homes or modular homes. Banks and home manufacturers offer more traditional chattel loans and mortgages to those of you at home shopping as well.

Using Land vs Home-Only Transactions

Your financing considerations will vary depending on your land situation. Do you own land, or do you need land?

You Own Land

Many people use land as a down payment for mobile, manufactured, and modular homes. Doing this can help secure a traditional mortgage and lower interest rates.  In fact, oftentimes lenders can use the land equity to offset cash down payment requirements. Oak Creek Homes has done several loans with Zero Cash Down when the land equity and credit were acceptable to the lenders.

You Need Land

If you don’t have land, most dealerships can help you in locating a suitable homesite. Are you looking for private land or would it be more beneficial for you to consider a leased land option? Depending on the type of loan package, you may be able to include the land purchase into your home package (for more information see our “Should I find my land before buying” post). 

Using leased land for your new home is a viable consideration. Most communities provide favorable sites with amenities that may include swimming pools, playgrounds, yard maintenance, garbage service, and city sewer services.

You can also do “home only” loans or chattel. While these loans typically have shorter loan lengths, and a bit higher interest rates, they can be a good choice because they also have lower closing costs. They keep the land “out of the deal” and only involve the land as collateral.

Securing Financing

Make a “good faith deposit” – Statistics show that presenting a good faith deposit increases the likelihood of getting favorable approval. The deposit shows your good intentions to make the purchase and also demonstrates to the lender that you have part of, if not all of the down payment on hand. Actual down payment requirements are determined by the lender based on your credit profile and the type of loan you are trying for. There are some “zero down” loans available but it’s still good to do a deposit to show good faith. That deposit can either be refunded at closing or can be applied to the loan at closing, whichever you choose. Check with your manufactured home dealership and make sure that the deposit is 100% refundable if the mobile home loan is not approved or if you change your mind.

Provide income – When you fill out the application provide accurate information on your income, detailing all sources. The lenders are looking for “pre-tax” figures.  If you are paid overtime you will list that amount separately from your “regular” pay.  Usually, to be counted, overtime must have been earned for at least 2 years prior.

Supply all documentation needed – Documentation is KING: Lenders will want you to provide different documentation. Expect to provide your last 2 years of w2s, 2 months’ worth of pay stubs, 3-months’ worth of bank records, copies of SSI awards letters or pensions, and a copy of the deed or land lease.  Additionally, the bank may ask you to provide other documents as well. While this may seem burdensome, it is an essential part of buying a home.

Shop lenders – Credit scores are usually the ones affected once you make multiple applications within a 30-day period. I usually suggest that you approach at least 2 different lenders so you can get a comparison of offers. Things to consider when you review your lender response are terms of the home loan, interest rate, and fees. Sometimes it makes more sense to look at loan offers with lower loan fees even if the rate is higher. See a full list of lenders we work with here.

Determine your payment – I know a common question, “What will my mortgage payment be?” You can use a general rule of thumb when estimating what your payment will be. Your mortgage payment amount will be a result of 3 factors.

  • Credit scores
  • Amount of down payment
  • Term on the loan – how long is the loan for?

Here is a calculator that can help in determining your payment

Calculate Payments

Again, be mentally prepared to provide additional documentation that the lender may require. Understand that your manufactured home consultant is not the bank, but they are there to help expedite the process. 

Home Site Selection and Home Site Preparation

Let’s review what considerations come into play during the home site selection and home site preparation processes for your mobile, manufactured, or modular home.

Site Selection for Mobile, Manufactured & Modular Homes

When considering a home site location be sure to check on any local zoning or deed restrictions. Some home sites that are within city limits may require modular construction standards to meet city code for single-family dwellings. Oak Creek builds a wide range of modular home plans that meet local construction codes for single-family dwellings.

Site Preparation for Mobile, Manufactured & Modular Homes

Once you’ve found your land, here are some items you need to consider while preparing your mobile home site.

Note the lay of the land. When you are doing site prep for a mobile home, you’ll want to take note of any obvious indications of where the drainage may occur. You do not want to put your home in a low-lying area that could allow for water to accumulate under the home.

Note any obstacles that may make delivery more complicated. We suggest that you walk the property and get several different vantage points.  Are there any trees or other natural features that may affect the placement of the home?

Check on “set back” requirements. Knowing how far from the property lines you have to place your mobile home can avoid costly mistakes.

Determine what utilities need to be installed. Does your selected home site already have water, sewer/septic, and electrical available? If your selected home site does not have all of these available – does your modular home dealer provide these general contracting services in addition to the cost of the home? Or will you have to secure those services outside of your purchase agreement? Be sure that the bids are from contractors who have the proper licenses and approvals to do the work in the area where you are putting your home.

Will you need a foundation? Some lenders do not require a concrete foundation as part of the home package while others do. Modular houses will always require an engineer designed and inspected foundation.  It’s recommended on all of our double-wide section homes. In the State of Texas, any new manufactured home that is wider than 16’ and going on private property requires a “home pad” to be installed to help insure proper water drainage.

Have a home site inspection. It’s a good idea to have your mobile home dealer do a physical site inspection at your proposed location to help identify any setup or home site preparation issues beforehand.

Check the dealership’s policy for set-up inspections. Here at Oak Creek Homes, we have decided to use an independent 3rd party engineering firm to inspect all installations of multi-section homes.  Each installation must pass a detailed 47-point inspection. What does your dealer do?

Choose skirting and underpinning, steps, and decks. What type of skirting will be put on your home? You have a wide range of choices including vinyl, metal, hardboard, masonry, or other manufactured products. Some lenders have different requirements so be sure to check with your modular home dealer about what you are getting.

Summary

We hope this guide has helped to educate you on the home buying process for mobile, manufactured, and modular homes.

Still Have Questions?

Our friendly team members would be happy to talk with you. Feel free to contact us to schedule a visit or tour.

Contact us

Additional Educational Resources

Manufactured Home Builder Oak Creek Homes has been building affordable luxury heavy homes for over 50 years! Find your nearest Oak Creek Home Center.

The post Mobile, Manufactured, & Modular Home Buying Process: A Complete Guide appeared first on Oak Creek Homes.

Mobile, Manufactured, & Modular Home Buying Process: A Complete Guide

November 16, 2022By American HomestarFeatured, Retail

The Buying Process for Mobile, Manufactured, & Modular Homes

mobile home buying process complete guide

Whether you’re looking to buy a mobile home, manufactured home, or modular home right now or later down the road, we want to help you understand what the buying process looks like.

These types of homes are great for those of you who are budget-minded, looking for a starter home, downsizing, needing a ranch or lake property, or even a guest house. When it comes to buying a mobile, manufactured, or modular home, the process is a little different from buying a previously constructed single-family home or townhome. In this guide we will take a look at what this home buying process looks like by breaking it down into three parts:

  1. Five Steps you Need to Complete in the Home Buying Process
  2. Financing Considerations
  3. Home Site Selection and Home Site Preparation

Five Steps you Need to Complete in the Home Buying Process

Determine your Family’s Needs

Have an idea of some general features you need. How many bedrooms and bathrooms?  Most mobile homes now all have at least 2 full bathrooms.  Do you need a living room and family room or just a larger “great room”?  What would you consider as being the key area for you in your new home?  Are there special needs or considerations such as furniture size, bedroom size, special needs, etc.?

Determine a Budget

Typically lenders use a budget calculator to determine what your payment capacity is. You can find several programs online that will help you do that.  A general rule of thumb is that your monthly payment will be about .8 -1% of the amount you borrow. The lenders will take into account your current debts to determine what your manufactured house payment limits are.

Choose a Builder

There are many different builders that produce a wide range of products. Some focus on building as inexpensively as possible while others concentrate on a combination of affordability and quality construction.  It’s important that you have defined what your priorities are before visiting a mobile home dealership. What is on your top 5 list of features you are looking for in a home? Does the builder reflect the same construction priorities that you have identified? When you visit the dealership do you experience someone who wants to help you find your home or someone who just wants to earn a commission? Did they listen to you? What are their google reviews like? What have others experienced who have gone before you?

Find your Dream Home

Once you’ve developed your “shopping list” it’s time to have fun. When you visit your manufactured home dealership, share with them the things you are looking for.  Be as detailed as possible. That will help your home consultant narrow down the search and help you find your new home sooner.  Don’t hesitate to ask questions. Your home consultant should be able to help guide you through the process in a friendly, informative, and professional manner.  Don’t be afraid to share information. You can’t go to the doctor and have him guess what your needs are.

Design your New Home

The design of manufactured and modular homes has come a long way from the long, dark trailers of yesteryear. Manufactured home exteriors can match any style, from traditional ranch homes to cozy log cabins to chalets to cool coastal retreats. Inside – depending upon the model of your home…. You can choose paint colors, cabinet colors, and kitchen countertops. You might be able to customize some additional features as well… like adding stainless steel appliances or a farm sink and gooseneck faucet. Check out this previous post to see more on how you can customize a manufactured or modular home.

Financing Considerations

Financing a manufactured home, mobile home, or modular home is much different than financing a residential home. Here are some critical topics that you’ll need to consider when applying for a new home loan.

Credit Scores

One of the two most common questions we get is “What kind of credit score do I need to buy a mobile, manufactured, or modular home?” Great question. Most lenders have minimum scores that they are looking for. There are lenders who can work with bruised credit that is below 600 while others are looking for scores above 620 to 640. Sometimes lower credit scores can be overcome by increasing the amount of the down payment. Learn more about credit scores in a previous post here. When you talk with your home consultant it will be helpful to know where you stand in terms of credit score.

Note: Keep in mind our home consultants are not Licensed Mortgage Loan Originators. But part of their job is to help assemble the information that you need to make the application and then help the lender in collecting any other documents they may request to evaluate the application.

Down Payments

Down payments for mobile, manufactured and modular homes will depend on the type of loan and your overall credit profile. There are zero-down programs such as VA, USDA, and even a few available from non-government-backed sources. Typically, you should prepare for a minimum of 5% to start with. The down payment total won’t be called for until closing, so you’ll have some time to save a bit more.

There are Two General Types of Home Loans

Government-backed loans – FHA, VA, USDA

Non-Conforming loans – basically function similarly to private banks

  • Land/home – use of land in the transaction
  • Home only or Chattel loans – only consider the valuation of the home as collateral.

Government-insured loans, like HUD-backed FHA loans and VA loans, are financing options for manufactured homes or modular homes. Banks and home manufacturers offer more traditional chattel loans and mortgages to those of you at home shopping as well.

Using Land vs Home-Only Transactions

Your financing considerations will vary depending on your land situation. Do you own land, or do you need land?

You Own Land

Many people use land as a down payment for mobile, manufactured, and modular homes. Doing this can help secure a traditional mortgage and lower interest rates.  In fact, oftentimes lenders can use the land equity to offset cash down payment requirements. Oak Creek Homes has done several loans with Zero Cash Down when the land equity and credit were acceptable to the lenders.

You Need Land

If you don’t have land, most dealerships can help you in locating a suitable homesite. Are you looking for private land or would it be more beneficial for you to consider a leased land option? Depending on the type of loan package, you may be able to include the land purchase into your home package (for more information see our “Should I find my land before buying” post). 

Using leased land for your new home is a viable consideration. Most communities provide favorable sites with amenities that may include swimming pools, playgrounds, yard maintenance, garbage service, and city sewer services.

You can also do “home only” loans or chattel. While these loans typically have shorter loan lengths, and a bit higher interest rates, they can be a good choice because they also have lower closing costs. They keep the land “out of the deal” and only involve the land as collateral.

Securing Financing

Make a “good faith deposit” – Statistics show that presenting a good faith deposit increases the likelihood of getting favorable approval. The deposit shows your good intentions to make the purchase and also demonstrates to the lender that you have part of, if not all of the down payment on hand. Actual down payment requirements are determined by the lender based on your credit profile and the type of loan you are trying for. There are some “zero down” loans available but it’s still good to do a deposit to show good faith. That deposit can either be refunded at closing or can be applied to the loan at closing, whichever you choose. Check with your manufactured home dealership and make sure that the deposit is 100% refundable if the mobile home loan is not approved or if you change your mind.

Provide income – When you fill out the application provide accurate information on your income, detailing all sources. The lenders are looking for “pre-tax” figures.  If you are paid overtime you will list that amount separately from your “regular” pay.  Usually, to be counted, overtime must have been earned for at least 2 years prior.

Supply all documentation needed – Documentation is KING: Lenders will want you to provide different documentation. Expect to provide your last 2 years of w2s, 2 months’ worth of pay stubs, 3-months’ worth of bank records, copies of SSI awards letters or pensions, and a copy of the deed or land lease.  Additionally, the bank may ask you to provide other documents as well. While this may seem burdensome, it is an essential part of buying a home.

Shop lenders – Credit scores are usually the ones affected once you make multiple applications within a 30-day period. I usually suggest that you approach at least 2 different lenders so you can get a comparison of offers. Things to consider when you review your lender response are terms of the home loan, interest rate, and fees. Sometimes it makes more sense to look at loan offers with lower loan fees even if the rate is higher. See a full list of lenders we work with here.

Determine your payment – I know a common question, “What will my mortgage payment be?” You can use a general rule of thumb when estimating what your payment will be. Your mortgage payment amount will be a result of 3 factors.

  • Credit scores
  • Amount of down payment
  • Term on the loan – how long is the loan for?

Here is a calculator that can help in determining your payment

Calculate Payments

Again, be mentally prepared to provide additional documentation that the lender may require. Understand that your manufactured home consultant is not the bank, but they are there to help expedite the process. 

Home Site Selection and Home Site Preparation

Let’s review what considerations come into play during the home site selection and home site preparation processes for your mobile, manufactured, or modular home.

Site Selection for Mobile, Manufactured & Modular Homes

When considering a home site location be sure to check on any local zoning or deed restrictions. Some home sites that are within city limits may require modular construction standards to meet city code for single-family dwellings. Oak Creek builds a wide range of modular home plans that meet local construction codes for single-family dwellings.

Site Preparation for Mobile, Manufactured & Modular Homes

Once you’ve found your land, here are some items you need to consider while preparing your mobile home site.

Note the lay of the land. When you are doing site prep for a mobile home, you’ll want to take note of any obvious indications of where the drainage may occur. You do not want to put your home in a low-lying area that could allow for water to accumulate under the home.

Note any obstacles that may make delivery more complicated. We suggest that you walk the property and get several different vantage points.  Are there any trees or other natural features that may affect the placement of the home?

Check on “set back” requirements. Knowing how far from the property lines you have to place your mobile home can avoid costly mistakes.

Determine what utilities need to be installed. Does your selected home site already have water, sewer/septic, and electrical available? If your selected home site does not have all of these available – does your modular home dealer provide these general contracting services in addition to the cost of the home? Or will you have to secure those services outside of your purchase agreement? Be sure that the bids are from contractors who have the proper licenses and approvals to do the work in the area where you are putting your home.

Will you need a foundation? Some lenders do not require a concrete foundation as part of the home package while others do. Modular houses will always require an engineer designed and inspected foundation.  It’s recommended on all of our double-wide section homes. In the State of Texas, any new manufactured home that is wider than 16’ and going on private property requires a “home pad” to be installed to help insure proper water drainage.

Have a home site inspection. It’s a good idea to have your mobile home dealer do a physical site inspection at your proposed location to help identify any setup or home site preparation issues beforehand.

Check the dealership’s policy for set-up inspections. Here at Oak Creek Homes, we have decided to use an independent 3rd party engineering firm to inspect all installations of multi-section homes.  Each installation must pass a detailed 47-point inspection. What does your dealer do?

Choose skirting and underpinning, steps, and decks. What type of skirting will be put on your home? You have a wide range of choices including vinyl, metal, hardboard, masonry, or other manufactured products. Some lenders have different requirements so be sure to check with your modular home dealer about what you are getting.

Summary

We hope this guide has helped to educate you on the home buying process for mobile, manufactured, and modular homes.

Still Have Questions?

Our friendly team members would be happy to talk with you. Feel free to contact us to schedule a visit or tour.

Contact us

Additional Educational Resources

Manufactured Home Builder Oak Creek Homes has been building affordable luxury heavy homes for over 50 years! Find your nearest Oak Creek Home Center.

The post Mobile, Manufactured, & Modular Home Buying Process: A Complete Guide appeared first on Oak Creek Homes.

Does Buying a Manufactured Home Make Sense for You?

November 15, 2022By American HomestarFeatured, Retail

Should You Consider Buying a Manufactured Home in 2022?

Are you feeling depressed or frustrated and like you are being squeezed out of the onsite-built housing market? Perhaps a manufactured or modular home might be your best option for affordable housing. When visualizing a manufactured home, what do you see? Hopefully, something luxurious because that is exactly what manufactured and modular homes have become over the course of time. Need a refresher on the difference between the two? Check out this previous post to learn more about what each type of home can offer. Some may argue that manufactured and modular homes are not only more visually appealing, but also a smarter choice for home ownership in today’s economy. Here are some reasons why it might make sense for you to buy a manufactured home.

Financial Considerations & Affordability

Buying a manufactured home or a modular home is a great option for someone looking to receive everything they want in a home for a fraction of the cost. The average cost of a manufactured home is substantially lower than a traditional site-built home. This could be a huge relief for many as prices continue to spike in real estate.

should I buy a manufactured home? should I buy a manufactured home?

It’s not only the build that costs less – but there are also other factors that work in favor of your pockets. For instance, the energy efficiency that comes with manufactured and modular homes.

Energy Efficiency

From air sealing and insulation to installing the latest HVAC technology, prefab homes can incorporate many features that will keep your electricity bill at a reasonable cost. Other features like LED lighting, Energy Star appliances, and energy-efficient windows can also impact month-to-month energy savings.

Resale Value

In addition to saving money, manufactured homes can also be a way to make money through value appreciation. There is a common misconception that manufactured homes don’t hold value and depreciate over time. The Manufactured Housing Institute debunks this idea stating that manufactured homes appreciate at the same market rate as other homes in a neighborhood. It is important to consider the location, age of the home, and overall condition; All of which impact the resale value. Thus, manufactured homes can hold high resale values.

Maintenance

One of the biggest headaches of being a homeowner is the maintenance cost. Unlike renting an apartment or any other space, home ownership leaves you responsible for all repairs. This can really hit the bank account hard depending on the amount of damage to a property. While it is important to maintain any home you live in, manufactured homes tend to be less expensive to maintain than traditional homes. This means there’s less to budget for each month, which saves you money each month!

should i buy a manufactured home?Building Cost

According to Forbes, due to the lower cost of materials and other determinants, manufactured homes are priced between 10%-35% less per square foot than a traditional home. The difference in cost without a sacrifice of quality has many people interested in investing in a prefab home, custom-made to their wants and needs. Manufactured and modular homes have evolved into a comparable option for many families and will continue to grow more popular as people discover the many benefits that come with them, which include affordable luxury standard features that you can’t get for the same price as a site-built home. Affordable Luxury features can include beverage bars, huge tile walk-in showers, separate soaking tubs, tall banks of windows, porches, and built-in desk/office spaces.

Personal Mortgage Insurance

In addition, when you finance a manufactured home you avoid the personal mortgage insurance (PMI) required from site-built home financing if you do not put 20% down. This alone can take save you hundreds of dollars each month. Here are a few other reasons to consider when deciding whether purchasing a manufactured or modular home might be right for you:

Durability

The structural quality and durability of a home are important factors to consider. Natural disasters are becoming more aggressive and common. Depending upon the area where your home will be, safety may be top of mind. While you may have seen images of trailer homes, mobile homes, and manufactured homes torn apart or destroyed by hurricanes or tornados, many manufactured home builders go to great strides to help prevent this. For example, Oak Creek Homes not only builds a heavy home but makes sure it is installed and secured with a 47-point inspection (on all 18-foot and wider homes). This means a manufactured home is builtstrong and secured to its foundation, which keeps it from sliding off or rolling over. In addition, hardboard siding is used instead of vinyl. Hardboard siding stands up to the elements, resisting damage from wind, rain, freezing temperatures, and hail. This gives a manufactured or modular home years of protection and low maintenance. The HUD code regulations that are required for each and every home also ensure safety and durability for even the strongest storms and disasters. Hear from manufactured homeowners whose homes withstood category 4 hurricanes here.

Versatility

What makes owning a manufactured home more versatile than a traditional site-built home?  Most manufactured home builders allow customers to pick out various design elements of their homes. These can include exterior materials, like galvanized metal accents, metal roofs versus shingles, and body and trim paint colors. On the inside of the home, this can include colors for walls, cabinets, tile, backsplash, and flooring. Manufactured homes are utilizing some of the most popular design and decor choices so that you can customize the perfect place. You can take your home to the next level with the many options offered. Having this amount of power over your journey to homeownership is not only empowering but also it is also to first step to truly getting connected to your home and ensuring that every inch is built to your satisfaction.

Construction Process

When you’re anxious to purchase something, you probably are not willing to wait 2 years to receive it. This can be the case for many site-built homes today as material supply shortages continue to infiltrate the market. Manufactured homes, like the Oak Creek Homes specifically, receive many of their materials right here in the U.S. making the home-building process quicker and easier. Homes are built in a factory in as little as 6-8 weeks and then, installed on-site.

Summary

In short, it is important to explore the various ways to achieve home ownership and be open to new and improved options. Manufactured and modular homes have made a lot of progress over the years and have proved to be a great alternative to site-built homes, especially in an ever-changing real estate market. You can count on modern manufactured homes to be both affordable and sustainable despite the increase in prices we continue to see going into 2023. If you are curious about all that a manufactured home has to offer, you can visit www.oakcreekhomes.com to browse the many different designs and floorplans you are sure to fall in love with.

Contact us to Schedule a Visit or Tour

Ready to schedule a tour? Or have questions? Let us know, we’d be happy to talk with you. We can also help with financing and finding land for your custom-manufactured home. Land and home packages are available.

Other Educational Resources

Just starting the manufactured home buying journey? Download these handy checklists. They’ll start you off on the right path.

You can buy any of our top-selling single-wide or double-wide homes at your nearest Oak Creek Home Center. We deliver to Texas, Oklahoma, Louisiana, and parts of New Mexico. Manufactured home builder Oak Creek Homes has been building manufactured houses and modular homes for over 50 years.

 

 

The post Does Buying a Manufactured Home Make Sense for You? appeared first on Oak Creek Homes.

Does Buying a Manufactured Home Make Sense for You?

November 15, 2022By American HomestarFeatured, Retail

Should You Consider Buying a Manufactured Home in 2023?

Are you feeling depressed or frustrated and like you are being squeezed out of the onsite-built housing market? Perhaps a manufactured or modular home might be your best option for affordable housing. When visualizing a manufactured home, what do you see? Hopefully, something luxurious because that is exactly what manufactured and modular homes have become over the course of time. Need a refresher on the difference between the two? Check out this previous post to learn more about what each type of home can offer. Some may argue that manufactured and modular homes are not only more visually appealing, but also a smarter choice for home ownership in today’s economy. Here are some reasons why it might make sense for you to buy a manufactured home.

Financial Considerations & Affordability

Buying a manufactured home or a modular home is a great option for someone looking to receive everything they want in a home for a fraction of the cost. The average cost of a manufactured home is substantially lower than a traditional site-built home. This could be a huge relief for many as prices continue to spike in real estate.

should I buy a manufactured home? should I buy a manufactured home?

It’s not only the build that costs less – but there are also other factors that work in favor of your pockets. For instance, the energy efficiency that comes with manufactured and modular homes.

Energy Efficiency

From air sealing and insulation to installing the latest HVAC technology, prefab homes can incorporate many features that will keep your electricity bill at a reasonable cost. Other features like LED lighting, Energy Star appliances, and energy-efficient windows can also impact month-to-month energy savings.

Resale Value

In addition to saving money, manufactured homes can also be a way to make money through value appreciation. There is a common misconception that manufactured homes don’t hold value and depreciate over time. The Manufactured Housing Institute debunks this idea stating that manufactured homes appreciate at the same market rate as other homes in a neighborhood. It is important to consider the location, age of the home, and overall condition; All of which impact the resale value. Thus, manufactured homes can hold high resale values.

Maintenance

One of the biggest headaches of being a homeowner is the maintenance cost. Unlike renting an apartment or any other space, home ownership leaves you responsible for all repairs. This can really hit the bank account hard depending on the amount of damage to a property. While it is important to maintain any home you live in, manufactured homes tend to be less expensive to maintain than traditional homes. This means there’s less to budget for each month, which saves you money each month!

should i buy a manufactured home?Building Cost

According to Forbes, due to the lower cost of materials and other determinants, manufactured homes are priced between 10%-35% less per square foot than a traditional home. The difference in cost without a sacrifice of quality has many people interested in investing in a prefab home, custom-made to their wants and needs. Manufactured and modular homes have evolved into a comparable option for many families and will continue to grow more popular as people discover the many benefits that come with them, which include affordable luxury standard features that you can’t get for the same price as a site-built home. Affordable Luxury features can include beverage bars, huge tile walk-in showers, separate soaking tubs, tall banks of windows, porches, and built-in desk/office spaces.

Personal Mortgage Insurance

In addition, when you finance a manufactured home you avoid the personal mortgage insurance (PMI) required from site-built home financing if you do not put 20% down. This alone can take save you hundreds of dollars each month. Here are a few other reasons to consider when deciding whether purchasing a manufactured or modular home might be right for you:

Durability

The structural quality and durability of a home are important factors to consider. Natural disasters are becoming more aggressive and common. Depending upon the area where your home will be, safety may be top of mind. While you may have seen images of trailer homes, mobile homes, and manufactured homes torn apart or destroyed by hurricanes or tornados, many manufactured home builders go to great strides to help prevent this. For example, Oak Creek Homes not only builds a heavy home but makes sure it is installed and secured with a 47-point inspection (on all 18-foot and wider homes). This means a manufactured home is builtstrong and secured to its foundation, which keeps it from sliding off or rolling over. In addition, hardboard siding is used instead of vinyl. Hardboard siding stands up to the elements, resisting damage from wind, rain, freezing temperatures, and hail. This gives a manufactured or modular home years of protection and low maintenance. The HUD code regulations that are required for each and every home also ensure safety and durability for even the strongest storms and disasters. Hear from manufactured homeowners whose homes withstood category 4 hurricanes here.

Versatility

What makes owning a manufactured home more versatile than a traditional site-built home?  Most manufactured home builders allow customers to pick out various design elements of their homes. These can include exterior materials, like galvanized metal accents, metal roofs versus shingles, and body and trim paint colors. On the inside of the home, this can include colors for walls, cabinets, tile, backsplash, and flooring. Manufactured homes are utilizing some of the most popular design and decor choices so that you can customize the perfect place. You can take your home to the next level with the many options offered. Having this amount of power over your journey to homeownership is not only empowering but also it is also to first step to truly getting connected to your home and ensuring that every inch is built to your satisfaction.

Construction Process

When you’re anxious to purchase something, you probably are not willing to wait 2 years to receive it. This can be the case for many site-built homes today as material supply shortages continue to infiltrate the market. Manufactured homes, like the Oak Creek Homes specifically, receive many of their materials right here in the U.S. making the home-building process quicker and easier. Homes are built in a factory in as little as 6-8 weeks and then, installed on-site.

Summary

In short, it is important to explore the various ways to achieve home ownership and be open to new and improved options. Manufactured and modular homes have made a lot of progress over the years and have proved to be a great alternative to site-built homes, especially in an ever-changing real estate market. You can count on modern manufactured homes to be both affordable and sustainable despite the increase in prices we continue to see going into 2023. If you are curious about all that a manufactured home has to offer, you can visit www.oakcreekhomes.com to browse the many different designs and floorplans you are sure to fall in love with.

Contact us to Schedule a Visit or Tour

Ready to schedule a tour? Or have questions? Let us know, we’d be happy to talk with you. We can also help with financing and finding land for your custom-manufactured home. Land and home packages are available.

Other Educational Resources

Just starting the manufactured home buying journey? Download these handy checklists. They’ll start you off on the right path.

You can buy any of our top-selling single-wide or double-wide homes at your nearest Oak Creek Home Center. We deliver to Texas, Oklahoma, Louisiana, and parts of New Mexico. Manufactured home builder Oak Creek Homes has been building manufactured houses and modular homes for over 50 years.

 

 

The post Does Buying a Manufactured Home Make Sense for You? appeared first on Oak Creek Homes.

Smart Cottage at Round Top Antique Show

October 26, 2022By American HomestarFeatured, Retail

Our Smart Cottage: Mockingbird is at the Round Top Antiques Show October 24 – 29, 2022. Come take a tour. Oak Creek Homes Bryan is showcasing this popular Smart Cottage floor plan. This modern-day version of a tiny home is placed in front of Round Top Vintage Market. The Round Top Vintage Market is just down the road from the Big Red Barn along an 11-mile stretch of antique, boutique, and decor businesses.

Drone View of Round Top Location

Live Smarter

Smart Cottages are great as a first, second, beach, lake, ranch, guest, BNB, or rental home. Choice of 1-3 bedrooms, 1-2 bathrooms, 1 porch or 2.

Smart Cottage Mockingbird at Round Top

The 2 bedroom, 1 bathroom Smart Cottage model at Round Top has a modern design and color scheme. This Mockingbird model features Sherwin Williams tricorn black exterior paint with a reserved white trim, metal accent siding, an optional metal roof, an optional front porch swing, an optional back porch, and optional tall banks of windows in the primary bedroom.

Round Top Picture Gallery

Smart Cottage at Round Top

 

Standard Features 

Standard features of a Smart Cottage include an 8-foot covered front porch, vaulted ceilings, tall banks of Low-E thermal pane energy-efficient windows, a ceramic tile walk-in shower, and 3-tab shingle roof, and a 50-gallon electric water heater.

Smart Add-on Options

There are many popular additional options that can be added to customize a Smart Cottage. These include a closed-door laundry setup in the hall bathroom for most models, a kitchen island, a back porch on some models, a 6-cabinet pantry in most models, another set of tower dormers and clerestory windows in the primary bedroom, and barn doors where applicable. 

Smart Customization

Smart Cottages can be customized to fit your style and needs. You can choose the cabinet, tile, countertops, flooring, interior, and exterior colors! If you prefer more of a modern farmhouse look – you may opt for white shiplap, white or grey cabinets, white wood molding, white doors, and grey-toned flooring. If you like more of the rustic look, you may want to go with hickory cabinets and barnwood-colored flooring. Check out your full range of  Smart Cottage Decorating Choices.

Smart Technology Options

You can also add Smart Technology options like a keyless entry, front entrance video doorbell camera,  smart smoke alarms, and a smart thermostat.

See the Mockingbird’s Floor Plan & Pricing Info.

The Round Top Smart Cottage Model, like others, comes with an option to add an enclosed laundry in the bathroom vs. a standard stacked laundry option outside the bathroom. This extends the home by four feet.

Mockingbird D50EP8 D54EP8

The Entire Smart Cottage Line Up

So far, there are over 15 different Smart Cottage Home floor plans to choose from! Flip through our Floor Plan Guide and choose your favorite!

Contact us

Have questions or want to tour a Smart Cottage? We’d be happy to connect you with your nearest Smart Cottage location.

Smart Cottage Homes are built at our Oak Creek Homes Factory in Ft. Worth, Texas. Manufactured home builder Oak Creek Homes has been building manufactured houses, mobile homes, and modular houses for over 50 years. Smart Cottages can be built to different building codes to fit municipal requirements and constructed as either a manufactured home or modular home. They are less expensive per square foot than the typical tiny house or on-site built home. You can buy a Smart Cottage at any of our 19 Oak Creek Home Centers across Texas, Oklahoma, and Louisiana.

 

The post Smart Cottage at Round Top Antique Show appeared first on Oak Creek Homes.

Smart Cottage at Round Top Antique Show

October 26, 2022By American HomestarFeatured, Retail

Our Smart Cottage: Mockingbird is at the Round Top Antiques Show October 24 – 29, 2022. Come take a tour. Oak Creek Homes Bryan is showcasing this popular Smart Cottage floor plan. This modern-day version of a tiny home is placed in front of Round Top Vintage Market. The Round Top Vintage Market is just down the road from the Big Red Barn along an 11-mile stretch of antique, boutique, and decor businesses.

Drone View of Round Top Location

Live Smarter

Smart Cottages are great as a first, second, beach, lake, ranch, guest, BNB, or rental home. Choice of 1-3 bedrooms, 1-2 bathrooms, 1 porch or 2.

Smart Cottage Mockingbird at Round Top

The 2 bedroom, 1 bathroom Smart Cottage model at Round Top has a modern design and color scheme. This Mockingbird model features Sherwin Williams tricorn black exterior paint with a reserved white trim, metal accent siding, an optional metal roof, an optional front porch swing, an optional back porch, and optional tall banks of windows in the primary bedroom.

Round Top Picture Gallery

Smart Cottage at Round Top

 

Standard Features 

Standard features of a Smart Cottage include an 8-foot covered front porch, vaulted ceilings, tall banks of Low-E thermal pane energy-efficient windows, a ceramic tile walk-in shower, and 3-tab shingle roof, and a 50-gallon electric water heater.

Smart Add-on Options

There are many popular additional options that can be added to customize a Smart Cottage. These include a closed-door laundry setup in the hall bathroom for most models, a kitchen island, a back porch on some models, a 6-cabinet pantry in most models, another set of tower dormers and clerestory windows in the primary bedroom, and barn doors where applicable. 

Smart Customization

Smart Cottages can be customized to fit your style and needs. You can choose the cabinet, tile, countertops, flooring, interior, and exterior colors! If you prefer more of a modern farmhouse look – you may opt for white shiplap, white or grey cabinets, white wood molding, white doors, and grey-toned flooring. If you like more of the rustic look, you may want to go with hickory cabinets and barnwood-colored flooring. Check out your full range of  Smart Cottage Decorating Choices.

Smart Technology Options

You can also add Smart Technology options like a keyless entry, front entrance video doorbell camera,  smart smoke alarms, and a smart thermostat.

See the Mockingbird’s Floor Plan & Pricing Info.

The Round Top Smart Cottage Model, like others, comes with an option to add an enclosed laundry in the bathroom vs. a standard stacked laundry option outside the bathroom. This extends the home by four feet.

Mockingbird D50EP8 D54EP8

The Entire Smart Cottage Line Up

So far, there are over 15 different Smart Cottage Home floor plans to choose from! Flip through our Floor Plan Guide and choose your favorite!

Contact us

Have questions or want to tour a Smart Cottage? We’d be happy to connect you with your nearest Smart Cottage location.

Smart Cottage Homes are built at our Oak Creek Homes Factory in Ft. Worth, Texas. Manufactured home builder Oak Creek Homes has been building manufactured houses, mobile homes, and modular houses for over 50 years. Smart Cottages can be built to different building codes to fit municipal requirements and constructed as either a manufactured home or modular home. They are less expensive per square foot than the typical tiny house or on-site built home. You can buy a Smart Cottage at any of our 19 Oak Creek Home Centers across Texas, Oklahoma, and Louisiana.

 

The post Smart Cottage at Round Top Antique Show appeared first on Oak Creek Homes.

Un-Boolievable Open House Event Oct. 21-22

October 11, 2022By American HomestarFeatured, Retail

Huge Discounts on Select Stock Models!

This Halloween will be EXTRA UnBoolievable! Join us October 21-22, 2022 for our Open House Sale-A-Bration! Tour homes and enjoy Spooktacular Savings on ALL 2021 and select 2022 stock models! Earn Bonus Bucks up to $5,000 on select new home purchases! Lock in your spot today to tour the Affordable Luxury of an Oak Creek Home and to take advantage of these Un-Boolievable deals! Oak Creek Homes has 19 locations across Texas, Oklahoma, and Louisiana. Check out all our homes and discover your favorite floor plan at www.OakCreekHomes.com.

Contact Us

Move Up to Affordable Luxury! Have questions or ready to schedule a visit to tour an Oak Creek home? Contact us today!

Other Educational Resources

Manufactured Home Builder Oak Creek Homes has been building affordable luxury heavy homes for over 50 years!

The post Un-Boolievable Open House Event Oct. 21-22 appeared first on Oak Creek Homes.

Un-Boolievable Open House Event Oct. 21-22

October 11, 2022By American HomestarFeatured, Retail

Huge Discounts on Select Stock Models!

This Halloween will be EXTRA UnBoolievable! Join us October 21-22, 2022 for our Open House Sale-A-Bration! Tour homes and enjoy Spooktacular Savings on ALL 2021 and select 2022 stock models! Earn Bonus Bucks up to $5,000 on select new home purchases! Lock in your spot today to tour the Affordable Luxury of an Oak Creek Home and to take advantage of these Un-Boolievable deals! Oak Creek Homes has 19 locations across Texas, Oklahoma, and Louisiana. Check out all our homes and discover your favorite floor plan at www.OakCreekHomes.com.

Contact Us

Move Up to Affordable Luxury! Have questions or ready to schedule a visit to tour an Oak Creek home? Contact us today!

Other Educational Resources

Manufactured Home Builder Oak Creek Homes has been building affordable luxury heavy homes for over 50 years!

The post Un-Boolievable Open House Event Oct. 21-22 appeared first on Oak Creek Homes.

Mortgage Rates And The Decision To Buy A Home In 2022

September 20, 2022By American HomestarFeatured, Retail

Wanting to own a beautiful,  affordable luxury home is nothing new but what is new is the dramatic increase in mortgage rates which is tacking on thousands of dollars to the cost of purchasing a home. Americans are dealing with inflation on all ends of the economy spending more money on groceries, gas, and other everyday needs. Things are getting expensive and that’s obvious, but lots of folks don’t know just how expensive things are and what it might mean if you are in the market to purchase a home.

Mortgage Rates In 2022: What You Need To Know

Let’s go back to 2020 when things were somewhat normal before the chaos of COVID-19. Not only is the average home price up by more than 31% since June 2020, but mortgage rates since the latter half of 2022 have been steadily increasing as well. Mortgage rates were historically low at the beginning of 2022, hovering slightly above 3%, and then things took a drastic turn.

According to Freddie Mac, by the end of the first week, Jan. 6, 2022, the 30-year mortgage rate increased to the highest level since May 2020 to 3.22%, but it didn’t stop there. Rates continued on an upward hike landing us right around 5.89%.

You read that right. Since the beginning of this year, mortgage rates have shot up by almost 3 full percentage points and have even doubled since this time last year.  As you can imagine, many people currently in the market to buy a home are starting to think twice and look into more affordable options -one being today’s more modern manufactured or modular home. The ability to get the same luxurious and spacious experience as a traditional home for a fraction of the price is practically a no-brainer considering the fact that rates are expected to continue to rise.

Which Market Factors are Affecting Mortgage Rates?

Many factors are affecting the mortgage rates in 2022. These include Inflation, the health of the economy, and the Federal Reserve. Generally, when the economy is considered to be in good shape, we will see mortgage rates increase due to the belief that borrowers can afford it. Another driving force is the Federal Reserve which many of us are familiar with. While they don’t directly control mortgage rates, they do have quite a bit of influence because prime rates for mortgages traditionally follow the trend of federal rates.

A bond market is a financial market where participants can either issue new debt or buy and sell debt securities. Mortgage-backed securities are typically sold in the bond market which affects mortgage rates depending on their demand. When demand is high, mortgage rates increase and when it is low, they decrease similar to inflation.

Inflation

mortgage rates and buying a home How does inflation influence mortgage rates? Inflation and mortgage rates go hand-in-hand. When inflation happens, the value of the dollar increases reducing purchasing power directly causing mortgage rates to increase. When inflation increases, people will also start to see prices increase and this fact remains the same for homes.

Right now, we are experiencing the highest inflation rate we’ve seen in four decades! You’ve felt the sticker shock at the pump, the grocery store, and even your favorite restaurant. The annual inflation rate for the United States peaked in June at 9.1%, making it the largest annual increase since November 1981. In September, we are hovering at 8.3%. You can check out the inflation calculator chart to see current and historical US inflation rates here.

Health of the Economy

High inflation is a signal of an overheated economy. Post-COVID, economic growth has accelerated rapidly. Demand for goods and products, including housing, has simply outgrown the supply available. The limited supply of products in high demand, like housing, forces suppliers to raise prices continually.

Mortgage rates vary based on how the economy is doing today and its outlook. According to the US Conference Board, while the country is currently not “in recession….a broad downturn in the economy is on the way,” largely due to inflation and high-interest rates.

With the pandemic’s declining economic impact, inflation running at 40-year highs, and the Fed planning four more aggressive hikes, interest rates could continue trending upward this year.

Mortgage rates aren’t likely to fall again until late 2023 – at the earliest, according to Businessinsider.

The Federal Reserve

When The Federal Reserve needs to tighten up the money supply, they raise the Fed rate. To combat inflation and reduce overall demand in the economy for housing, the Federal Reserve began raising interest rates. Mortgage Rates mostly fluctuated through the second quarter of 2022 until the Federal Reserve’s June hike to curb inflation. The Federal Reserve does not set mortgage rates, but they do influence them. For example, the day after the Federal Reserve changed its rates, mortgage rates began skyrocketing with the largest week-over-week jump of .55% since 1987.

Will Rates Continue to Increase his Year?

Experts from Freddie Mac and other industry leaders differ on whether mortgage rates will keep climbing through the year or level off.

Experts like, Businessinsider, say mortgage rates aren’t likely to fall again until late 2023 – at the earliest.

The prediction pointing to an upward climb is attributed to a healthier post-COVID economy with low unemployment rates, high inflation, and the Federal Reserve’s plan for four more aggressive hikes.

What Factors Will Determine Future Rate Changes?

When trying to predict what’s to come as it pertains to future rate changes, there are five major factors to consider – all of which have to do with supply and demand. We’ve discussed the impact that inflation, the bond market, economic health, and The Federal Reserve has on mortgage rates but haven’t really covered housing market conditions. When more homes are being built or offered for resale, the increase in home purchasing leads to an increase in the demand for mortgages and pushes interest rates upward. You’ve probably heard real estate investors and agents rave about how crazy the market is for sellers specifically but what about purchasers?

In order to turn the market around in favor of prospective home buyers, we would have to see higher yields in the bond market, an increase in money supply by the Federal Reserve, and a tremendous decrease in inflation, but experts don’t necessarily see it going this way.

How are Experts Predicting Future Interest Rates?

Economic experts rely heavily on politics, consumerism, and other factors to help make projections about what rates will look like in the future. As of now, consumers expect interest rates to continue to rise to 6.7% by 2023 and exceed that by nearly two percentage points by 2025. Experts have a slightly different take. Lawrence Yun, NAR’S chief economist predicts that “as the Fed raises interest rates, the mortgage market will simply yawn,” assuming a stabilization of about 5.5% into 2023. Whether we see numbers closer to 5.5% or 6.7%, the truth is that both are higher than what most people can afford.

How Does This Affect Your Decision to Buy a Home?

Freddie Mac mortgage rates and home buyingWith rates being so high, families interested in purchasing a home are reconsidering based on affordability. Rising interest rates could raise your monthly mortgage payment and even fixed mortgage rates are more expensive. To put things into perspective (according to figures from NAR) a $429,000 house will cost an additional $5,640 per year. These additional costs are not small and prospective homebuyers are having a difficult time pulling the trigger on such an expensive decision but based on predictions, prices could continue to rise making purchasing a home sooner than later more ideal. Check out the chart attached with estimates on home costs based on Freddie Mac price appreciation and mortgage rate projections.

What about Manufactured and Mobile Homes?

Overall, manufactured homes are less expensive than traditional homes. According to HomeAdvisor, their total cost is around $100-200 per square foot; in contrast, a traditional new-build home averages $150 per square foot, and can easily go as high as $400, depending on the locality.

But there’s a cheaper alternative: the manufactured home. These prefab, permanent residences are factory-built, then installed on a lot. The average sale price of a manufactured home, as of February 2022, was $128,000, according to the U.S. Census Bureau (exclusive of land cost or other expenses). Even the biggest, most deluxe models can be around $250,000.

Though traditionally associated with temporary housing and trailer homes, these days manufactured homes can be just as permanent as on-site builds. Nor do you have to sacrifice space or functionality when you live in a manufactured property. In fact, the average size home purchased is approximately 1,400 square feet, and some floor plans can exceed 3,000 square feet.

Essentially, manufactured and modular homes have become more luxurious and less expensive than traditional homes, making them a great choice in the height of economic changes that could continue to hit your pockets hard. If you are interested in learning more about the new fad in housing, you can browse for your new and customizable dream home at www.oakcreekhomes.com. Also, be sure to follow all our social media which are linked on our website.

mortgage rates and home buying

Contact Us

Contact us today if you have more questions or would like to tour an Oak Creek Home in person. We offer 100+ Affordable Luxury Floor Plans to choose from!

Other Educational Resources

Manufactured Home Builder Oak Creek Homes has been building affordable luxury heavy homes for over 50-years! Find your nearest Oak Creek Home Center.

The post Mortgage Rates And The Decision To Buy A Home In 2022 appeared first on Oak Creek Homes.