Building a Home Vs. Buying a Home - Page 2

mccartygirl · #21 (**permalink**) 09-25-2006, 10:10 AM

What about the pre-built houses? The ones built in a factory and put together on the property? I know some people have a bad stigma about them but they're supposedly very well built and you can get a good deal. I know someone who's parents built one like that in Northern Michigan - you can't tell the difference. It all looks really nice and they're asking $750,000 for the "cabin".

Snoopy2645 · #22 (**permalink**) 09-25-2006, 06:43 PM

We have looked into those prefab homes not sure if I would ever buy one but we thought it would be cheaper than building a brand new one & around here just the house no land or nothing these go for well over 100k & most houses around here with land & all dont go for that much so to us they are seeming kinda high!!!

Diolla · #23 (**permalink**) 09-25-2006, 09:09 PM

As far as loans, here you have to get a 'land loan' then a 'construction loan' then when everything is finished you get the whopper mortgage that rolls it all together. Unless you have experience building houses our bank will not give you a 'construction loan' you have to have a builder, plans and an estimate. They do not want to take a chance on loaning you the money to build and then it turns into a worthless pile. Sometimes they pay the contactor for you (to avoid contractor liens). Once it is finished an appraiser will come out and you will get a conventional mortgage on it.

Ima saver · #24 (**permalink**) 10-01-2006, 04:39 PM

I certainly would not buy a prefab house. They are not much better than a mobile home! They do not go up in value!

Snoopy2645 · #25 (**permalink**) 10-01-2006, 06:46 PM

Well we just looked into them cause we thought it would be cheaper than building but I believe these are coming out of the same factories as mobile homes so guess thier is no difference!!! Except for around here they are going for alot of money when trailers arent go figure LOL!!! We have just been looking into buying land & building in the country or something & we thought this would be easier but we wont one reason is the price on these prefab homes like you said why when they are just a trailer KWIM

bjl584 · #26 (**permalink**) 10-09-2006, 01:07 PM

That's a hard question to answer without knowing some info about the housing market and land costs in your area. It also depends on your personal financial situation. Also, what kind of house are you planning on building if you go that route? For most people, their first home is bought not built just because of finances. Probably cheaper to buy an existing home than to build one. Building a home is probably one of the largest undertakings that someone can do.