Can I get  a 4 year home loan?

I am in the Navy and I am moving to San Diego in April.

I found a decent manufactured home for $89,000 that I want to buy.

My BAH will be $2500/mo.

I do not want a 30 year loan on a 89k trailer when I can pay it off in 4 years.

Currently I only have about $4000 in savings so I don't have much for a down payment. 

Are there penalties for paying it off early?

My goal is to purchase a manufactured home for $100k or less and have it payed off in 4 years and rent it out when I transfer somewhere else. What are my options?

Thanks in advance for any answers.

Update:

Apparently some people don't understand what BAH is. BAH is the money the military gives its members to pay for housing. BAH in San Diego is $2500 for me, on top of my normal base pay. You are surprised that I can pay off an 89k trailer home in 4 years with $2500 a month in BAH? If you do the math that's $120k so it will be pretty easy for me to do. Also if you must know, I just bought a new truck which is why my savings is lower than normal. Stop being so judgmental right off the bat.

Update 2:

The trailer is in a trailer park community and it does include the land. I don't have to move it anywhere.

Update 3:

Typo. Meant to say paid instead of payed...

4 Answers

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  • Anonymous
    1 month ago
    Favorite Answer

    Remember you will often have to pay a monthly fee for the property that the manufactured home is on, then you would pay for utilities.  Calculate the drive so then the time and wear on your vehicle as well. 

    Look into using the VA guaranteed mortgage then you wouldn’t need a down payment but there are restrictions. 

    You can always pay it off early if you wish. Many do. 

    By the way it’s paid not payed. 

  • 1 month ago

    In the USA mortgages no longer have early payoff penalties (federal laws were changed a while back to prohibit it).

    So no matter what type of mortgage you get or the original loan term, you can always make extra payments and pay it off early.

    Just make sure you look at the entire picture - at $89k you are probably getting an older trailer and you do NOT own the land it sits on, which means you'll owe rent to the land owner every month until you either pay thousands of dollars to have your trailer moved off their land or sell the trailer to someone else. Old trailer homes cost more to maintain and are harder to sell

    The value of a manufactured home doesn't go up nearly as fast as standard houses or even condos or other options, and the value can even go down if the local market is stagnant for a few years.

    Also consider expenses like insurance, taxes, utilities and the cost of commuting.

    Mobile homes can really be a financial trap so just proceed with caution. The fact that you only have $4000 available for down payment is also a huge red flag - do you have an emergency fund to cover a major repair if something happens?

    if you are trying to build a good foundation early in your life you might be better off to just live on base if that's an option or rent a cheap apartment close to base, live frugally and save/invest as much as possible for the next 4 years. Then when you see where life takes you after this assignment you will have a nice nest egg to use as a down payment on a house or whatever else you decide to do.

  • 1 month ago

    You would be better off with a 15 year loan then pay it off sooner.  Make sure it includes the land.

  • Anonymous
    1 month ago

    Mortgages no longer have pre-payment penalties.  You can pay it off in four years if you want to.

    The rate on a 15 year will be lower than a 30 year.   You might be able to get a 5 year ARM. 

    I'm always amused when someone says they have the cash flow to pay off an entire mortgage in four years but can't manage to put money in a savings account for a down payment.

    Where are you going to put this manufactured home and how much will THAT cost?

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