Expert: Lemelia Bonner - 8/22/2004

Question
Hello Lemelia,

I hope you can help me come up with some affordable housing for myself.  I will list some facts for you:

1.  I am 64 years old and in excellent physical health.  I do suffer from depression and acpuncture/acupressure is the treatment that works best for me.
2.  I receive about $1065/month net Social Security Disability.
3.  I work parttime for about $1,000 per month.
4.  I have no savings - yet.
5.  I live in Columbus, GA/Phenix City, AL.
6.  I have a master's degree in art education and am a former community college art instructor.
7.  I live alone and plan to keep it that way.
8.  I need some permanent, low-cost housing.  I would like a city loft but the prices are outrageous around here.
9.  I am very low-maintenance and frugal.
10.  I am very good with residential space planning but not adept at hands-on construction.
11.I don't want old housing because it takes all your money to keep it going - like an old car.
12.  I could manage with about 800 square feet - one big room would suit me just fine.  With a space for a bathroom and a corner kitchette.  I guess I like "holistic living spaces".
13.  I do qualify for VA financing.
14.  I recently filed for personal bankruptcy and the debts will have been discharged for one year, January 2005.
15.  Would the FHA 502?e program work for me?
16.  What are your suggestions for my securing permanent, low-cost housing in my area?

Thanks very much for you thoughts.

Bill

Answer
Hello, Bill

I'll try to answer your questions as fully as I can without the benefit of a more complete financial picture.  You say that you currently have no savings and that your bankruptcy was discharged only about seven months ago, so I presume that you are planning to use the next year-and-a-half to save for the initial costs of your home.  Since you don't feel that you are in a position to do construction work yourself, I would suggest that you take a look at a low-cost modular home.  There is a variety of single-width homes of this type (in the 800 sq. ft range) that would probably suit your needs quite well, since you are single and prefer something new with little in the way of maintenance requirements.  It sounds as though you might like to plan the layout of the home yourself, and this is possible with a few modular home manufacturers.  Here are a couple of suggestions for you: Take a look at this website: http://www.modularcenter.com/cozycottages  These are homes that might fit the bill quite well for you, and can be shipped to your area.  Another site is http://www.blueridgecabins.com if you're interested in something rustic.  As for the type of financing you might be eligible for at the time you plan to buy/build, I can't really advise you on that, not knowing what loan programs may be available.  I'm not sure what program you're referring to when you mention a 502?e.  The only related thing I can think of is the 502(e) section of the Gramm-Leach-Bliley Act, but that has to do with financial institutions disclosing a borrower's personal information to third parties.  I hope this helps you in your quest.

Lemelia B.