purchasing during job loss

[Jenn Baker]

Will try to make a long story short. We have a nice lump sum of money coming. We rent at a rate more than it would cost to own. My husband is possibly losing his job before the end of the year. We want to take the lump sum as a down payment on a new modular home. Hoping to be built and ready to be lived in. Our thought process is renting is so expensive and you have to be able to afford to have a home job or no job. What happens if he loses his job in the middle of the ordering delivery building closing process. Would love input 

[Richard C.]

I think Jessem gave you good advice.  I don't think it is crazy to buy when you are facing a job loss.  I do think it is a very bad idea to buy a new modular while facing job loss.  It's just like buying a new car; it is worth less the instant you buy it, and while (unlike a car) it will eventually appreciate (unless it is a mobile, not a modular) you will be underwater for a couple of years at least.

There are existing houses in your town for less than you would pay for a new modular, and if you buy right you may have some instant equity.