What is a Site Condominium?

At The Orchards, our residents own both their home and home site, as well as share ownership in the common areas of the community as a member of a condominium association.  As a resident, you will have all the benefits of living in the “Best Community in the Midwest”, as designated by the Manufactured Housing Institute, while reaping the rewards of land ownership.  You will share the amenities such as the clubhouse, pool, and playground with your neighbors, while enjoying access to more information and predictability in the costs associated with ownership. 

Why Own the Land?

As a site condominium community, our residents qualify for significantly better financing than someone looking to simply purchase a home. If you think you can’t qualify for a loan, we have several ways to help buyers who thought they would never qualify. In addition to better financing options, our residents are land owners, thus do not pay home site rent. Our residents know that each month, more of their housing payment is building equity, rather than being wasted by paying site rent.

How does this work?

First, there is no site rent. The resident owns the land and increasing site rent is no longer a concern. Second, the resident can now enjoy the benefits of land ownership, including building equity, better return on the investment, and tax benefits. Finally, the resident is now a co-owner of the community. Residents have more invested and therefore work more closely to maintain the community environment while preserving their property values.

If you are paying site rent in a community or rent for an apartment, that money is lost: you do not build equity nor can you claim a federal income tax benefit from it. Consider how much of this money is wasted in one year...two years...five years... For example, if you pay $369 per month is site rent and assume this will increase by $20 a year, in five years you will have spent $24,540. If you owned your land, that money would be building equity, which you could use to finance improvements in your home or use to purchase a larger home as your family grows.

What benefits are owners enjoying now?

1. No More Unpredictable Rent Increases.  As a member of the Orchards Condominium Association, our residents pay an $80 per month condominium association fee.  NO MORE SITE RENT!  This fee must be based on the actual costs of maintaining the common areas (by State Law) and each site condominium owner receives a full financial statement every year justifying the fee.  The only way this fee can increase is if the direct costs of running the community increase (i.e. trash removal, utilities, pool maintenance, etc.). Our residents now have more control over their financial future.
   
2. No More Throwing Away Rent With No Return.  Traditionally, residents of manufactured home communities are considered renters and their monthly fees go to the landlord.  Any increases in property value over the years, benefit the landlord, not the resident.  As a site condominium owner, our residents own the land and benefit from appreciating property values.  When they are ready to sell their home, they reap all the rewards.
   
3. More Financing Options.  Over the last five years, financing for home-only loans has grown extremely difficult.  This has caused most residents of manufactured home communities to pay very high interest rates on their home loans (some 11% or even higher).  In addition, if they decide to sell their home, potential buyers have a very difficult time finding affordable loans.  When purchasing the land, the home and the home site become one and are now considered real property.  Lenders believe this offers more security for their loans, and therefore applicants can qualify for lower interest rates (some as as low as 6.25%).
   
4. Similar Housing Costs.  In most cases, if you currently live in a manufactured home community, your cost of ownership will be the same as your current costs.  Due to lower interest rates available on real estate loans, generally you can buy the home site and keep your monthly payments the same.  Many of our residents actually pay less per month to own the land.
   

Frequently Asked Questions

• Is there a screening process for new residents? Yes. The Orchards prides itself on maintaining the highest standards within the community. Each resident 18 years and older must submit to a background check before receiving community approval.
• Are there community rules? Yes, there are rules designed to help provide the best living experience for the residents as well as maintain the property values of the homes in the community.
• What services does the Condominium Association provide? The association handles trash pick-up, snow plowing of roads, as well as maintenance and operation of the pool, fitness center, clubhouse, and other common areas of the community.
• What do the lots include? The lots in The Orchards are fully developed and include water, sewer, and electrical connections, plus sod and home foundations, making them an excellent value.
• Does purchasing my land along with my home make it harder to sell later? Financing options for new buyers are much better when purchasing land and home together, which means you can offer your condominium home to more potential buyers. Furthermore, you can sell it just like any other home, including working with a real estate agent!

How do I learn more?

For more information on this unique opportunity, call The Orchards today to schedule an appointment.  It only takes a few minutes to get the information.  We’ll assist you with a financial qualification to analyze how you CAN afford this housing alternative.  We have special programs for people with difficult financing situations, all on a private, confidential basis.  We look forward to working with you to make your dream of land ownership a reality!