Financing a Modular Home
When it comes to financing a modular home it should be the same process as financing a traditionally built home. Most lenders prefer to finance a modular home over a traditional built home for a couple of reasons:
- The financing time is typically shorter (3-4 months compared to 6-12 months or longer) and,
- They assign less cost overruns to a modular building (around 3% compared to 10-15% for traditional builds), because a modular home price is typically more consistent and structured.
It is important to understand that you need a construction loan to get your home built and this will eventually be rolled into a mortgage after building is complete.
Note: Not every bank does a construction loan in-house. Some banks outsource the construction loan to another bank and only deal with the end mortgage product. If you are working with two banks (one for the construction loan and another for the end mortgage) be aware that you could be subject to two sets of closing costs (one from each bank). Keep in mind that if your bank does not do both types of loans it may be beneficial for you to seek out a lending agency that can help you with both the construction loan and the mortgage.
Contact your local lender to get started today!
Meet Modular Home Lenders
I recently had the experience of working with a local financing contact the Avenue of Homes provided. She was very friendly and helpful. All the documents one has to round up to actually qualify for a loan can be very overwhelming. She helped us with that task in every way possible. She answered our questions quickly and completely. I’m sure the whole process would have been much more difficult without her valuable help. When all was said and done, I was left with a feeling that she really cares about the people she helps!