Financial Information

Financing Modular Homes & Buildings

For the most part, modular homes are considered the same as traditional stick-built homes. They are both permanent structures and will appreciate in value over time. There are some small differences in financing a modular home.

If possible, you should first approach a mortgage company that has experience with modular homes. Otherwise, you may encounter some headaches as the inexperienced mortgage company tries to catch up with and learn about modular homes. They may try to fit your modular home project into one of their predesigned loan packages instead of having a proper matching loan package to start with.

As with buying traditional stick-built buildings, modular homes can have a fixed interest rate or an adjustable interest rate for the life of the loan. It is also possible to finance a high percentage of the value (up to 95%) although it is not recommended. Once you are approved for a loan, you can have a timeframe of up to one year for construction to be completed. This is plenty of time since most modular construction only requires one to three months. Make sure you find an expert to help you with this process. Many modular home factories also provide in-house financing options. We recommend that you approach several mortgage companies to find the best one to suit your personal needs and finances.

Here are some more helpful articles to learn about financing modular homes:

Learn about Construction to Permanent Mortgage Loans
Learn how you can finance your dream modular home with a construction to permanent loan option that is available at most banks. This option simplifies the process and reduces fees by combining your construction cashflow needs with your long term mortgage.

FHA New Home Loans
Don't have 20% down payment for a traditional home loan? The US Government offers FHA loans with as little as 3.5% down payment required from new home buyers. Learn about this affordable home financing option for first time home buyers.

Home Buying with Bad Credit
Mistakes happen in life but that doesn't mean you should be forever blocked from owning a home. Learn how to get over the hurdles of bad credit and back on the road of good finances with these helpful tips for applying to finance a home with poor credit.

Step by Step Home Financing Process
Buying a home is likely the biggest purchase you will make in your life. Don't you want to know the steps involved to make sure it is all smooth sailing? Let us help prepare for you so you can better expect and plan for the upcoming phases in financing a new home.

How Modular Homes Appreciate in Value
Find out how these dream homes are great to live in and great for your finances. We explain why realtors and banks treat modular homes the same way as site build homes that also appreciate in value over time.

Modular Appraisal Process
Ever wonder how modular homes are appraised? We'll explain the process and what you can do to maximize the value of your dream home. Learn how to avoid mistakes in designing your custom home so when the banks have your home appraised it reaches its maximum potential.

Avoiding Unbudgeted Constructions Costs
Building a house isn't easy or cheap. Become educated so you can properly plan and budget to avoid unplanned constructions costs that can derail your project. Having a rainy day fund is nice, not needing to use that reserve fund is even nicer.