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.
One provider of modular home loans is Wells Fargo. 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.