When building a new home, one of the most important steps in the process is figuring out how to pay for your home’s construction and when building a modular home, the
question of financing is equally, if not more, important. That is because some lenders are unable to provide construction loans and mortgages for new modular home projects. Our guide to financing a modular home covers the nuances of the process, including a comparison of financing options, known modular home lenders, a summary of the financing process, answers to key questions that you may have about financing your modular home’s construction and a summary of important terms. Continue reading
below for our guide to financing a modular home, or for assistance with your project, connect with one of our prefab concierge representatives. Comparing Different Financing Options for a Modular Home Depending on your individual circumstances and the needs of your project, individuals looking to finance all or a portion of their modular home have a few options. While the most straight-forward option to pay for your modular home’s construction is in cash, that is not
realistic for many individuals. Next, individuals looking to finance a portion of their project, often up to $100,000, or even the purchase of land, may want to consider personal loans. And for financing the entirety of the home’s construction, individuals may want to consider construction-to-permanent loans. It is worth noting that the terms and characteristics of your loan will vary based on your chosen lender, the size and scope of your project, and your individual borrower
profile. To better understand your options for financing a portion or all of a new modular home, our comparison table breaks down different financing types and key product characteristics like maximum lending amounts, terms, who has control over the payouts, application requirements, interest rates, and application and approval timeframe.
*The information included in the table, particularly, maximum loan amounts, terms, and requirements, will vary based on your individual borrower profile and may differ from lender to lender. ** Individuals who are existing homeowners and are looking to finance the construction of their modular home using equity in their current property can see more information on home equity loans and home equity lines of credit (HELOCs) in our Guide to Financing Prefab Homes Process for Financing a Modular Home What is the process of financing a modular home? The process for financing a modular home is much like that of financing a traditional, site-built home. This process includes:
Frequently Asked Questions Can you finance a modular home? Yes. Although not all banks and credit unions finance the construction of modular homes, they can still be financed with construction or construction-to-permanent loans, much like those used for a site-built home. Why is it more difficult to finance a modular home than a traditional site-built house? Due to the way the draw process is structured on most traditional construction loans: draws are spaced out over a series of checkpoints throughout the build process - and the construction timeline on a modular home: site preparations and module manufacturing can take place at the same time and often early on in the project timeline which requires more capital, earlier on in the process, some banks do not offer lending on modular home projects. Do all banks finance modular homes? Not all banks finance modular homes. We have found a number of financial institutions that regularly work with individuals to finance prefab projects. See our full list of companies that finance prefab projects. What is required to finance a modular home? In addition to required financial information (credit check, income information, financial history, etc.) individuals applying for a construction loan must also submit detailed information on their chosen company, project plans, and a detailed project budget. Companies That Finance Prefab Projects
Key Terms
We respect your privacy. Thank you! The guide will be emailed to you soon. If you want even more support with your project, then signup for Prefab Concierge - our free service where you are paired with a member of our staff who provides you 1:1 support with your potential project -> Learn More What is the longest you can finance a mobile home?How long can I finance a mobile home? The length of mobile home financing depends on the lender. However, you can expect to find loans of anywhere from five to 30 years, depending on the loan type.
What is a clip mortgage?Mortgage clips or swaps are a type of financial exchange contract, through which benefits are exchanged between the financial institution or bank and the customer.
How much is a modular home in NC?Modular Homes in North Carolina
9.8 million people call North Carolina home, and that number is growing everyday with the average price of a modular home clocking in at $55-$75 per square foot, meaning that you can get a brand new modular home for $117,000 depending on where you choose to settle in.
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