Modular Home Financing mortgages

Financing Modular Homes

Finance and insurance options for modular homes are the same as site built homes. Modular Home Place can help you obtain financing. Of course you can always contact your local bank, mortgage broker and/or your local insurance agent.

Value appraisals of modular homes are based on the same criteria used by appraisers to evaluate site built homes, and are often compared by appraisers to site built homes in the same area.

Construction Loan Process

Pre-Approval

The first question is always how much will this house cost? In reality, the first question should be is, “How much can I afford?”. The easiest way to answer this question is to be pre-approved for a construction mortgage.

When contacting a mortgage source it is imperative that they know that you will be acting as your own contractor on the project. Specifically ask if the bank allows you to be your own contractor. If the mortgage source does not offer “sweat equity” construction packages, move on to another source.

This is the easiest step in the construction loan process. You need to contact either a mortgage banker or broker offering “sweat equity” construction loans. Your loan originator will need minimal information for you to be pre-approved for a loan. The information you need to provide will be your name, address, income and social security number (used to access your credit report). The loan originator will review your credit report, income and complete a basic mortgage analyses to pre-approve you for a mortgage.

The mortgage analyses will review your debt to income ration and your credit rating. These two items will be the strongest indicators to the type of loan you will be able to receive to build your modular home. There will also be stipulations the bank will request to close on the mortgage - escrow funds, down payment money, etc.

You can be pre-approved for a mortgage

within 24 to 48 hours with most lenders.

Preparing to Close On Your Loan

You will need to provide the following items for your loan originator:

Engineered Modular Drawings - Engineered drawings from the manufacturer

Modular Home Order - Modular Home Place modular home order listing the specifications and options for your home

Cost to complete - You will need to show the bank what the home will cost to be completed. Click here for a Cost to Complete work sheet.

Legal description of your building lot

Proof of current employment (last 2 pay-stubs)

Proof of continuous employment (last 2 years of

income tax returns and W-2s)

Proof of liquid savings (last 2 bank statements)

Any additional stipulations from the pre-approval process

Your mortgage lender will order an appraisal and title search on your building lot. Review the information you have forwarded and prepare to close your loan.

For more details, contact your lender for their exact procedures.

Need Help?

Contact Modular Home Place for your list of modular Friendly lenders in your area.

Request Mortgage Help

“Modular Homes Make Sense…”

Bob Vila

Modular Home Sales: Pennsylvania, New Jersey, New York, Connecticut, Maryland, Delaware, Ohio, New Hampshire, Rhode Island, Maine, Vermont, North Carolina, Florida, Tennessee, Georgia, Louisiana, Alabama, West Virginia, Virginia, Colorado, California, Nevada and Arizona