Modular Home Loan

Modular home loans are customized for home buyers who want to finance a factory built house but not necessarily the land that it will rest upon. It is a unique opportunity for houses that are manufactured elsewhere, almost to completion, but which are assembled on site-- it is not necessarily the same kind of financing needed for a mobile manufactured home which is built on a steel chassis. This type of financing is similar to loans designed for site-built homes which share the same building code requirements, except they have terms which better anticipate the needs of modular construction and do not need to be tied to a property deed or title. This makes a modular home loan advantageous if someone wants to live on rental property, family land, or have separate mortgages for the land and home.

This type of financing can be obtained from any lending source, including the contractor or modular house dealer. Variables can allow a person to anticipate cost overruns such as unforeseeable excavation expenses, changes in specifications, assumptions made that are incorrect, and unfortunate building delay costs. Modular home loans will vary in amount depending on the needs and whether or not a contractor is hired. A modular home loan can have fixed or adjustable interest rates, the same 30 or 15 year terms, or various down payment options; rates will depend on credit standing, employment history, and the down payment. If a person is looking for a modular home loan from the Veteran's Administration , it can be processed through the VA's regular program. Making decisions can be stressful and confusing, but knowing God is listening can be very comforting. Psalm 46:10 says "Be still, and know that I am God: I will be exalted among the heathen, I will be exalted in the earth."

A person needs to talk to a lender to make sure that they can use the same lender for both the construction and the mortgage. Plus, it is helpful to plan ahead in two other ways: get prequalified by one or two lenders and apply for pre-approval. A modular home loan lender is going to assess the value of the house to protect his investment. Expect to pay some fees and "points" which may equal one point per one percent of the construction loan. Make sure to get the exact fees in writing. A person will typically only pay interest on the money borrowed during construction. When the house is complete, and the final construction disbursement is issued, a person will begin to pay off the mortgage, both the principle and interest. Modular home loans are going to make it possible to enjoy a house, constructed elsewhere, but assembled permanently in the location of choice.

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