The process of receiving finance and choosing your modular home go hand in hand. This is actually a bit tricky, as you will need to know the size of the home that you can afford before choosing the manufacturer, but you will not be able to finalize the loan until you have signed a contract with the modular home manufacturer.
Fortunately, the financing of prefab and modular homes is similar to that of site-built homes. However, you will have to factor in all the costs like the cost to buy land, the house, and additional expenses that are necessary to prepare the land and finish the works of the home, while talking out the mortgage.
You will also need to remember that modular home construction needs a big down payment than many of the other manufactured homes. It is likely that you need to put down about twenty percent of the total cost of construction as down payment. The steps to obtain financing for your modular home are discussed below.
Banks may prequalify you for construction-to-permanent mortgage loan, but this will be done based on your income and credit score. It will be good to seek at least three loan estimates to find the best loan plan for you.
Find the Location
If you have not made the selection of land, you will have to do it now. In some situation, you may need to buy the land before applying for the construction loan. In such cases, you will need to talk with your bank about the best way to handle the situation, as you may end up taking two loans, one for construction and one for the land.
After choosing the land, the next thing to do is to select the manufacturer. Search for reputed manufacturers that offer great design plans. You need to talk extensively to the manufacturer before deciding on the manufacturer.
Select a General Contractor
Some of the manufacturers may help you find the general contractor for you, but if they don’t, you will have to find the one for you. Always look for a person who has good experience in modular home building and anchoring.
Now you need to go to your preferred bank with the home contract from the builder, general contractor, and the land contract details. You may also need to provide your income details, employment proof, tax returns, credit history, job history, and blueprints of the home.