Financing a Modular Home

As you weigh the benefits of investing in a modular home or addition, consider that modular homes increase in value at exactly the same rate as site-built homes. And the process of financing a modular home is the same as well.

Regardless of whether you wish to build a brand new modular home or apply renovations to an existing home, there are a variety of financing and loan options available to you. You may choose between:

  • Construction Loan
  • Permanent Loan
  • ‘One-Step’ Construction/Permanent Loan

Modular homes under construction makes use of a "construction loans" – these are loans that pay out periodically to contractors, subcontractors, and suppliers as work is completed on the home. These are typically stand-alone loans with their own closing costs and fees.

After construction is completed, "permanent loans" provide financing for the remaining balance on the construction loan, plus the addition value of the finished home. This is your typical “mortgage loan” with varying lengths (15, 20 or 30 years) and rates of interest.

If you prefer to negotiate the terms of both loans at the same time, thereby saving on closing costs and locking-in on a competitive interest rate, "construction/permanent loans" are the right choice. These “dual-purpose” loans provide financing during the construction of your home, and then modify into a more traditional mortgage loan once the construction is completed.

No matter which loan type you choose, the important thing to remember is that we will help you obtain loan qualification and locate the financial resources needed to build your beautiful, functional home. We are here to assist you in the financing process in any way that we can, and are happy to answer your questions.

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Helping You Get Loan-Qualified

Whatever your reasons for considering a modular home and no matter the size of your budget, Modular Advantage is committed to helping you obtain appropriate financing. We have the resources and expertise to help get you loan-qualified or direct you to the appropriate lenders, regardless of credit history.

If you have questions or inquiries about acquiring a modular home construction or modular home permanent loan, please Contact Us today.

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