Modular Home Frequently Asked Questions
Financing: Construction Loans and Permanent Mortgages
Modular Home FAQs - Financing
Do I need perfect credit to buy a modular home?
At the present time Modular home place is working with a lender who will be able to offer modular home mortgages for people with 620 fico scores. Recently, 2008 to 2011 home buyers interested in building a new home had to have a credit score in the 700s. In addition the modular home financing package allows people to have as little as five percent in equity to build a new modular home.
What is the benefit of a one time close modular construction mortgage?
A one time close allows the modular home buyer to have one closing on the permanent and construction loan. Many bank require home builders to secure permanent financing and then shop for a higher interest construction loan. The financing package available through Modular Home Place's affiliate lender can save you thousands of dollars by providing modular home buyers a one time close on their construction and permanent mortgage.
What are the financial advantages to building a modular home compared to buying an existing home?
The advantages to building a new modular home is the fact that the home your are buying is brand new. Your new home will have Brand a new roof, siding, water heater, heating and air conditioning systems, windows, doors and etc. Often people who buy a used home compared to a new modular home find unexpected repairs. These unexpected repairs can play havoc on paying the monthly mortgage payments. It is always wise to budget extra money into your home buying budget when buying an existing home.
Another advantage to building a new modular home over buying an existing homes is the level of energy efficiency of the new home. Older homes have often been built before any building codes were in place. Modular homes are built to national energy codes and inspected in the factories to insure cost effective energy efficient construction systems where your modular home will cost less to heat and cool, this will make paying your mortgage easier to pay for the life of the home.
In addition to being more energy efficient, a new modular home will be more comfortable to live in. A new home will have an HVAC system designed to heat and cool your home so you are comfortable year round. When you are comfortable in your home, it will cost less to heat an cool and saves you money every month your have to pay your mortgage payment.
Do all banks lend money on modular homes?
No, not all banks will write a mortgage on a modular home. The primary reason is the bank and or banker is ignorant to the quality standards and building codes required for a prefab home. These bankers are so misinformed they actually lose money and the opportunity to underwrite the most secure building system: modular.
Smart banks happily provide both construction loans and permanent financing for modular homes due to the security factor. A modular home is close to being 90% complete when it is set on the foundation compared to a site built home that goes up in stages with additional construction inspections. In addition to a modular home going up faster, weather rarely plays a role in extending the construction loan.
Modular Home FAQs