Modular Home Loans
Steps to Financing a Modular Home
Modular Home Appraisal
One of the conditions to your loan will include a home appraisal. The appraisal determines the loan to value to ratio the underwriter has stipulated as a closing stipulation. The appraisal of your modular home will determine the amount of the loan.
Items Required for Your New Modular Home Appraisal
- Building Contract - The appraiser will need a copy of the contract with your builder. The contract will spell out any amenities included in the home. For example if the builder is going to install cherry cabinets and a solid surface countertop in place of standard oak cabinets and a laminate countertop, the appraise will be able to include upgrades on your appraisal.
- Floor Plans and Elevations - The appraise will need the floor plans and elevations of your modular home. The floor plans and elevations will be used to compare your new home with existing homes in the vicinity you are building your prefab home.
- Big Changes and Your Appraisals - For your appraisal it is important that the plans are close to complete and no major changes will be made. Major changes such as square footage changes; adding or subtracting a bathroom, or changing the designation of a room (i.e. changing a bedroom to a den) can be major influences on your modular home appraisal. These big changes also alter the mortgage agreement because the home is no longer the same.
- Small Changes and Your Appraisal - Small changes to the contract such as minor finishes as lighting choices; flooring colors rarely influence the value of your home's appraised value.
- Something to Consider - Have the manufacturer of the modular home include an all inclusive appliance package for your prefab home. The advantage to including appliances in your modular home purchase include: the appliances are installed; the appliances are in the mortgage which allows you to write off additional interest; the interest rate on mortgages is lower than consumer loans. The big benefit is less out of pocket expenses to pay for unforeseen building difficulties.
- Time Frame for an Appraisal - The bank will order the appraisal from an objective licensed real state appraiser. Most appraisers should be able to complete your appraisal within a week.
Steps to a Modular Home Construction Loan