Modular Home Loans
Disbursements and Draws
Modular Construction Loan Draws and Disbursements
The disbursement schedule tells you and your modular home builder the time frames the construction loan will be paid out from the bank. These time frames are based on construction performance. The performance items include: foundation installation; modular home delivery; HVAC installation; interior and exterior button up - it all depend on your banks policies.
Modular Homes and Change Orders - Any changes made to the home that will increase the cost of the prefab home construction made after closing will not be included in the mortgage or construction loan. This means that if you make changes, you will need to use out of pocket expenses for these changes to your prefab home construction.
Modular Home Benefit and Warning - When you are in the design stages of building a modular home, it is very important you review the floor plans, electrical schedule, elevations and contract very carefully. By reviewing your plans and contract for your modular home, you will minimize any expensive change orders and receive the the home design and finishes you desire. By eliminating change orders, you save out of pocket expenses when building a prefab home.
Disbursement and Draw Changes - Once you and your builder agree with the bank on a disbursement or draw schedule, you will not be able to change the draws with your lender. It is very important for the builder to understand when he will be paid while he is building your modular home.