Modular Home Financing

Financing a modular home is very similar to financing a stick-built home. In fact, banks that are familiar with modular construction actually prefer it over stick-built, because the time frame is so much better (3-4 months compared to 6 to 12 months or worse). Banks also assign less cost overruns to modular building, around 3%, compared to 10-15% when financing a stick-built; due to modular home’s better predictability, consistency and structured pricing.

Below are two banks that we highly recommend due to their in-house construction loans and familiarity with building. Rural 1st® powered by Farm Credit Services only finances rural builds or if within city limits, those cities with populations of 2,500 or less. Veridian Credit Union has no qualifications based on location.

MODULAR FINANCING PROCESS

• WEEK 0     Complete project estimate so you have sound numbers of costs associated with your unique home building plans You also want to talk with bank and get prequalified.

• WEEK 1-4 Have floor plans of your house drawn & review options you want to upgrade beyond factory standards.
  Fine-tune your project estimate, and have Sunrise help with subcontractors you need (foundation, HVAC, electrician, plumber, garage, porch, septic, misc.) 

• WEEK 5 Sign contract on house, pending approval on construction loan. (after loan's approved, 10% down payment on house)
  Provide bank with all necessary building project information they need for appraisal (Sunrise will help with this) 

• WEEK 6-9 Appraisal begins and is completed

• WEEK 10 Close on construction loan
  Place down payment on / order house

Manufactured Home Financing

Depending on whether a manufactured home is classified as personal property or real property determines the type of financing available to you. Because manufactured homes are often placed in mobile home parks and are often bought without tying it to land, the financial process can differ. Classifying a manufactured home as personal property, and buying a mobile home without using the land as collateral is called a chattel mortgage, and the lender puts a lien against the manufactured home is the loan is repaid. Triad Financial Services and 21st Mortgage Corporation below is two such bank that specializes in chattel mortgages. Classifying a manufactured home as real property and tying it to land you already own or are still paying for will allow you the flexibility of a conventional mortgage, and typically a better interest rate. If you’re looking for a conventional mortgage we recommend Veridian Credit Union above.