Paying for a new home out of pocket is beyond the budget of almost anyone. This makes financing the costs of your home incredibly important. But what if you want a new home without the lengthy construction involved with traditionally built homes? You can finance a modular home just as you would a stick-built home.
The Loan Process
For both traditionally built and modular homes, a would-be home buyer needs to:
- obtain your credit information
- gather key documents
- determine how much you can afford
- investigate financing options
Comparing different banks will allow a home buyer to see the range of rates they’re qualified for. This counts for both traditionally built and modular homes. Knowing what kind of interest rates you can expect and gathering quotes from manufacturers and/or contractors will let you approach buying a home with realistic expectations.
Where buying a traditionally built home deviates from what you’d need to do for a modular home is dependent on whether or not you’re buying a home that’s already built or constructing a new one. If you’re buying a pre-existing home, you won’t need a new construction loan or the accompanying financing. You can apply for FHA loans or conventional loans and move right into having a mortgage.
The loan process for stick-built and modular homes is no different, save for the fact that the construction loan will have a shorter period of time for a modular home. This allows you to move straight into a mortgage without the possibility of needing a renewal; construction loans for stick-built homes are also more difficult to find.
