Modular Home Prices and Financing

Today's modular homebuyer has a wide array of financing options. Most mortgage companies make financing a modular home easier than ever and may even have departments or divisions specific to modular home financing. Just as you would research multiple modular manufacturers, be sure to consider all options when securing financing for your new modular home. While the financing process can vary slightly from company to company, many new modular home loans are construction-to-permanent loans that follow a general template similar to any new home purchase.

Financing and the Cost for Custom Modular Homes

During the financing process, homebuyers can expect to proceed through the loan application and underwriting stages just as they would for any other new home purchase. The appraisal process is also similar; in fact, a home appraiser is not limited by construction type when determining the value of your home. Comparables to your new home may likely be similar site-built homes with comparable square footage and design features.

The Costs of Building a Modern Modular House

When your modular home is being constructed, money is disbursed to the borrower and the builder/contractor in the same manner, as it would be during any new home construction process. During new home construction, the borrower will typically make interest-only payments to the lender on the funds as they are disbursed. This is one of the greatest advantages of modular housing because the construction time frame is reduced during the financing process. Additionally, modular-friendly lenders will offer special funding options upon the scheduled delivery of the modular units to the building site.

Mortgage Loans and the New Home Construction Process

If you have a construction-to-permanent mortgage, your lender will send a modification package to convert the loan after your home is constructed and the final home inspection is complete. Once the mortgage is closed and the closing costs are paid, you officially own your new modular home and begin making regular mortgage payments.

More Information on the Cost for Modular Homes

Modular home prices vary, and depend on the floor plan you choose for your modular house. In addition, we sell our homes to a network of independent builders, whose finish work ultimately determines the final contract price of each home. While we do not distribute price lists, we do understand the costs of building a house, and can recommend several modular-friendly home lenders.

Finance Calculators

Affordability Calculator     |      Monthly Payment Calculator

Kristina Albright Lancaster, PA 17601 888-539-1160 ext. 7096 kalbright@mtb.com

Get Pre-Qualified Today!