VA Loan Criteria for Modular Home

A criteria or guideline is always given whenever the construction of a modular home is financed by a lender or bank. The following criteria pertains to the criteria when applying for a VA loan for modular home construction.

Modular Home must be Classified as Real Property

It’s possible for modular homes to be classified as a vehicle, or personal property, instead of real property. When the home is transported to the site, it needs a vehicle’s license to travel upon public roads, much like a travel trailer would.

Modular Home must be Affixed to a Permanent Foundation

According to the VA lender’s handbook, the modular home can’t simply be left on the wheels it was transported on. It must be placed on a permanent foundation.

A foundation not only supports the weight of the modular home, but also helps the structure withstand strong wind. Without a good foundation, the home could topple. In some areas of the country, VA even requires hurricane ties to be installed on the home per local code.

Conforming to Minimum Property Requirements

According to the VA handbook, the modular home must be at least 10 feet wide and 400 square feet if a single wide, or 20 feet wide and 700 square feet if a double wide to be eligible for financing. There is no age restriction for the manufactured home.

Beyond manufactured home-specific requirements, VA sets forth general Minimum Property Requirements for any home that is financed with a VA loan. The overall goal of MPRs is to ensure that the veteran is buying a home that is livable and free from major defects.

Conforming to Local Building Codes

Counties, cities, and states have building codes that all structures must adhere to. For example, a county may require a certain amount of insulation in the home, or various standards for electrical wiring. The manufactured home will have to adhere to these standards as well.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

FAQ about VA Loan for Modular Home

There are a number of frequently asked questions that concern the VA loan. Legendary Homes Inc of southern Michigan gives you some of these questions with their corresponding answers;

How much is the guaranty?

Veterans Affairs will guarantee up to 50 percent of a VA loan up to $45,000. For loans between $45,000 and $144,000, the minimum guaranty amount is $22,500, with a maximum guaranty, of up to 40 percent of the loan up to $36,000, subject to the amount of entitlement a veteran has available. For loans of more than $144,000 made for the purchase or construction of a home or to purchase a residential unit in a condominium or to refinance an existing VA-guaranteed loan for interest rate reduction, the maximum guaranty is the lesser of 25%. This figure will change yearly.

Is $36,000 the biggest loan a veteran can get?

No. You may generally borrow up to the reasonable value of the property or the purchase price, whichever is less, plus the funding fee, if required. For certain refinancing loans, the maximum loan is limited to 90 percent of the value of the property, plus the funding fee, if required.

What is the maximum VA loan?

There is no maximum VA loan, except that the loan cannot exceed the lesser of the appraised value or purchase price, plus VA funding fee and energy efficient improvements, if applicable. However, lenders usually won’t make a no-downpayment loan larger than $417,000 ($625,500 in Alaska, Hawaii, Guam, and U.S. Virgin Islands) due to secondary market limitations.

Must the VA loan be repaid?

Yes. A VA guaranteed loan is not a gift. It must be repaid, just as you must repay any money you borrow. The VA guaranty, which protects the lender against loss, encourages the lender to make a loan with terms favorable to the veteran.

Does VA make any loan directly to eligible veterans?

Yes, but only to Native Americans on trust land or to supplement a grant to get a specially adapted home for certain eligible veterans who have a permanent and total service-connected disability(ies).

How are VA loans processed?

There are two ways a lender may process VA home loans: “prior approval” or “automatic.” When the loan is processed on a prior approval basis, the lender takes your application, requests VA to appraise the property, and verifies your income and credit record. All this information is put together in a loan package and sent to VA for review. If VA approves the loan, a commitment by VA to guarantee the loan is sent to the lender. The lender then closes the loan and sends a report of the closing to VA. If the loan complies with VA requirements, VA issues the lender a certificate of guaranty.

In automatic processing, the lender still orders an appraisal from VA, but has the authority to make the credit decision on the loan without VA’s approval. The biggest difference between prior approval and automatic processing is the time saved by avoiding the need to await VA’s approval before loan closing.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing, VA Loan

How to Build a Modular Home in Michigan with a VA Loan

Posted by Legendary Homes on April 1, 2015 in Modular Homes, Mortgage Lenders with No Comments Yet

Building your dream home is a possibility with a VA modular home loan. But it isn’t always an easy road.

This no-down payment program allows qualified borrowers to use their VA entitlement to obtain a mortgage for new construction. The issue is that it can be challenging for VA borrowers to locate a lender willing to issue a construction loan. The VA doesn’t actually make home loans; rather, it basically insures them. It’s up to individual VA-approved lenders to determine what kind of loans they’ll issue.

What’s increasingly common is that veterans need to secure a modular home construction loan from a builder or a local lending institution. As the home building process wraps up, qualified borrowers can then refinance that short-term construction loan into a permanent VA mortgage.

Getting a Modular Home Construction Loan

Because it’s tough to find VA loan lenders out there willing to pay the up-front costs of construction, many veterans wind up using a home builder or a local financial institution. That can present hurdles like a down payment, which may be required to secure a construction loan. You can and should talk with as many builders and local banks as possible. Look for the best possible terms out there in terms of down payment, closing costs and more.

Some builders may have programs or deals especially for veterans and military families to build a modular home through VA loan. Be sure to do your homework on the company and ensure it’s a legitimate builder with a track record of success and satisfied homeowners.

You can also check with lenders to see if they’ll actually do a true VA loan, where the lender pays draws to the builder as the project progresses. But know going in that you might struggle to locate one. Like so many other lenders, Veterans United does not make construction loans to build new homes.

You’ll have considerably better luck locating VA lenders willing to turn that short-term construction loan into a long-term VA loan. This is something Veterans United can help you with.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

Pros and Cons of Modular Home Financing

Posted by Legendary Homes on March 29, 2015 in Modular Homes, Mortgage Lenders with No Comments Yet

Financing a modular home has a balance of benefits and drawbacks. But the positive side of purchasing a modular home overshadows its negatives. These factors bring forth the idea that I should recommend modular construction.

Pros of Financing a Modular Home

Modular Home Price

Modular homes undergo most of their construction in a climate-controlled factory where weather events and materials shortages are less likely to occur. This reduces the cost of the home and often speeds up its construction. Modular-home builders often have in-house inspectors that ensure quality construction throughout the build, which also helps reduce the price.

More Financing Options

Modular homes come with an additional avenue of financing that other homes can’t access: financing through the manufacturer. A modular home will qualify for standard home financing and mortgages, but sometimes the manufacturer will offer a better deal. Always read loan papers carefully, and it’s perfectly OK to ask your agent about financing decisions.

Customization Option

This housing option comes in a plethora of styles and offers a diversity of design features. Whether you’re looking for a log cabin or classic colonial style, you can find a modular home that suits your taste. Although there are some limitations in terms of floor plans, you can add bonus rooms, garages and even basements in some cases.

Cons of Financing a Modular Home

Payment Timeframe

Unlike stick-built home construction, you need to pay a modular home builder in full before the home is complete. Most require you to make a series of payments as construction progresses. This means financing needs to be in place beforehand and may come in the form of a construction loan that the builder will convert to a mortgage after the home is built.

Land Costs

You’ll need to own the land where your modular house will be placed. Many clients use real estate agents to help them find the perfect lot. You’ll need to own the land before you can order a modular home. Sometimes the cost of land plus the cost of the home can come as a shock. If you’re moving into a neighborhood, make sure your agent verifies that the neighborhood doesn’t have any restrictions on modular homes.

Zoning Restrictions

Depending upon the location, you may not always be allowed to set up a modular home where you want. Some developments only want site built homes, which can put restrictions on where your home is located. In areas that are prone to natural disasters like hurricanes, it can be an issue to meet building codes because they don’t typically have the same support as traditional housing.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

Leading Lender for Modular Home Construction Loan in Michigan

Posted by Legendary Homes on March 28, 2015 in Modular Homes, Mortgage Lenders with No Comments Yet

Are you interested in a loan for a modular home, including a dream home or second home, which involves construction and/or site development?

Premiere Home Mortgage is not only an industry-leading modular home lender, but construction lending experts as well. We can answer your questions and your retailer’s/builder’s questions so your modular home building project keeps moving smoothly from planning to final completion.

Unique Lender for Modular Home Loan

We are a unique lender of modular home loans in that we offer Construction-to-Permanent Loans that are either a one-close loan or a two-close loan depending on the financial desires and benefits for the borrower. This means with one application, you get all the financing you need in one easy process whether you desire a one-time or a two-time close.

Services Offered

Premiere Home Mortgage is a modular “friendly” lender because of our over 20 years of experience. Aside from the choice of either a single close or two-close construction to permanent loan, we also offer a range of financing options, including:

- Down Payments as low as 3.5%
- Modular or Manufactured
- Gifts or land equity allowed for down payments
- No payments during construction
- FICO score as low as 620

Fast approvals and one-on-one customer service throughout the process.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

How Legendary Homes Inc. Assist in Ditching Your Modular Home Financing Misery

Posted by Legendary Homes on March 25, 2015 in Modular Homes, Mortgage Lenders with No Comments Yet

If you have been worrying about financing the construction of your modular home, you need not worry anymore. Legendary Homes Inc. in Michigan helps those in need of modular home financing along with Premiere Home Mortgage.

Modular Home Financing MI

Modular Home Financing Process

The way a modular home is financed is in a two-part process. First, there is a construction loan. This loan is typically an interest only loan. This means that while you are in the construction phase you only pay interest on your loan, you do not have to pay down the principal amount. The amount of the loan you are paying interest on is the amount of money you have used, to date, from your loan to pay for your construction.

In the end, financing is financing, whether you are buying a conventional home, financing a stick built home, or financing a modular home construction project. That being said, borrowing large sums of money can be nerve-wracking. The process of getting approved for a loan can be anxiety provoking if you haven’t been through it before. Getting educated on the process makes everything easier to understand, easier to navigate, and easier to handle.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

Lenders for Modular Home Financing in Michigan

Posted by Legendary Homes on March 24, 2015 in Modular Homes, Mortgage Lenders with No Comments Yet

In Michigan securing the best modular home financing can be a challenge. Very few lenders will provide progress payments for modular construction. That is why Legendary Homes Inc. has simplified the process and can offer clients the option to defer progress payments until the construction is complete, saving you thousands in interest costs. We work with top lenders in Michigan to turn your dream modular home into reality.

Partners in Modular Home Financing

Our lending partners at Premiere Home Mortgage have access to some of the best options available for modular home financing in MI. The focus of our partnership is helping those individuals and families that are buying a home in need of renovation, purchasing a new modular or manufactured home or remodeling their current residence. We offer loans that, most mortgage companies do not tender and that few can provide with excellent customer service.

Pre- Qualify in Modular Home Financing

You can get pre-qualified to any of the many lenders who do modular construction loans. There are lenders who specialize in modular construction loans and have features about their construction loans that are important such as one closing and up to 95% modular home financing including land.

Please keep in mind when choosing a lender that the modular home is to be paid upon delivery to your site, not upon installation to the foundation. We recommend you are in a 12 month construction loan starting the day you receive your building permit. We also recommend using one of our referred lenders as they are familiar with our construction process, which makes your project run smoother for all involved.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

Terminologies You Need to Learn about Modular Home Financing

Posted by Legendary Homes on December 26, 2014 in Modular Homes, Mortgage Lenders with No Comments Yet

Basically, you shop around for the terms and conditions about modular home financing before you dwell on the action phase. This would include looking for a builder or contractor that best suit your situation and requirements.

Appraisals

An appraisal will be needed at the approval phase and when your loan converts. Your lender may add these fees to your closing costs, roll them into your loan, or require you to pay them (ask you lender).

Down payment

Typically, 20% is required when applying for a modular home loan. Some lenders have different programs that require less of a down payment, but they will cost you more in interest.

Deposits

The ome modular home manufacturer and/or general contractor will require at least a 10% deposit. Some may agree to wait until you close. If you do pay them a deposit, your lender will consider this as part of your down payment.

Inspections

All inspections during modular home construction are your responsibility. Inspectors’ fees vary by region and individual businesses, but most inspectors charge $100- $150

Land (or finance)

You may already own your land. If not you will need to either purchase it out-right or finance it. You may finance it separately or as part of your construction loan package.

Building Permit for Modular Home

This will most likely be included in your builder’s contract. If you are acting as your own general contractor, you will need to pay for this. Building permits vary in costs, even within the same state (check with your local building department).

Title for Land

This should be included as part of the financing of the land. If you own the land already, or you are paying for it, you will need to get a title/deed

Closing costs and points

Closing costs vary between lenders and loan programs. Points will also vary, but they are based on a certain percentage of your loan.

Conversion fees

Check with your lender. They should be less than closing costs, but this will vary by lender.

Getting educated on the process makes everything easier to understand, easier to navigate, and easier to handle.

In case you still have question about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile you can check our modular home price sheets by signing up to our blog

Topic: Modular Home Financing

Legendary Homes Inc. Can Assist You in Your Modular Home Financing Woes

Posted by Legendary Homes on December 25, 2014 in Modular Homes, Mortgage Lenders with No Comments Yet

If you have been worrying about financing the construction of your modular home, you need not worry anymore. Legendary Homes Inc. in Michigan helps those in need of modular home financing along with Premiere Home Mortgage.

Modular Home Financing Process

The way a modular home is financed is in a two-part process. First, there is a construction loan. This loan is typically an interest only loan. This means that while you are in the construction phase you only pay interest on your loan, you do not have to pay down the principal amount. The amount of the loan you are paying interest on is the amount of money you have used, to date, from your loan to pay for your construction.

Choosing a General Contractor

Over the course of the project, you will spend a significant amount of time with your chosen general contractor, so it’s best to find someone you get along well with. A contractor or modular home builder that is a good fit to your project is a builder that is familiar with, and geared toward, building the type of home you are seeking to have built. If you want an entry level home for the best price possible, then a builder who usually builds very high end homes for people with unlimited budgets is probably not a great fit. Conversely, if you are seeking to have a complicated high end custom home built and require constant attention and unlimited options, you may not want to hire a builder who typically builds simple entry level homes. Good builders are flexible in what they can build, but it’s best to try to find a builder who regularly builds the type of home you want. This will help you get the best value combination in price, service, options, etc.

In the end, financing is financing, whether you are buying a conventional home, financing a stick built home, or financing a modular home construction project. That being said, borrowing large sums of money can be nerve-wracking. The process of getting approved for a loan can be anxiety provoking if you haven’t been through it before. Getting educated on the process makes everything easier to understand, easier to navigate, and easier to handle.

In case you still have question about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile you can check our modular home price sheets by signing up to our blog

Topic: Modular Home Financing

Where to Find Lenders for Modular Home Financing in Jackson, Michigan

Posted by Legendary Homes on December 24, 2014 in Modular Homes, Mortgage Lenders with No Comments Yet

Modular Home Floor Plan

Modular home is built in sections in a factory setting, indoors, where they are never subjected to adverse weather conditions. The sections move through the factory, with the company’s quality control department checking them after every step. Finished modules are covered for protection, and then transported to your home site. They are placed on a pre-made foundation, joined, and completed by your local builder.

Modular Home Financing

In Jackson, Michigan securing the best modular home financing can be a challenge. Very few lenders will provide progress payments for transportable homes and modular home construction. That is why Legendary Homes Inc. has simplified the process and can offer clients the modular home financing options to put back progress payments until the construction of a modular home is complete, saving you thousands in interest costs.

Our lending partners at Premiere Home Mortgage have access to some of the best options available for financing modular homes in MI. The focus of our partnership is helping those individuals and families that are buying a home in need of renovation, purchasing a new modular or manufactured home or remodeling their current residence. We offer loans that most mortgage companies do not tender and that few can provide with excellent customer service.

You can get pre-qualified from any of the many lenders who do modular construction loans. There are lenders who specialize in modular construction loans and have features about their construction loans that are important such as one closing and up to 95% financing including land.

Please keep in mind when choosing a lender that the modular home is to be paid upon delivery to your site, not upon installation to the foundation. We recommend you are in a 12 month construction loan starting the day you receive your building permit. We also recommend using one of our referred lenders as they are familiar with our construction process, which makes your project run smoother for all involved.

In case you still have question about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile you can check our modular home price sheets by signing up to our blog

Topic: Modular Home Financing

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Mon through Fri 9:30 am to 5 pm and Saturdays 10 am to 2 pm.

We are available other times by appointment

Please call, text or email Todd to set up a time to meet 517-206-2435

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Legendary Homes Inc
10197 S Meridian Rd US 127
Clarklake, Mi 49234
(517)206-2435
http://LegendaryHomesInc.com
Todd_Rutledge@LegendaryHomesInc.com

Located in Jackson County Michigan

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Hours

Mon through Fri 9:30 am to 5 pm and Saturdays 10 am to 2 pm.

We are available other times by appointment

Please call, text or email Todd to set up a time to meet 517-206-2435

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Modular Home must be Classified as Real Property

Modular Home must be Affixed to a Permanent Foundation

Conforming to Minimum Property Requirements

Conforming to Local Building Codes

Topic: Modular Home Financing

How much is the guaranty?

Is $36,000 the biggest loan a veteran can get?

What is the maximum VA loan?

Must the VA loan be repaid?

Does VA make any loan directly to eligible veterans?

How are VA loans processed?

Topic: Modular Home Financing, VA Loan

Getting a Modular Home Construction Loan

Topic: Modular Home Financing

Pros of Financing a Modular Home

Cons of Financing a Modular Home

Topic: Modular Home Financing

Unique Lender for Modular Home Loan

Services Offered

Topic: Modular Home Financing

Modular Home Financing Process

Topic: Modular Home Financing

Partners in Modular Home Financing

Pre- Qualify in Modular Home Financing

Topic: Modular Home Financing

Appraisals

Down payment

Deposits

Inspections

Land (or finance)

Building Permit for Modular Home

Title for Land

Closing costs and points

Conversion fees

Topic: Modular Home Financing

Modular Home Financing Process

Choosing a General Contractor

Topic: Modular Home Financing

Modular Home Financing

Topic: Modular Home Financing

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