Keeping up With the Different Financing Options for Manufactured Homes and Modular Homes
Have it got into you had any doubts about financing the construction of manufactured and modular homes? Worry no more because there are actually a lot of financing options when it comes to prefab housing.
Manufactured and modular home financing today gives home buyers different types of loans. These loans cover the construction, and safeguards future home owners against low quality houses. Contained in this modular financing loan are construction loans, VA loans and FHA loans. To understand these kinds of loans, let us go to know them.
Veteran Affairs Loan or the VA Loan
Modular Home in Michigan
The Veteran Affairs loan or VA loan is a loan offered by the Department of Veteran Affairs to veterans. It is a helpful loan for those who have served the country. Generally, the VA loan is granted to retired military because it requires an honorable dismissal from the military.
Construction Loan for Modular Homes
Construction loan is a form of loan given to commence the building process of modular homes. It is typically one- time close construction loans that give you the power to finance modular homes project as well as the land. This type of loan is given or approved once all necessary requirements and costs are in and the home appraisal, which determines the house’s value, is done.
When the construction loan starts paying or funding the project, the land seller is the first person to take advantage. He will be paid first so that the pre- construction process can begin. Application for permits such as the building permit and electrical permit can now be started. Usually the payment is not granted completely to the land seller.
Generally, the construction loan depends on the amount you want a drink or do not, which can also be attributed to the construction loan costs. A one- time close construction loan term is good for 4 to 6 months from the date of the construction loan funds the land seller.
Conventional Loans
Conventional loan is the typical or traditional loan applied to when a building or a house is supposed to be constructed. This type of loan is most beneficial for a buyer with an excellent credit rating since it requires you to have open credit lines and untarnished credit reputation. It is now also recommended by some dealers to those who just had a bankruptcy. Conventional loan rules and regulations will only allow a person who had a bankruptcy issue to apply at least three years after and must again have a good credit.
Moreover, a conventional loan is also granted to buyers who have sold a house in a short period of time or had a home foreclosed on. As a condition, easily sold home should have a 20 percent down payment and the house that was foreclosed must be vacant for at least two years from the date of the foreclosure.
FHA Loan for Modular Homes
The Federal Housing Administration loan or the FHA loan is a government insured loan. It was realized to help those individuals with low income, low credit and is seeking lesser downpayment. The FHA loan has more requirements than the conventional loan, which allows FHA standards to be more flexible. One of its requirements is the mortgage insurance which protects not only modular homes but also the home buyer and the home builder.
Just like the conventional loan, FHA loan allows the lender who has a bankruptcy to be funded as long as he has been cleared with bankruptcy for at least two years and he has a good credit record since the clearance. Additionally, it is also for those who have sold their home in a short sale time or foreclosed home for three years.
Interestingly no payments made during the course of construction and no additional loans are appropriate to ensure that you are going for FHA or VA construction loan. These two types of modular homes loan will finance interest for the term of construction. Meanwhile, in a conventional modular home construction loan, the buyer will be the one to pay for the interest of the funds throughout the course of the building process. No additional loans are required for the conventional loan also.
Whichever type of prefabricated homes loan you will choose, just remember to look for the right one. Select a modular home financing company that answers your needs at their utmost capabilities possible. Here at Legendary Homes, we provide assistance to our customers seeking for companies to fund their projects.
“With its superior quality, energy efficiency, strong and budget friendly modular homes, Legendary Homes is one of the trusted modular home builders around Clarklake and Jackson Michigan for over 20 years of experience now. Legendary Homes helps in site location, acquisition of permits, excavation, foundation (including Insulated Pre-Cast Foundations), landscaping, breeze ways and other services needed to complete your home. As a company that prioritizes its customers, Legendary Homes allows you to customize your home. And most importantly, we assist in modular homes financing by working with the top lenders in Michigan.”
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