Using VA Loan to Acquire a Modular Home

Modular Home and VA Loan in MichiganOut of the gate, it’s incredibly important to make this distinction: Modular homes and manufactured homes are not the same thing, at least as far as the VA home loan program is concerned.

Regardless of the home you choose, now is the time to get started on your VA home loan application. Its many advantages make home buying easier and less expensive for veterans.

Modular Home and VA Loan

Modular home construction is a different ballgame. The finished pieces remain inside of the factory and aren’t exposed to outside conditions until it comes time for transport. Depending on the look, it’s sometimes tough to tell a modular home from a traditional single-family residence. And unlike manufactured homes that must only meet a standard U.S. Housing and Urban Development (HUD) housing code, modular home loan also need to satisfy local regulations.

The process for purchasing an existing modular home is simply the standard procedure: Prequalification, Preapproval, Contract, Underwriting, Closing and House Party.

Where things can get more complicated is if you’re wanting to buy a new modular home and have it installed on a piece of land. Lenders will often consider this new construction, and that changes the complexion when you’re talking about VA home loans. It’s tough to find VA lenders out there willing to do a true $0 down construction loan.

Often, borrowers need to obtain a construction loan from a builder or a local lender, then look to refinance that short-term loan into a permanent VA mortgage once the home is ready. This is a common pathway for both stick-built and modular-new constructions.

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 to Purchase an Existing Modular Home in Michigan

Modular Home in MichiganAre you looking to buy a modular home in Michigan? Legendary Homes Inc can help you.

The process of purchasing an existing modular home in Michigan can be broken down into a few basic steps.

Look for a Property

A modular home that is for sale can be located on the local multiple listing service. On the HUD website, foreclosed properties can be separated by state, county and zip code. Selecting criteria for your area will reveal which homes are listed and actively for sale along with information such as asking price, year built and square footage. Other important details may include required repairs, eligible bidders, the as-is value and acceptable modular home financing.

Place and Submit a Bid

Once you have located a desirable property, you will need to contact a HUD approved broker to view the property and submit a bid. HUD uses an electronic bidding system that allows buyers to submit a simplified bid prior to writing a full offer. These bids must be placed only by HUD designated brokers who are listed on their web site. An electronic bid must contain information, such as your offering price, Social Security number, address and type of financing.

Conduct Inspections to the Modular Home Property

HUD typically does not make repairs to listed homes during the course of a real estate transaction, although there may be repairs they will pay for in order to bring the home to FHA minimum property standards. Any noted defects may be disclosed in the property condition report attached to the property specifications. However, you should conduct your own inspections on the modular home so that you are fully informed about any after-closing repairs you might be responsible for.

Close the Deal

Once all inspections have been conducted and you feel comfortable proceeding to closing, your lender can prepare loan documents for signing. Unless HUD has required you to use a HUD designated closing company, you can select a local closing company of your choice. In order to do this, you must sign an additional form that allows HUD to release the contract and any pertinent transaction information to the selected escrow company.

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

Modular Home FinancingFinancing 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

Modular Home and Mortgage LenderAre 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

Buying a Modular Home in Michigan with Legendary Homes Inc.

Modular Home in MichiganBuying a modular home is a fairly simple, and somewhat similar, to buying a stick-built home. One major difference is the fact that you will be going to a dealership instead of a real estate agent.

Legendary Homes Inc is here to assist you in the purchase of your modular home. We are also here to help in the construction process as we are also known to be a trusted modular home builder in Michigan.

Budget

There are a few preparations you’ll need to do before visiting the first dealership and that’s calculating how much home you can afford. Financial experts advise that a home should never cost more than 25-28% of your total monthly income after taxes. You will need to add insurance, taxes, and maintenance costs into that figure.

Features of Modular Home

While looking at modular homes you will find many options and styles available, know the features you consider most important. Do you need three bedrooms or can you go with two? Will you need the gourmet kitchen upgrade?

Knowing the features that are most important to you will help you avoid emotional attachment which often leads to modular home buyers remorse. The modular home you ultimately choose should meet most of the features you listed before you visited the first home.

Insurance, Taxes, and Extended Warranties

Some dealerships will offer to have insurance, taxes, and even extended warranties attached to the price of the modular home. Don’t do it! You will end up paying interest on the additional items which could more than double the cost. Extended warranties should be handled with caution; Some of them simply aren’t worth the price. To avoid these issues, choose Legendary Homes Inc.

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

Legendary Homes Inc Offers High Quality Modular Home at a Cheaper Price

Modular Home in MichiganIf you are working within a tight budget but still want a home of outstanding build quality, that is also energy efficient and both looks and functions well in terms of design and layout, you can achieve all that and more by purchasing a modular home from Legendary Homes Inc.

We don’t just offer the cheapest modular home. We have quality built prefab homes that answers the individual needs of our customers.

We have builders with a Grade A construction license to secure the best quality build because not every modular home builder is the same. Take a moment to check with the building authority to make sure you are buying from a reputable builder. We are also a Certified Energy Star Builder that ensure the energy efficiency and optimization of your modular home.

Factors That Make a Modular Home Affordable

The bulk purchasing of building materials, appliances, flooring and accessories results in cost savings, that can then be passed on to the homebuyer.

The modular home construction phase and the site preparation including the building of the foundation can happen simultaneously, saving time and money. This is unlike site-built homes that require the completion of one phase before the other can begin.

As modular homes are built in an optimized climate-controlled factory environment, typically by full-time staffs that are each experienced in their particular part of the process, the home buyer benefits from quality consistency as well as decreased labor time and costs.

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

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

Modular Home Financing and Floor Plan MI and Insulated Precast FoundationIn 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

Modular Home Financing in Michigan

With modular home financing, you will need to understand certain terms and techniques. Modular home companies in Michigan offer construction loans that focus in prefab housing.

Modular Home Financing and Floor Plans Jackson MI

To further understand modular home financing, it is effective to understand the difference between construction loan and a traditional home loan.

Modular Home Financing: Construction Loan and Traditional Home Loan

The major difference between a regular construction loan and a modular construction loans is the disbursement or schedule.  These are pre-arranged scheduled payments paid to your contractor and/or dealer as specific portions of work are completed.

In modular home construction, you will have two draws that will be significantly different than with stick built construction.  These will be your deposit for the modules, and the payment upon delivery of the home.  The cash- on- deposit payment required by the modular manufacturers during delivery once caused a snag with the lenders.

Lenders didn’t want to pay until the prefab home was on the foundation and inspected, but the manufacturer wanted to be paid before the house was set on the foundation.  This has been worked out with most lenders and they have measures in place to make this work for both sides.  Still, it is a good idea to make sure your lender is familiar with modular home construction loans to avoid any issues around this payment.

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

Design Options for Insulated Precast Foundation

Modular Home Precast Foundation Jackson MI, Precast ConcreteDesign options for an precast foundation can be chosen when specifying an insulated precast concrete wall panel. These options are non-composite panel design, composite panel design and partially composite panel design.

Types of Panels for Precast Foundation

Non-composite Panels

When designing a non-composite panel, the two concrete panels work independently of one another to resist any applied loads. Each concrete panels will take a portion of the load based on the proportionality of each wythe’s section modulus compared to the other wythe. There is typically a structural or load-bearing precast concrete and a non-structural or non load-bearing precast concrete. Any dead loading (gravity loading), such as self-weight or window or louver loading is transferred through the wythe connector to the structural wythe. The non load-bearing wythe is essentially “hanging” from the load-bearing wythe.

Composite Panels 

In a compositely designed panel, the two precast concretes work together to resist applied loads. A composite panel of the same thickness will be significantly stronger in flexural strength than a non-composite panel of the same thickness. The panel connector must be designed to have sufficient shear strength to transfer the horizontal shear between the two concrete panels. Composite insulated precast foundation wall panels can typically provide a thinner panel section than a non-composite insulated wall panel. However, the savings in concrete material may be at least partially offset by the additional wythe connector costs associated with making a fully composite panel.

Partially Composite Panels

Some wythe connector manufacturers will offer a product that is not 100% composite and also a connector that is not completely non-composite; these are partially composite wythe connectors. This is essentially a hybrid between the two extreme design philosophies (composite and non-composite). The wythe connector manufacturers should be consulted for assistance as to which design philosophy applies to their products.

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: Insulated Precast Foundation

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