Terminologies You Need to Learn about Modular Home Financing
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
