Pros and Cons of Modular Home Financing
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.
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