The Magic of Modular Home Financing in Michigan

When financing modular home construction, you will need to learn what is its magic. Many have been looking for the benefits of modular financing but only a few understands the process. Others also have difficulty distinguishing modular home financing from stick- built financing. So to assist you in deciphering what is modular financing, here are the summary of the financing process and its features;

Modular Home Financing Process

During the modular construction phase, you will typically be paying interest only on the money that you have used thus far in the process. As work is progresses, more money is paid out and your payments will increase accordingly. When modular home construction is completed and you have obtained your certificate of occupancy, the loan would then be converted into a permanent mortgage with principal and interest payment. In addition to these modular home financing options, some lenders offer the choice to also convert the land purchase loan into the mortgage with the construction loan. That way one bank finances it all. Most lenders allow a time period of up to one year to complete the modular home construction.

Difference Modular Home Construction Loan and Traditional Home Loan

The major difference between a regular construction loan and a modular home 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 modular home, and the payment upon delivery of the modules. The cash- on- deposit payment required by the modular home manufacturer at delivery once caused a snag with the lenders. Lenders did not want to pay until the modular 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 construction loans to avoid any issues around this payment.

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 Get Money for Modular Home Construction

Modular home construction needs to be funded. But what are the resources you need to check to execute the building process of your modular home?

Basically, there are three resources for consumers who wanted to build a modular home. These resources for modular construction are the private funds, lending institution, and the general contractor or dealer loan.

Private Funds of Modular Home Buyer

If you are fortunate enough to have access to enough private funds to build your own modular home, you probably won’t be reading this page. However, you may not know that you can use the equity in your current home to build a new home. If you are already a homeowner, and you have enough equity in your current home, you may be able to take out a home equity loan to pay for the construction of your home.

Lending Institution for Modular Home Construction

You may borrow directly from a lending institution, which specializes in modular home construction. Lenders provide loans, for modular home construction, that are very similar to conventional stick built home construction loans. There are a few options for how to best deal with your personal circumstances. You may want to get a loan to purchase the land only. This would be useful if you are using other sources to build your home, but need money for the land. You may just want to buy the land, and then take some time to decide on how you want to proceed with construction and/or save for construction. If you need to finance the construction, you will need a construction loan, and then you will need a mortgage, once the modular home is complete.

General Contractor/ Modular Home Dealer Construction Loan

The general contractor or modular home dealer loan is a loan for the construction of the home. The modular home dealer is more likely to finance the loan if he is the contractor, and especially if he owns the land on which the home will be set. This would make it easier to take possession of the modular home should you be unable to pay for it. Once the construction is completed, you would need to obtain a mortgage. This would be a more conventional purchase. The lender would pay off the construction loan and issue you a mortgage, as with any other home purchase.

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

Modular Home Financing: Cost of a FHA Reverse Mortgage

Posted by Legendary Homes on July 17, 2014 in Modular Homes, Mortgage Lenders with No Comments Yet

The Federal Housing Administration or FHA has developed a program called the FHA reverse mortgage that helps senior citizens own their home. This program was realized because seniors were selling their homes, buying smaller, more affordable homes and then taking out reverse mortgages on the new properties. That meant they were paying closing costs twice — first on the real estate closing, and a mortgage if they needed one to make the purchase, and then again when they switched to a reverse mortgage.

Modular Home

But now, the new FHA reverse mortgage for Purchase Program allows seniors to buy a home directly with a reverse mortgage — paying closing costs only once, says Bill Glavin, special assistant to the commissioner of the FHA. A sale of an existing home is not necessary and is not part of this transaction.

The new FHA reverse mortgage program allows using a reverse mortgage to buy a single-family home, a condo or a small multifamily residence, and allows them to convert some of the equity in their existing home to cash. They never have to make a single payment. Instead, they would collect monthly payments out of the equity on a tax-free basis as long as the home serves as their principal residence. If they did not sell their previous home, they could get additional income out of renting that property.

Under the plan, you can choose to take the money either in monthly payments, as a lump sum, a combination of the two or even in a line of credit that you can access whenever you need cash.

FHA Reverse Mortgage Costs

You can pay for most of the costs of a FHA reverse mortgage by financing them and having them paid from the proceeds of the loan. Financing the costs means that you do not have to pay for them out of your pocket. On the other hand, financing the costs reduces the net loan amount available to you.

The FHA reverse mortgage includes several fees and charges, which includes: 1) mortgage insurance premiums 2) third party charges 3) origination fee 4) interest and 5) servicing fees. The lender will discuss which fees and charges are mandatory.

Mortgage Insurance Premium
You will incur a cost for FHA mortgage insurance. The mortgage insurance guarantees that you will receive expected loan advances. You can finance the mortgage insurance premium as part of your loan.

You will be charged an initial mortgage insurance premium at closing. The initial MIP will be .5 percent or 2.5 percent, depending on your disbursements. Over the life of the loan, you will be charged an annual MIP that equals 1.25% of the mortgage balance.

Third Party Charges
Closing costs from third parties can include an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit checks and other fees.

Origination Fee
You will pay an origination fee to compensate the lender for processing your FHA reverse mortgage. A lender can charge a HECM origination fee up to $2,500 if your home is valued at less than $125,000. If your home is valued at more than $125,000 lenders can charge 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees are capped at $6,000.

Servicing Fee
Lenders or their agents provide servicing throughout the life of the FHA reverse mortgage. Servicing includes sending you account statements, disbursing loan proceeds and making certain that you keep up with loan requirements such as paying real estate taxes and hazard insurance premium. Lenders may charge a monthly servicing fee of no more than $30 if the loan has an annually adjusting interest rate and $35 if the interest rate adjusts monthly. At loan origination, the lender sets aside the servicing fee and deducts the fee from your available funds. Each month the monthly servicing fee is added to your loan balance. Lenders may also choose to include the servicing fee in the mortgage interest rate.

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: FHA Reverse Mortgage

Local Banks Offering Manufactured Home Financing in Jackson, Michigan

Posted by Legendary Homes on June 13, 2014 in Modular Homes, Mortgage Lenders with No Comments Yet

What are the banks that grants manufactured home financing in Jackson, MI? How does one start applying in their home loan services?

Financing a Manufactured Home

There are a number of local banks that assist home buyers in realizing their dreams. Most of these banks offer different services for their clients. Some are specializing in manufactured home financing.

Local banks specializing in manufactured home loans are often known to partner with excellent home builders in the neighborhood. They typically called upon by home builders whenever their clients need assistance to finance the purchase or construction of their home.

Manufactured Home Financing in Michigan

Michigan is one of the states that house lots of banks and mortgage lenders offering manufactured home financing. These lenders have their distinct targets in providing loans.

In Jackson, the known local bank that work with manufactured home or modular home financing is County National Bank or CNB. Known for its excellent banking since 1934, CNB has been awarded the recognition to help those in need especially in home financing in Southern Michigan. The bank has various services that aid its clients to a better future. But because of the increasing demand of manufactured homes in the county, they are now helping buyers of this housing facility.

CNB is among the leading manufactured home loan lenders that serves following quality and excellence. They determine what is the right manufactured home loan is right for you even if you are purchasing an existing manufactured home or building your own abode in a private or rented lot. To serve many people, they offer the lowest manufactured home financing rate.

If you find this post helpful, please subscribe to our blog. You can get a free copy of the modular home price sheets from us as well.

Topic: Manufactured Home Financing

How to Successfully Passed the Manufactured Home Financing Process

Posted by Legendary Homes on June 13, 2014 in Modular Homes, Mortgage Lenders with No Comments Yet

The FHA has been ensuring the manufactured home financing process is done accordingly.The agency does not provide the money for the loan, rather they see to it that the loan is insured. They approve the lenders to give the loan to eligible borrowers, thereof.

Manufactured home financing is often feared by most lenders and borrowers because of the home’s depreciating value. Some even finance the buying and construction process with their own money. But there are lenders who specializes in this type of home financing. Usually they work together with the home builder in your locality or in a location where you wanted to place your manufactured home.

To be approved successfully by the manufactured home financing lenders, borrowers must know first what are the key attributes of an eligible manufactured home.

Meet the Model Manufactured Home Installation Standards

The Model Manufactured Home Installation Standards is the lowest standards implemented for the installation of manufactured homes. It include methods for performing specific operations or assembly of a manufactured home that will not take the home out of compliance with the Manufactured Home Construction and Safety Standards. It is the basis of manufacturers during the construction process as it leads to the production of quality built manufactured homes. The house must also be ensured to protect its residents and its neighbors against accidents or unwanted circumstances that may cause harm.

One- Year Manufactured Home Warranty

For the manufactured home to be considered by lenders, it must be covered by a one year warranty. Manufacturers are usually offering this time frame to most of their manufactured homes. The warranty covers the repair and renovation of any parts of the home seen within a year after its completion. This must be ensured by home owners beforehand with their manufacturers or home builders if they are wary about home warranty and insurance.

Placed in a Site Qualified for Manufactured Home Financing

Before applying for manufactured home financing, check the location of your home. Is it situated in a dangerous soil or near a cliff? Does your location frequently visited by extreme weather disturbances?

Some lenders are in doubt to approve your loan application when your manufactured home is located in a permanent or private owned land that is deemed to threaten the structure of your house. They fear that they may waste their support if bad circumstances happen. Your location also put your home insurance into a disarray.

If you find this post helpful, please subscribe to our blog. You can get a free copy of the modular home price sheets from us as well.

Topic: Manufactured Home Financing

How To Have A Successful VA Loan Approval for a Modular Home

Posted by Legendary Homes on May 19, 2014 in Mortgage Lenders with No Comments Yet

A modular home is built to provide security and protection to its home owners. Because of the recent economic issues, it is now the alternate way to own a home. Modular homes are intended for those who have no capacity to pay in cash. And today there are a number of lenders who are specializing in prefabricated homes.

In every modular home financing, there are certain requirements that a home buyer must prepare. These requirements are the fuel to have a successful home loan such as the VA loan. They will be useful in achieving the construction and completion of your dream home. So here are the requirements to have your VA loan for modular home approved.

Requirements To Get the VA Loan Approved for Modular Home

Military Service Requirements

Modular Home

A veteran is considered eligible for a VA loan if he has at least 90 days of active duties and is discharged honorably during war time; and during peace time a veteran must have at least 181 days of continuous duty and also discharged honorably. Veterans who have obtained disability may not require to render 90 days of duty. And for those who are still in the field, they can apply for the VA loan provided that they have served at least 90 days during the war and 181 days in normal days.

Modular Home Property Eligibility

The VA loan handbook states that in order for the loan to be approved the property must be among the list of eligible properties. Together with single- family homes, VA- approved condos, and other housing properties, modular homes are one of the listed eligible properties. To have a proof, the home buyer needs to go the Certificate of Eligibility for a VA loan which establishes the military’s approval for eligibility, not for the loan itself. VA Form 26-1880 or the Request for Determination of Eligibility and Available Loan Guaranty Entitlement, then it goes to lenders when you request the loan.

VA Loan Lenders

In a VA loan, the home buyer must look for a VA approved lender, who usually grants traditional mortgages because they perceive modular homes as conventional homes. The lender must be VA approved because when the home buyer can’t pay for the loan anymore. The VA will cover as much as 80 percent of the principal loan. There are numerous institutions o companies today that are VA approved. Just ask the Veterans Affairs.

Income and Credit Qualifications

Income and credit information of the modular home buyer is also evaluated during the application of a VA loan. The buyer must meet the credit score lay down by the lender. And in some cases, VA intervenes to lower the credit qualifications and suggests that the credit-to-income ratio must not be higher than 41 percent. If a home buyer has been known how to have a bankruptcy, he must wait for two years before he can apply for the VA loan. Sustainable income and low credit score will be asked once you apply for the loan after two years.

VA- based modular homes are subject to appraisal. Veterans Affairs and the lender will have to check and evaluate the quality of the dwelling that is built. Moreover, are reminded that a VA loan is not qualified to have mortgage insurance

If you find this post helpful for your future home, you can now subscribe to our blog, where information pertaining to everything modular is given to you for free, and you can also get the free modular home price sheets.

Topic: Modular Home

Everything You Need to Know About Manufactured Home Insurance

Posted by Legendary Homes on May 18, 2014 in Modular Homes, Mortgage Lenders with No Comments Yet

What is manufactured home insurance? What are covered by the insurance policy?

Everything You Need to Know About Manufactured Home Insurance

Two Story Manufactured Home

A manufactured home is a substitute way to own a home in the United States. Most Americans choose this type of dwelling because of its numerous benefits. According to the Manufactured Housing Institute, manufactured homes make up more than 10 percent of the total housing in the US. So it is only appropriate for home owners to have their homes insured.

A manufactured home insurance is a contract between an insurance company, a home buyer and in some cases, home builder. In this contract protection against damages is incurred. It gives confidence to a home owner that he will not have huge losses when major destruction occurs to his home.

Scope of Manufactured Home Insurance

Manufactured home insurance is a protection against unwanted phenomena that may moderately or entirely damage the home. It is done in order to ensure that losses to the property will be paid off after a disaster of major accident happens. Fire, flood and any kind of storms are one of the natural causes of damages to the manufactured homes. They are the first place set of reasons why home owners apply for a home insurance. Burglary and vandalism are thought to be to e included in a manufactured home insurance. Some manufactured insurance policy also added liability coverage to persons who became injured within the property.

Manufactured Home Insurance Problems

Typically, manufactured home insurance covers the home and its entire structure. Repair costs are being shouldered by the insurance policy following a minor or major damage. Sometimes reconstruction of the damaged major area is incorporated into the policy. Personal property protection, which shields against damage of loss of personal items, is also included as part of the manufactured home insurance. Additionally, medical protection for those hurt inside the property is part of the things covered by the manufactured home insurance. It ensures to pay the medical needs of any person injured when inside the house.

Discounts for Manufactured Home Insurance

Just like other insurance policy, companies offering manufactured home insurance give discounts to home owner. Some of the most common discounts are original owner discount, multi- policy discount, and senior discount. The original discount gives a rough saving of up to five percent to home owners; while the multi- policy discount grants up to fifteen percent. Senior discount is why those who are 55 years old and older. This discount provides up to ten percent savings to a home owner.

Other discounts provided in the manufactured home insurance are home safety devices discount and fire- resistant discount. Both discounts have fifteen percent savings.

If you find this post helpful for your future home, you can now subscribe to our blog, where information pertaining to everything modular is given to you for free, and you can also get the free modular home price sheets.

Topic: Manufactured Home

Understanding the Modular Home Financing: Options and Decision Making

Posted by Legendary Homes on May 10, 2014 in Modular Homes, Mortgage Lenders with No Comments Yet

Modular home financing is fast becoming an alternative choice for buyers. It was found that five to ten percent of all houses in the United States are modular houses. Manufacturers of this type of dwelling give their utmost service to provide assistance to home buyers in the entire duration of the construction process. And one of the services they provide is guidance in modular home financing.

It is substantial for the home buyer to be familiar with all aspects of modular home financing before seeking a mortgage provider. This will help during the decision process on who to get to when applying for the loan.

Choosing the Modular Home

Two Story Modular Home by Legendary Homes

Understanding what is a modular home before discussing what modular home financing is may be the best start. Modular homes are a type of house that comprises of sections, which are constructed in an indoor and controlled environment. Once the sections are completed, they are transported to the site, and later assembled and glued by the general contractor and his team.

There are several advantages for a person when deciding to purchase a modular home. One of the honest benefits of this type of house is that it takes lesser time to construct as it is built-in a controlled factory where delays are prevented. Modular homes are inexpensive compared to the conventional house. They are further seen to have a higher resale value. Superior quality and energy efficiency are also included in the benefits of a modular home, leaving the home owner a comfortable and safe abode. Moreover, one of the important benefits for buyers in buying a modular home is that the reduced cost overruns since prefab homes come with a guaranteed price.

When seeking modular home financing, a borrower is supposed to be wise. He must conduct extensive research in securing a construction- to- permanent loan since this is a special type of housing.

Types of Modular Home Financing

Conventional Loan

Whether a person obtains modular home financing, a traditional mortgage for an existing residence or funding for constructing a site built house is part of the option. This type of financing requires an individual to have a good credit record, and those who have sold their houses in a short sale period. It is also provided for persons who have been in bankruptcy, provided they have been discharged from it for at least 3 years and have established a good credit record since then.

Construction Loan

Generally speaking, options for modular home financing are almost the same with the conventional houses. One of financing options is the construction loan. When an individual do not have the means to build a home without the use of credit, he can apply for a construction loan. Usually a construction loan is considered a line of credit by most lenders, and is more costly than the mortgage of an existing house. It helps a buyer in paying for the work made by subcontractors, some permits and fees, and the construction process itself. Architectural plans or site testing are not necessarily included in a construction loan when it covers the anticipated costs of building a modular home.

The wise decision for an individual when considering a modular home financing would be to diligently have a trusted lender who as much as possible provides the utmost service to fund the construction. If the chosen option is not satisfactory, then a home buyer should invest much time in choosing a trusted modular home builder or dealer who works with an excellent loan provider.

We are providing exclusive notes about modular home financing along with the price sheets of our model homes. Just sign- up to our newsletter.

It’s amazing news to start building your dream home, right? “We can make your dreams a reality!”

Topic: Modular Home Financing

What are the FHA Loan Requirements for Manufactured Homes?

Posted by Legendary Homes on April 28, 2014 in Mortgage Lenders with No Comments Yet

Just like every loan, FHA loan requires certain documents or fees that a potential home buyer must accomplish. These requirements are helpful for buyers who are procuring for a new home or a used home. Though, the requirements for new or used manufactured homes are the same ones, understanding of these requirements for loan eligibility is still a must.

FHA Loan: Site Requirements

The FHA is asking the home buyer requirements pertaining to the site of his manufactured home to have an approved mortgage. Essential requirement is the site must pass and meet the local building code. Second are sufficient water supply and excellent sewage system. They must be installed on the site to avoid flooding, along with the yard that must rest above the 100-year floodplain.

FHA Loan Requirements for Manufactured Homes

FHA Loan: Foundation Requirements

FHA loan requires that mobile homes are under construction and remain on a permanent chassis. In general, the agency sees to it that the manufactures home parks conform to the rules and regulations so the resulting house also performs as to what is expected in the criteria.

As per FHA standards, the home must sit on a lasting foundation, where permanent water and sewage system are installed, following the approval of the municipal building code representative. The foundation must not also lie below the 100-year flood level, a level of flooding having a 100-year recurrence interval.

FHA Loan: Construction Requirements

When constructing manufactured homes, manufacturers ensure that they executed each step of the building process in lieu to the Federal Manufactured Home Construction and Safety Standards. The manufacturer must make sure that construction accidents will be avoided or zeroed until the completion of the house. A red certification tag is a proof that the manufacturer meets these standards, and this should be the thing a buyer must look for with the aid of the manufacturer or the dealer. Insulation is also under an obligation to have at least the minimum requirements for modular homes to prevent heat loss during seasons.

FHA Loan: Home Requirements

Since FHA loan sees manufactured homes as a house formed by one or more section; they have set a standard dimension for them. Generally, a section is less 8 feet wide and 40 feet tall; and in FHA standards, the home must at least have 400 square feet living space. This dimension is sufficient to provide adequate space for a starting family or a single individual.

Moreover, payments for appliances or furniture are not included in the FHA loan. Only the wall-to-wall carpeting and built- in appliances or furniture is allowed.

FHA loan requirements are basic. But they have been helpful in one’s decision.

“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.”

It’s amazing news to start building your dream home, right? “We can make your dreams a reality!”

Topic: FHA Loan

FHA Loan and its Importance to Manufactured Homes

Posted by Legendary Homes on April 28, 2014 in Mortgage Lenders with No Comments Yet

When it comes to manufactured homes financing, there is one agency that could help. It is the Federal Housing Administration or FHA. It is the agency that aids the people of America in building and owning their own home. It also helps in improving housing standards. Then we shall discuss the FHA and its importance to manufactured home construction.

What is FHA?

FHA is a United States government agency, which gives financial loan to approved or qualified lenders. FHA loan helps in protecting the lenders from losses related to mortgage glitch like failure of the borrower’s to pay. In simpler words, the FHA will pay for the mortgage if you fail to pay to the bank. This is then the reason why lots of people prefer this loan. But it doesn’t mean the FHA will lend you money. They will insure the bank or lender if you fail to pay.

FHA Loan

FHA loan is a loan which is intended to those who didn’t succeed in having a loan for building a conventional home. Then, it is good for the building of manufactured homes.

What is Manufactured Homes?

Manufactured homes are houses built in a factory and are inexpensive that many are choosing this kind of home. Most manufactured homes today are environmentally friendly because the materials used are eco- friendly, causing lower impact to the environment. Utility savings is also an one of the advantages of manufactured homes as it high insulation was installed. Moreover, manufactured houses are permanent, they are transportable.

FHA loan for manufactured homes has a number of advantages, and one of these is the similarity of benefits for newly constructed homes. FHA also allows 3.5 percent of the whole sale price as a downpayment to manufactured home owner. The FHA usually requires at least 640 credit score for loan applicants. These then give a potential home owner the privilege to own a home in a lesser price, thereof.

The construction of manufactured homes, aided by the FHA Loan, makes it more affordable for potential home owners. Construction costs of a new mobile house could reach up to 20 percent less nowadays. These homes are generally brand new, strong, and energy efficient. Additionally, manufacturers avoid cost overruns with newly constructed mobile home.

Do you want for more information about FHA Loan and manufactured homes?

“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.”

It’s amazing news to start building your dream home, right? “We can make your dreams a reality!”

Topic: Manufactured Homes

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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