Financing the Construction of Modular Home Addition
It is a great way to build a modular home addition. You get the quality and price advantage that modular homes are known for along with faster build time. However be reminded that financing the construction of a modular home addition is particularly your concern during the planning phase.
To help you in the financing of modular home addition, here are few tips from Legendary Homes Inc.:
Deal with the General Contractor
To build a modular home addition, look for contractors who offer affordable construction with high quality turnaround. You need to pay the dealer for the modules and the general contractor for their services. Discuss your budget with your chosen contractor so the process of construction is continuous and results in better quality.
Obtain Modular Home Addition Loan
When you use a lender to build a modular home addition, you obtain a “construction loan,” which is a short-term loan usually of four- to twelve-months’ duration. The loan provides for a series of payments as work is completed.
Although you will still need to obtain a mortgage, you will not need to secure a construction loan if the dealer or general contractor finances the construction. They are more likely to do this if the dealer is completing the general contractor work, but especially if the dealer or general contractors own the land. Ownership of the land and responsibility for the construction tasks gives them greater control of the project and reduces their risk should you decide not to purchase the finished home. When you purchase a modular home that is funded in full by the dealer or general contractor, you are in a sense purchasing an already existing home. In fact, you will not take ownership of it until you pay them when they are done. That is why they are likely to require you to provide evidence that you have secured a mortgage or have the personal funds to pay for the finished modular home addition. Since paying for the modular home addition after it is completed does not require you to make a series of payments, it eliminates the steps discussed below.
Expect Certain Surprises
No matter how vigilant you are, building a modular home addition always produces a few surprises. Unfortunately, these surprises often result in additional expenses. When they appear you might be tempted to blame someone, but it is not possible for everyone to foresee everything.
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 Addition
