Modular Home Financing Options
When you’re buying or building a new home, you need to find the right financing option before you begin looking for your dream home. Manufactured homes are becoming more and more popular compared to traditional home buying, but the financing process is a little bit different.
Don’t let that difference intimidate you! We’re here to make building your beautiful manufactured home a simple and memorable process. Read on to learn more about your financing options for modular homes and some tips to help you through the process.
How to Finance Land and a Modular Home
When you’re financing a modular home and land, you’ll have a slightly different process than another home buyer who is purchasing a house that was already built.
Instead of applying for a mortgage, you’ll need to apply for a construction loan first. This loan will cover the cost of labor, materials and everything that goes inside. Constructing a modular home can have much lower prices than other types of homes because the house is built at a different indoor site and then assembled at your lot.
After the construction is finished, though, that construction loan will turn into a traditional mortgage. A representative from your bank will come to your home to complete an inspection and appraisal to determine the exact value of the mortgage.
During the construction phase, you are typically only charged interest. Then, after it becomes a mortgage, you make your monthly payments over the agreed period.
With the different financing options for modular homes compared to other types of home buying, the process can seem a little bit intimidating. But, when you work with Green Diamond Builders, it won’t be!
While you’re financing your modular home, you should keep a few important things in mind. Like with any loan, you should shop around for the best rates. If you can save money during the construction phase with lower interest payments, you can put those savings toward your mortgage payments down the road.
You also need to plan for surprise costs during construction. You can avoid certain extra costs, like delays from weather, but sometimes surprise added costs do pop up. While working with your contractor, you can discuss adding an extra budget that can cover these costs.
At Green Diamond Builders, we will work with you through every step of the construction process.
Choose Experienced Home Builders
Green Diamond Builders are the experienced licensed builders you need to help get you into your dream home. Compared to other options, manufactured homes give you more customization options. With a variety of floor plans and exterior styles to choose from, you can build the perfect house. And, that home will come with a 10-year structural warranty.