How Do You Finance A Modular Home?
Though less expensive than stick-built homes, most people will still need to finance a modular home. There is a bit more risk involved in buying a modular home than in purchasing an existing home, so lenders typically loan the money in stages. This is made easier by financing from a modular dealer or through a construction to permanent loan from the bank. Both types of loans require the same general steps. Step 1 Talk to the lender about preapproving the loan. Before you decide on building a modular home, you need to be sure you can pay for it. Preapproval will tell you how much you can afford each month. Typically, lenders do not lend more than 30 percent of your monthly income. Step 2 Choose a modular home in your price range. If you’ll be building the home on your own land, be sure to factor in the cost of the land. Some modular dealers also allow you to build on their land. If you choose this, you’ll have to pay rent on the land, but you will not have to pay property taxes on the l
