Modular Housing Mortgage

Individuals who want the finer benefits of a site built home with the financial savings of a factory built home often find the compromise in modular housing. Modular housing allows homeowners to save up to 35% on the cost of a site built home by having the building materials shipped directly to their site instead of purchasing them separately. While the homeowner is still responsible for insuring that the home is built on site, they are able to save money through numerous options available in a modular housing mortgage.

There are a few facts to consider about modular home mortgages, before proceeding with ordering the floor plans, however. Most banks and mortgage companies are willing to finance modular homes in the same way they would any other type of housing. If you have a particular lending institution you would prefer to work with, however; it’s always best to ask if they will make modular housing mortgage loans, however.

Generally, modular homes will appreciate in value over the course of the mortgage loan which means that should the homeowner decide to sell their modular home before they have paid off their mortgage, they will usually be able to receive an amount above and beyond the mortgage payoff.

Interest rates for modular home mortgages are typically about the same as traditional home mortgage rates. While factory built homes are typically limited to fixed interest rate mortgage loans, modular homes can often be financed using adjustable interest rates. This makes it possible for homeowners to take advantage of flexible interest rates during the course of their modular housing mortgages.

Even though a modular home is shipped directly to the buyer in parts or sometimes just as the building materials, when the home is placed on a permanent foundation on land that is owned or being financed by the owner; there is no difference between the modular home and any other piece of real estate. Most banks and lending institutions will even finance the price of the lot or land in with the modular mortgage.

Depending on the lender, individuals with bad or poor credit may even be able to finance a modular home mortgage. The interest rates offered to persons with less than perfect credit may be higher than the prime rates; however the savings cost in modular homes can often help to defray the difference. Persons who think that modular housing might be the right choice for them can best discover the full array options available to them through modular housing by discussing it with a qualified lender.