If you’re thinking about building your own home, you might take a drive through a few neighborhoods to get an idea of what kind of house would suit you best. Have you ever stopped to wonder whether any of the houses that catch your eye are modular homes? Don’t be quick to answer “no”–once today’s modular homes are fully constructed, they look just like traditional stick-built homes. However, they can offer even more quality, energy-efficiency, and house-per-dollar than a traditional house. That why, in some states, one out of every four new homes is a modular house. And that means finding a modular home loan has never been easier.
Unlike their cousin, the mobile home, modular homes comply to the same state and local building codes and zoning laws as do traditionally-built dwellings. They come in all shapes and sizes, from 1,000 square-foot ranches to deluxe, 6,000 square-foot-plus manors. Even the poshest neighborhoods have seen an increase in modular home construction. That’s because, also unlike a mobile home, a modular home appreciates in value–often to a greater degree than a stick-built abode.
That’s because modular homes are constructed in a controlled environment: the factory. With skilled craftsmen moving from station to station, these homes are put together much more quickly and efficiently than a house built on site. Because they are going to have to withstand a long truck ride to your property, they’re built especially well–with about 20 to 30 percent more wood used in framing. Modular homes are less expensive to build, and they save money year after year in maintenance and energy costs.
Find the Perfect Modular Home Loan
Because of their excellent quality and resale value, many lending institutions have started up programs especially for modular home loans. Modular homes are eligible for FHA and VA loans, and 100 percent financing deals are also possible. Some lenders also offer interest only loans, where you pay just the interest during the construction phase. Keep in mind that you will need to provide the same financial information that you would for a traditional mortgage, including two years’ worth of tax returns, your current income, and any outstanding debts.