Q:

How do you finance a modular home?

A:

Quick Answer

Financing for modular homes can be obtained through the home's manufacturer or through private lending, Bankrate reports. Financing for a modular home is similar to mortgage financing for a conventional home in that there is a credit evaluation, an approval process and underwriting. The down payment is typically 5 to 10 percent.

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Full Answer

A modular home is different from a mobile home because it adheres to the same construction codes as a site-build home does, Quicken Loans explains. Quicken Loans offers financing for modular, but not mobile, homes. Modular homes are usually built in a manufacturing facility or plant, in three pieces or more. The home is then transported to a permanent site and assembled to a permanent foundation.

21st Mortgage offers loans for mobile homes, as the company explains. 21st Mortgage offers loans regardless of whether the modular home is located on leased land, on private land or in a park. The minimum loan amount is $20,000 as of October 2015.

Country Place Loans also offers financing for modular homes, according to its site. Country Place offers FDA loans, VA loans and USDA loans. Customers use a checklist before applying to determine the type of financing for which they may qualify.

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