Modular Financing Options

Today’s modular homebuyer has a wide array of financing options. Most mortgage companies make financing a modular home easier than ever and may even have departments or divisions specific to modular home financing. While the financing process can vary slightly from company to company, many new modular home loans are construction-to-permanent loans and follow a general template similar to any new home purchase.

Construction-to-Permanent Financing

Homebuyers can expect to proceed through the loan application and underwriting stages just as they would for any other new home purchase. The appraisal process is also similar; in fact, a home appraiser is not limited by construction type when determining the value of your home. Comparables to your new home should be similar to site-built homes with comparable square footage and design features.

New Home Construction Process

Lender’s specializing in modular financing will work with Homebuyers to qualify them for their selected model home and customized features. Once qualified and approved for the home they can afford, the construction

process begins. The modular home will be constructed and money will be disbursed to the homebuyer and the builder/contractor in stages based on the work completed. The money is what modular lenders call draws. During new home construction, the homebuyer will typically make interest-only payments to the lender on the funds as they are disbursed. This is one of the greatest advantages of modular housing because the construction time frame is reduced during the financing process. Additionally, find a lender that will offer special funding options upon the scheduled delivery of the modular units to the building site.

Once the home is almost complete and the builder/contractor is close to the final draw, the lender will send a modification package which will convert the loan into the homebuyers’ permanent loan selected at approval, unless significant upgrades and additional information changed the terms of the approved loan. Once the mortgage is modified, you officially own your new modular home and begin making regular mortgage payments. Modular home prices vary, and depend on the floor plan you choose for your modular house. In addition, we sell our homes to a network of independent builders, whose finish work ultimately determines the final contract price of each home. While we do not distribute price lists, we do understand the costs of building a house.

This is a brief overview of modular home financing….please contact a lender for approval and a much greater explanation of the loan process and what you can afford.


For more information on financing a home.

Meredith C. Chimock
NMLS ID# 697201
Sr. Loan Officer
Home Lending Solutions – Mortgage
Purchase/ Construction Loan Specialist

Citizens Bank
Cell: 570-468-7216
Fax: 1-844-206-6603

Bridgette Meskers
NMLS ID# 917486
Vice President
Branch Manager
Tunkhannock Office
Community Bank

Community Bank
Cell: 570-996-8226
Fax: 570-836-7644

Thomas E.Coronato
NMLS ID# 404587
Construction Loan Specialist
Home Lending Solutions – Mortgage

Citizens Bank
Office: 973-229-7698

Cell: 973-615-4279
Fax: 855-481-8764


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