Modular homes can be expensive to finance. Financing on modular homes is sometimes similar to that of mobile homes, depending on the financing company you choose.
Some companies treat modular homes like mobile homes and finance them in the same way. Some sellers finance through the company and will give property loans as opposed to traditional mortgages.
Generally these loans have a 2 to 4 percent higher interest rate than comparable mortgages you can get on a traditional house. Over the life of the loan, this could cost the buyer thousands of extra dollars in payments.