Modular home construction can put you upside down on your new home mortgage very quickly.
When a professional panelized builder constructs a house, they are typically paid as the work is completed over several months.Many homeowners prefer this method to ensure that they have enough money to complete their dream home.
With a modular home, the builder will be constructing the majority of the home off site and will deliver and set up the building almost completed.For this reason, many builders want payment in full for the home before the expense of building it is done.
The problem is that if anything goes wrong, homeowners can easily get the ‘tail-light guarantee’ from the modular company – since they have been paid upfront, when they drive away the guarantee is over.
In addition, some mortgage companies may issue a construction loan for the upfront payment, and replace it with a mortgage later, but getting all of the money initially could be difficult for some borrowers and make a modular home a challenge to finance.
But not with Panelized construction which is not only a far superior home building method, banks and financial institutions prefer the craftsmanship and quality and tend to be more accommodating in acquiring financing.
Contact our panelized home financing expert today to learn more about home rates and the best way to finance your new home.