Financing and Building a Modular Home

When you build your own home, there is a significant difference in the financing as compared to buying an existing home.

When you buy an existing home you pay in full before you take possession of the home.

When you build a home, in this case a modular home, you are given money incrementally by the lender as the home is built. You make periodic payments on that amount as work is completed. This process protects you and your lender if something stops the builder from completing the home. It also protects the builder if something prevents you from being able to pay.

When you use a lender to build a modular home, you get a "construction loan”. Construction loans are short-term loans that range from a four- to twelve-month duration. You make a series of payments as the home is completed.

After your new modular home is built, the building inspector issues you a certificate of occupancy, the lender then pays off the construction loan and issues you a traditional mortgage. Tidewater Custom Modular Homes has relationships in the banking and mortgage industry. Contact us if you want more information on the building and financing process.

Bookmark and Share

Go back to Main Blog

Copyrights © 2020 All Rights Reserved by Tidewater Custom Modular Homes.
Created and Maintained by WSI Pro Marketing, Inc.
Proudly serving residential and commercial customers in Norfolk, Virginia Beach, Newport News, Suffolk, Chesapeake, Portsmouth, Smithfield, Williamsburg, Surry, Richmond, Isle of Wight, and areas throughout the Tidewater / Hampton Roads VA region and North Carolina.