There are a variety of unique programs through our various lenders that allows you great flexibility in financing your home building project.
Qualified applicants will find a wide array of programs available to them, all with very competitive rates and low closing costs.
DOWN PAYMENT REQUIREMENT
Down payments vary by lender and are based on your individual qualifications and the amount you are borrowing. Typical down payments
required range from 5% to 10% down. The equity in your project based on the appraised value is eligible to serve as the down payment with
many of our lenders, and also allows you the flexibility of rolling in closing costs, interest reserve fees, etc... It is based on the lender's programs
and how you qualify that allows them to grant you a specific loan. The lender will review your credit history, income and current debt load to
assist them in qualifying you.
WHAT TO DO FIRST ?
Get pre-qualified! Based on your income, current debts and estimated down payment, your lender can usually help you determine the
maximum mortgage amount for which you could qualify in minutes. Unless a credit report is pulled, the pre-qualification analysis will be a
"ballpark" estimate of the maximum mortgage amount for which you may qualify. Typically there is no cost or commitment on behalf of either
party for a pre-qualification analysis.
THE DIFFERENCE BETWEEN A PRE-QUALIFICATION ANALYSIS AND A PRE-APPROVAL APPLICATION
A mortgage loan pre-approval application usually results in a written loan decision following a complete mortgage application and appraisal
fee. You can typically apply for a pre-approval mortgage prior to signing our "Home Purchase Agreement". Many lenders will also allow you to
lock an interest rate in at the time you apply for a pre-approved mortgage. In today's market, it is a very good idea to submit a pre-approval letter
with your land purchase offer.
HOW MUCH HOUSE CAN I AFFORD ?
Start with your total mortgage budget and work backwards into your house number using this Pricing Guideline.
DETERMINING WHICH LENDER AND PROGRAM MEETS YOUR NEEDS
All of the above lenders have a working knowledge of modular houses. They were chosen based on the quality & flexibility of their financing
products as well as reputation. You will work one-on-one with a loan officer who will guide you through the process.
CAN I USE MY OWN LENDER?
Yes, provided they are in agreement as to how the modular units will be paid. All modular units are to be paid via pre-curbside funding directly
from the lender to the manufacturer 3 days prior to delivery. Most lenders understand that this is standard in the industry and usually have no
objection to pre-curbside funding if told about it upfront. But to make the homebuilding process go as smoothly as possible we urge you use
one of our recommended lenders.
SHOULD I APPLY FOR A CONSTRUCTION LOAN OR A CONSTRUCTION TO PERMANENT LOAN?
It will cost you less in closing costs to secure and settle on both a construction and permanent loan at the same time, but every situation is
different and options should be weighed. Settling on a construction loan means that a short term loan is secured by the property on which the
home is being built. Funds are disbursed through a series of draws throughout the construction period and replaced with permanent financing
once the house is 100% complete. There are many different approaches to financing the construction portion of your loan and those questions
are best handled by your loan officer. Programs can and do vary with every lender and each applicant's requirements vary.
OUR RECOMMENDED LENDERS
Homestead Funding, Trustco Bank, Glens Falls National Bank, or Maple Tree Funding
More House. Less Money.