A Construction Loan, Why Do I Need This When Buying a New Modular or Manufactured Home in MN?
November 28, 2010
A Construction Loan, Why Do I Need This When Buying a New Modular or Manufactured Home in MN?
By: Dustin Falling- Sales Manager at Life Style Homes of Litchfield, Inc.
“I need a construction loan?” is a comment I hear often when talking about the financing portion of buying a new modular or manufactured home. This is generally a requirement when you are acquiring a new home mortgage loan.
A construction loan is simply the interim loan that allows you to pay for land, partial payments for labor and materials and any other items that need to be paid during the home project. Generally, you are charged an origination fee that covers all the necessary staffing and processing and then interest on each amount that is paid out during the home building process. Once the project is completed the mortgage company pays off the construction loan holder and turns it into a long-term mortgage (usually a thirty or fifteen year term).
Some time finding a construction loan carrier and getting approved can be tricky. Fortunately for those who work with us at Life Style Homes, we can carry the construction. Doing a construction loan through us generally costs less money and is much easier to get approved and started.
Now you know why a construction loan is necessary when building a new home and the more you know the better decisions you can make regarding your new home.
The Waterbury
November 13, 2010
28×64
1,769 Sq Ft
3-4 Bedroom/2 Bath
Modular Homes Get You Best Interest Rates in Minnesota
November 6, 2010
Modular Homes Get You Best Interest Rates in Minnesota
By: Dustin Falling- Life Style Homes of Litchfield, Inc.
Many don’t know this, but a modular home is categorized the same as a site built home when you are acquiring a mortgage loan.
If you were going in to get pre-approved for a loan today you can expect to see around 4.5% for a thirty year term. Depending on your loan the closing costs should be the same as a site built home.
Even the insurance companies view the two types of homes the same. You can expect to same type of deductable and coverage from insurance companies.
It is a nice piece of mind knowing when buying or re-selling a modular home they are viewed the same and are very marketable.
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