Question 1

What is a One Time Close Construction Loan for a modular home?

Accepted Answer

A One Time Close Construction Loan combines your interim construction financing, lot purchase, and permanent mortgage into a single closing event. You only sign once and pay one set of closing costs. During the 12-month build period you make interest-only payments, then the loan automatically converts to a 15 or 30-year permanent mortgage once construction is complete.

Question 2

What is a construction-to-permanent loan?

Accepted Answer

A construction-to-permanent loan combines a short-term construction loan and a long-term mortgage into a single loan with one closing. Instead of qualifying for and paying closing costs on two separate loans, borrowers close once and the loan automatically converts to a permanent mortgage once the home is complete. This is exactly what Lower Mortgage's One Time Close program offers for modular homes.

Question 3

What FICO score do I need for a modular home construction loan?

Accepted Answer

The minimum FICO score is 680. Borrowers with 680-699 FICO qualify for up to 80% LTV and 43% DTI. Those with 700-719 qualify for up to 90% LTV and 45% DTI. Borrowers with 720 or higher qualify for up to 95% LTV and 45% DTI.

Question 4

Is this loan Fannie Mae conventional or FHA?

Accepted Answer

The primary program is a Fannie Mae Conventional One Time Close product. It is also eligible for FHA financing. Conforming loan limits apply, and High Balance is available where eligible.

Question 5

What types of modular homes are eligible?

Accepted Answer

Modular homes must meet agency guidelines and be placed on a permanent foundation on borrower-owned land. The property must be converted to Real Property after placement. Ineligible properties include homes over 40 acres, single-wide manufactured homes, tiny homes, and homes not on borrower-owned land.

Question 6

How do I get started with a modular home construction loan?

Accepted Answer

You can start by calling Marco Garofalo at 856-223-7958 or visiting mortgageformodular.com/contact to check your eligibility. The process takes less than 3 minutes and has no impact on your credit score.

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