Frequently Asked Questions
Everything you need to know about our modular home construction loans.
What is a One Time Close Construction Loan for a modular home?
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.
What is a construction-to-permanent loan?
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.
What FICO score do I need for a modular home construction loan?
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.
Is this loan Fannie Mae conventional or FHA?
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.
What types of modular homes are eligible?
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.
How do I get started with a modular home construction loan?
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.