A word on CONSTRUCTION LOANS

An important thing to understand when talking to banks, is that you will need a construction loan to get you building, that will eventually be rolled into an mortgage after building is complete, and not every bank does a construction loan in-house. Many banks will outsource the construction loan to another bank, thus allowing them to deal with the end mortgage product.

When one bank does the construction loan, and another bank does the end mortgage, the consumer is subject to two separate sets of closing costs and very limited cost sharing. When one bank does both the construction loan and the end mortgage, you are only subject to one set of closing costs and maximum cost sharing of various items. Therefore is it is often advantageous for the home-builder/consumer to seek out a bank that does an in-house construction loan to go with their mortgage product.

 
 

Modular Home Financing

Financing a modular home is very similar to financing a stick-built home. In fact, banks that are familiar with modular construcction actually prefer it over stick-built, because the time frame is so much better (3-4 months compared to 6 to 12 months or worse). Banks also assign less cost overruns to modular building, around 3%, compared to 10-15% when financing a stick-built; due to modular's better predictability, consistency and structured pricing. 

 
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American Trust
9325 Bishop Drive, Suite 120
West Des Moines, IA 50266

Our Contact: 
Kevin Ridout
Vice President / Lender
515-440-6675
kridout@americantrust.com

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Farm Credit Services 
www.fcsamerica.com
800-884-3276

 
 

MODULAR FINANCING PROCESS

  • WEEK 0     Complete project estimate so you have sound numbers of costs associated with your unique home building plans You also want to talk with bank and get prequalified.

  • WEEK 1-4   Have floor plans of your house drawn & review options you want to upgrade beyond factory standards.
    Fine-tune your project estimate, and have Sunrise help with subcontractors you need (foundation, HVAC, electrician, plumber, garage, porch, septic, misc.)

 

  • WEEK 5      Sign contract on house, pending approval on construction loan. (after loan's approved, 10% down payment on house)
    Provide bank with all necessary building project information they need for appraisal (Sunrise will help with this)

 

  • WEEK 6-9   Appraisal begins and is completed
     
  • WEEK 10    Close on construction loan
    Place down payment on / order house

 

     

    Manufactured Home Financing

    Because manufactured homes do not require land, the financial process can differ, and yet, the process is still painless.

    To purchase and finance a home from Sunrise Housing, just follow a few simple steps: 1. Decide on a floor plan and designs for home from Sunrise Housing 2. Apply for a loan 3. Approval acceptance 4. Lock it in 5. Requested documents due:

    • Driver’s License
    • Current pay stub
    • Social Security card
    • Most recent W-2
    • 2 months bank statements
    • Earnest monies check (if applicable)
    • References

    6. Closing documents 7. Funds distribution

     

     

       

       
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      Triad Financial Services

      Triad is a manufactured home lending specialist and has been for over 50 years. They offer several programs to fit your needs:

      • Home Only - Financing options on new single or multi-section manufactured homes, without land.
      • Land/Home - Consumers who are looking to secure property and their manufactured home in one payment. Allows for different tax breaks as well as ownership of the land on which their home will be placed. The final product is classified as a real property mortgage, much like a conventional site-built mortgage.
      • LandPlus - Financing option that allows the utilization of currently owned real estate for a down payment, without the closing costs of a Land/Home transaction. this is a home only product with added collateral.
      • To apply for a loan on their website or print off an application visit their website below: >> http://www.triadfs.com/consumer-financing/apply-now/