What are the financing options available for purchasing a modular home?
Learn all about what types of financing options there are for purchasing a prefab modular home.
California Modular Houses offers several financing paths for California modular homes and ADUs. The best option depends on whether you already own the property, are purchasing land, are building an ADU, or are constructing a new single-family residence.
The most common financing options used by our customers are:
Cash: Some customers pay for all or part of their modular home or ADU with cash. This can be the simplest option because there is no loan application, interest, or loan fees.
Insurance proceeds: Customers rebuilding after a fire may use their insurance funds toward the purchase and construction of a new modular home. Modular construction can be a cost-effective option when insurance proceeds need to cover the replacement of a home.
Home Equity Loan or HELOC: For an ADU or a new home on an existing property, homeowners may use the equity in their existing property to finance the project. A HELOC can be a convenient option when sufficient equity is available.
Lot Loan: If you need to purchase the property where the modular home will be built, a lot loan can be used to acquire the land. This can allow you to work on your home plans, site requirements, and permitting before obtaining construction financing.
Construction Loan: Many California Modular Houses customers use a construction loan to finance a new modular home. Construction financing is generally arranged once the plans, permits, project costs, and contractor information are sufficiently developed for the lender.
Construction-to-Permanent Financing: Depending on the lender and project, construction financing may eventually convert into a conventional long-term mortgage after the home is completed and receives its Certificate of Occupancy.
For most new modular home projects, it is important to understand that financing the home itself is only one part of the overall project. The total budget may also need to account for land, site work, foundation, utilities, engineering, permits, and other on-site costs.
California Modular Houses can also introduce customers to lenders who have experience with California modular construction. Lender requirements vary, so customers should discuss their individual financial situation and project with a qualified lender.
For an ADU, many of our customers use cash or a HELOC. For new single-family residences, customers commonly use cash, insurance proceeds, or construction financing.
The first step is usually determining whether you already own the property and establishing a preliminary project budget. From there, the appropriate financing path can be determined based on your property, plans, permits, and individual financial situation.
Here are a few lenders that you can talk to:
Mortgage Loan Originator
NMLS # 256946
Mobile: (619) 954-7816
Office: (858) 429-4654
3838 Camino Del Rio North, Suite 305,
San Diego, CA 92108
or
Rajesh Bhavnani
VP of Originations
NMLS # 2513002
Direct: (424) 484-9978
Office: (877) 885-0111
2824 So. Robertson Blvd.
Los Angeles, CA 90034
Specializing in vacant land “Lot Loans” and Modular “Construction Loans”.
or
Ricardo Ramos
NMLS 259643
Non producing Branch Manager
Supreme Lending
2936 Hilltop Mall Rd Richmond Ca
(510) 501-5185
(800) 600-6326
Steps to Build a Modular Home in California
Check out our FAQ page read more in-depth answers to the most commonly asked questions about modular homes.
Step 1:
Secure Land
Having a property is usually the first step in building your dream home.
Without land, it is hard to choose a home model or determine what the balance of your budget for building is.
Step 2:
Modular Feasibility Study
This is where one of us comes out to meet you at the property and determine what size modules can be delivered.
There is a fee for this service but it’s a credit on the price of the home.
Step 3:
Choose Home Model
We now know what size modules can be delivered. You can choose a home model that meets your requirements. Start with the smallest one you will consider and work your way up to your dream home.
More detailed info about building California
Check out our Modular Steps to Building page for more detailed information about building a modular home throughout the state of California.
Step 4:
Working on Plans
This is where you start working with us on the plans for your Factory Built Home (Modular).
There are costs involved in the modular home plans but they are a credit on the price of the home.
Step 5:
On-Site Pans
You will needs some plans for the on-site portion of the project:
Topographical Survey
Civil Engineered Site Plans
Soils Report
Foundation Plans, etc.
Step 6:
Permitting
Now that your plans are completed it is time for submission. We have an Optional Permitting Service or we can introduce you to someone to help you.
Expect plan check revisions, rarely do plans get approved on the first or second submission.
Home Floor Plans & Pictures to Review
Take a look at hundreds and hundreds of images and floor plans of our homes. Your home can look exactly how you want it, you are only limited by your imagination & budget.
Step 7:
Contractor Interviews
We do know a few General Building Contractors that we can introduce you to. They are familiar with modular home and can certainly help you.
Sometimes though you may have a qualified local contractor you’d like to work with, this is also your decision to make.
This is one of the most exciting parts of building a modular home. You get to see all of your hard work being delivered to your property.
You get to sit back, take pictures, and watch the show.
Then you get to walk through your house!!!
Step 8:
Modular Home Delivery & Set
Step 9:
Completion of Modular
Your General Contractor will work to secure the modules to the foundation, connect the cross-overs, finish whatever on-site work there is, etc..
From there, the City/County will review and provide your Certificate of Occupancy. Time to move into your dream home!
Congratulations!!!
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