Financing a Modular Home – What You Need to Know Before You Build
Yes, You Can Finance a Modular Home — Here's How
Modular construction has changed a lot over the past decade, but many homebuyers still ask: "Can I finance this like a traditional home?" The short answer is: Absolutely.
Modular homes are built to the same codes and quality standards as site-built homes, which means they qualify for traditional home financing. That includes:
Conventional mortgages
Construction-to-permanent loans
FHA and VA loans (when eligible)
Modular vs. Manufactured: What's the Difference?
Lenders often make a clear distinction between modular and manufactured homes:
Modular homes are built offsite to local building codes and set on permanent foundations.
Manufactured homes are built to HUD codes and can be moved on steel frames.
Because Family Built Homes constructs modular homes that meet local standards, financing options are very similar to stick-built construction.
What Lenders Look For
When you apply for a loan, lenders consider:
Your credit and income history
The home’s appraised value
The builder’s experience and credentials
The overall cost breakdown (including land, site prep, and the home)
Modular homes typically appraise at or above the same value as site-built homes, which makes them a solid investment.
What About Construction-to-Permanent Loans?
A common option for modular buyers is a construction-to-perm loan:
You get approved for the full cost of land + construction
Funds are disbursed in stages (called “draws”) during the build
Once complete, the loan converts into a traditional mortgage
The benefit? One closing, one interest rate lock, and a smoother path from ground-breaking to move-in.
3 Steps to Prepare for Financing
1. Know Your Budget
Start by identifying your total investment range (land, home, delivery, site work).
2. Choose a Lender That Understands Modular
Not all lenders are experienced with modular loans. We can help connect you with trusted options.
3. Get Pre-Qualified Early
Understanding what you can borrow helps narrow down design and timeline.
Family Built = Finance Friendly
Our process begins with an honest conversation about your goals. When you call us, we talk through:
Base home pricing
Transportation and site costs
Customization levels
We don’t overpromise or inflate numbers. We help you understand what’s included — and where your money goes.
FAQ: Financing Modular Homes
Q: Can I use a VA or FHA loan?
A: Yes! As long as the home meets requirements and you qualify, those programs apply.
Q: Is it harder to get a modular loan?
A: Not if you work with the right builder and lender. That’s where we come in.
Q: Can I finance the land and home together?
A: Absolutely — many buyers do. It’s part of what makes modular so streamlined.
Let’s Make It Simple
Financing doesn’t need to be overwhelming. If you’re curious about modular homes and how they fit into your financial picture, we’re here to guide the process from start to finish.
