2) Up-front
Expense
This up-front expense is considered part
of the overall project cost and is often
part of the down payment or can be "reimbursed"
as part of the construction loan.
3) Down
Payment
A down payment may be needed depending
on the size of the loan, your credit and
if you currently own the lot or not. You
don’t have to own the lot to receive
a 100% loan. The down payment, if
required may be cash, equitable securities,
or the equity in an existing home or land
purchase.
4) If
you are using your home equity, make sure
you obtain a true market value of your
home and anticipated time to sell your
home.
5) Planned
Budget
Know your limits. It can become tempting
to add additional items to the home that
will place the entire project out of budget.
Some buyers have a budget cushion for
upgrades and other changes
Documentation
Your submission of an application will
require documentation of income and employment
similar to a home resale mortgage application.
Tip:
Make sure you apply for a Construction Loan
with a lender competent in Modular Home
Construction Lending.
