Frequently Asked Questions

How does a construction to mortgage loan work?

Construction financing for homes typically involves combining a construction loan with either an FHA or conventional (permanent) loan. During the construction period, which usually lasts 4-6 months, the terms of the construction loan are in effect. Once the construction is complete, these terms are then converted to the terms of the FHA or conventional loan. This process can be done through a one-time close or a two-time close.


In a one-time close, there is only one closing, and once the construction is finished, the terms are modified to the permanent loan. On the other hand, a two-time close requires separate closings for the construction loan and the permanent loan. However, it's important to note that a two-time close may result in higher costs due to multiple closings.


During the construction phase, the funds from the construction loan are disbursed to the contractor or builder in stages, known as draws, as the project progresses. The borrower typically makes interest-only payments on the draws that have been taken by the contractor or builder.

What is a Modular Home FHA Loan?

FHA Loans, which are insured by the FHA, are a great option for borrowers who have limited funds for a down payment or may have less-than-perfect credit. If you have a higher debt-to-income ratio, we can assist you in finding a lender who can help with financing. This is especially applicable if you have other strong compensating factors that demonstrate your ability to allocate a higher percentage of your monthly income towards housing payments.


To qualify for FHA financing, your modular home needs to have been constructed after June 15, 1976, and must be permanently fixed to a foundation. If you're purchasing a modular home that isn't currently affixed to a foundation, there's no need to worry! Many lenders can structure a loan that allows for the upgrading of the foundation to meet FHA standards.


One of the advantages of FHA loans is the low down payment requirement of just 3.5% of the purchase price. Additionally, FHA loans typically have 30-year loan terms and offer competitive interest rates. These features make FHA loans an attractive choice for borrowers seeking affordable and accessible financing options.

USDA loans, are a type of modular home loan similar to the FHA loan, exclusively available to support rural development. Leveraging our partnership with the US Department of Agriculture (USDA), this loan guarantees more favorable terms from lenders. The best part? No down payment is required, and you can borrow up to 102% of your home's value. The USDA's Rural Development program is advocating for the enhancement of quality of life in rural communities. To qualify, simply ensure your dream home is located within USDA's defined boundary area of a rural community. 

Modular Home USDA Rural Housing Program?