Can a buyer purchase a Modular Home using a USDA Rural Development Home Loan?
Absolutely! We routinely lend USDA guaranteed home loans to build modular homes throughout NC, SC, and VA. Modular Homes are sectional, prefabricated houses that consist of two or more sections which are typically manufactured in a controlled, high tech facility and are delivered to their site of intended use. Today’s modular homes offer quality at price points for all types of borrowers spanning from small starter homes to large luxury homes. Modular Homes are built to the same codes as on-site, stick built homes while manufactured homes (double or triplewides) are built to HUD codes.
Advantages of Building a Modular Home:
- Built in a controlled environment – free of damaging elements
- Energy efficient options – Keeping low energy bills in mind
- Often lower price per square foot compared to stick built
- Can be completed quickly – Completed homes from 60 – 120 days
- Flexible & Easy to alter floor plans – Change room sizes, room layout, and more
Using USDA 100% Financing to Build a Modular Home:
USDA is a great lending option for building a new custom modular home on your own land or even if you are purchasing land at the same time. Using a USDA Home Loan can be a great way to finance up to 100% of the contract price, closing costs, and purchasing or paying off land. Whether you own land already, want to purchase land at the same time as building, or you are receiving land gifted from a family member, USDA can offer so many advantages for homebuyers. Often prospective buyers have the misunderstanding that a higher interest rate comes with building a modular home but that is NOT TRUE. A modular home USDA rate with us is no different than the rate on an on-site, stick built home. USDA does have restrictions for property location but much of NC, SC, and SC are eligible (see if your area is eligible). It also has household income limits but they are quite liberal.
Why Use USDA Financing for Building a Modular Home?
- 100% financing up to the purchase price or as completed appraised value
- Lower payment when compared to FHA
- 30 year fixed rates to provide a payment you can count on
- Builder can pay most or all of the borrower’s closing costs
- Flexible on credit allowing as low as 640 credit scores
- Land can be recently gifted by a family member
Most of Southeastern North Carolina is Eligible for USDA Financing!
Only the small areas shaded in orange are not eligible for USDA Financing
Interview With Local Modular Builder – James Stone at Modular Home Solutions in Whiteville, NC:
Team Move: Tell us about the quality of your modular homes
James Modular Home Solutions: Good, quality homes such as the ones in this article showcase many features found only in your high end custom stick built homes. However with the modular homes, you will save approximately 20% over a comparable stick built home yet they appraise the same.
Team Move: How long does it take to build a modular home?
James Modular Home Solutions: The time it takes to get into your new modular home is usually between 75 and 90 days. You do not get that with a stick built home
Team Move: How important is choosing a modular home expert?
James Modular Home Solutions: You do not go to a heart specialist when you need glasses nor to a dentist when you need your hearing checked. Even though both are in the medical field, they are not what you need. This holds true for modular homes also. So why would you talk to a mobile home salesperson or a builder when you are entertaining the purchase of a modular home? An experienced modular dealer will be able to answer all of your questions. Last but not least, you do not need a pushy sales person, you need an expert!
Team Move: Do buyers need land for their modular home?
James Modular Home Solutions: Most of our clients either have land already or are gifted land from family members. But if you don’t have land, we can help you find available land plus my partner Trina Strickland, is a real estate agent so she is able to search MLS for land as well.
Team Move: What is the best way to contact you to learn about a modular home?
James Modular Home Solutions: You can call our office at 910-640-5556 or come by to see myself and Trina Strickland at 1323 South Madison Street, Whiteville, NC 28472.
- USDA has a minimum amount of credit experience for USDA loan approval
- No Rent History? Living with parents or family? We have solutions
Author: Russell Smith
Team Move OVM Financial loan officer success is Russell’s primary focus. He provides the tools and techniques he used as a top producing loan officer. Additionally he offers the Team Move OVM Financial Agent Training Program. Sharing is so important to Russell so he works diligently to be a resource to loan originators and Realtors.