Custom Modular Direct offers a variety of unique programs through our various lenders that allows our customers great flexibility in financing their home building project. Qualified applicants will find a wide array of programs available to them, all with very competitive rates and low closing costs.
Please contact Custom Modular Direct either by email (firstname.lastname@example.org) or phone (800) 310-5161 for loan officer contact numbers.
Lender Program Examples
- 100% financing of land, material and labor
- No payments during construction - interest reserve is financed
- Construction to permanent loan offering one closing
- Approvals of up to 125% of acquisition cost
- Closing costs financed in through the construction loan
- Cross-collaterization Program - allows you to pull equity out of your existing home while at the same time creates a construction to permanent loan scenario
- Flexible draw schedules
- 6-12 month construction schedule
- 15 or 30 year amortization schedules
Down Payment Requirement
Down payments vary by lender and are based on your individual qualifications and the amount you are borrowing. Typical down payments required range from 0% - 10% down. The equity in your project based on the appraised value is eligible to serve as the down payment with many of our lenders, and also allows you the flexibility of rolling in closing costs, interest reserve fees, etc... It is based on the lender's programs and how you qualify that allows them to grant you a specific loan. The lender will review your credit history, income and current debt load to assist them in qualifying you.
What To Do First
Get pre-qualified! Based on your income, current debts and estimated down payment, your lender can usually help you determine the maximum mortgage amount for which you could qualify in minutes, or you can download and install our "quick pre-qualification calculator". Unless a credit report is pulled, the pre-qualification analysis will be a "ballpark" estimate of the maximum mortgage amount for which you may qualify. Typically there is no cost or commitment on behalf of either party for a pre-qualification analysis.
The Difference Between A Pre-Qualification Analysis and a Pre-Approval Application
A mortgage loan pre-approval application usually results in a written loan decision following a complete mortgage application and appraisal fee. You can typically apply for a pre-approval mortgage prior to signing our "Home Purchase Agreement". Many lenders will also allow you to lock an interest rate in at the time you apply for a pre-approved mortgage. In today's market, it is a very good idea to submit a pre-approval letter with your land purchase offer.
Determining Which Lender and Program Meets Your Needs
Our lenders are regionalized per geographical area and have a working knowledge of our program. They were chosen based on the quality & flexibility of their financing products as well as reputation. You will work one-on-one with a loan officer who will guide you through the process. All loans are referred out to a third party lender who has agreed to participate in the CMD Program. CMD is not a direct lender.
Can I Use My Own Lender
Yes you can provided they are in agreement as to how the modular units will be paid. All modular units are to be paid via pre-curbside funding directly from the lender to the manufacturer 5 days prior to delivery. Most lenders understand that this is standard in the industry and usually have no objection to pre-curbside funding if told about it upfront.
Should I Apply for a Construction Loan or a Construction to Permanent Loan
It will cost you less in closing costs to secure and settle on both a construction and permanent loan at the same time, but every situation is different and options should be weighed. Settling on a construction loan means that a short term loan is secured by the property on which the home is being built. Funds are disbursed through a series of draws throughout the construction period and replaced with permanent financing once the house is 100% complete. There are many different approaches to financing the construction portion of your loan and those questions are best handled by your loan officer. Programs can and do vary with every lender and each applicant's requirements vary.