Modular Home Financing Basics

Many modular projects use a construction-to-permanent loan: funds release in stages for deposits, factory progress, and site work, then convert to a standard mortgage when the home is complete and certificate of occupancy is issued.

Manufactured homes on leased land or with non-permanent foundations often follow different lending products than modular homes on owned land with permanent foundations. Your lender’s eligibility rules should drive the product choice — not marketing labels alone.

Before you pay large deposits, ask the builder which lenders they work with regularly in your state, and speak with a loan officer familiar with factory-built housing timelines.