There are many different types of permanent modular construction loan,and all can be an excellent option,depending on the particular situation you find yourself in. The three most popular types of permanent construction loan include: Structured-to-Permanent Construction Loan: This type of permanent construction loan only ever closes at the end of the term and converts into a permanent mortgage once the modular has been completed. A structured-to-Permanent Construction Loan typically includes more expensive items such as an upper level or an elevator and is typically offered by builders who are confident in the overall construction of the modular and the builder’s ability to complete the project successfully.
Structured-to-Assessable Construction Loans: A Structured-to-Assessable Construction Loan may offer an attractive rate,with the condition that the modular must be inspected before the construction is complete. The structure of the modular will determine which inspections are required. In order to qualify for this type of loan,an inspector must have completed an inspection of the property at least once. While the lender does not require an inspection,it may be important to have one done to make sure the modular has the items the inspector was unable to see.
Temporary Construction Loan: This type is similar to a Structured-to-Permanent Construction Loan,only it offers a shorter term. This loan will typically have higher fees and interest rates,but allows you to borrow a smaller amount of money over a longer period of time. When deciding which type of loan would be best for you,it is important to look at the amount of money you are going to borrow,the cost of the project,what types of items the lender requires inspections on,and the duration of the loan. If you are planning to buy or build a modular building on your own,then you should definitely take the time to investigate all the options. The Internet is an excellent resource for all the information you could possibly need. Just do a little research,and you will be well on your way to a modular that will last and one that your family will be proud to live in. Good luck!
