• rowlant@gmail.com
  • London
Jki-facebook-light Jki-twitter-light Jki-instagram-1-light Jki-linkedin-light

FINANCING

Financing
Welcome To Rowland

Modular Living, Smart Financing – Build Your Future with Confidence.

Building a new home can seem daunting, with challenges ranging from securing financing and hiring a builder to picking finishes and closing the deal. This potential hassle might even deter you from considering a brand-new house. However, modular homes offer a perfect balance between new construction and accessibility. If you’re exploring the idea of a modular home or an ADU, here’s what you need to know about financing.

Traditional financing options for both modular homes and ADUs are typically based on your home equity, household income, savings, and creditworthiness.

  • Advanced Structural Design
  • Intelligent Building Systems
  • Custom Interior Solutions
  • Sustainable Materials Use
FINANCING

Understanding Modular Home Financing

Because modular homes are built on a permanent foundation, they are considered real property. This means you can finance a modular home with a traditional mortgage, just like any other house.

Financing Your ADU

Accessory Dwelling Unit (ADU) loans can finance your ADU, whether you call it an in-law unit, granny flat, backyard apartment, or secondary dwelling unit. These loans can significantly increase your home's value. While the average cost of an ADU can range from $100,000 to $300,000, keep in mind that rental income for ADUs in California can range from $1,900 to $2,300 per month for a two-person family, offering a substantial return on investment.

Rowland Development

Funding Options for Modular Homes and ADUs

When it comes to modular home financing, several loan options can help you secure the funding you need. These include:

If you're building a new modular home, you'll need a construction loan. If the land isn't already acquired, a land loan will also be necessary. Be aware that construction loans often require higher down payments.

Home Equity Line of Credit (HELOC) lets you borrow against your home's equity, offering a revolving line of credit up to a set limit. With HELOC, you only pay interest on the amount of cash you've actually drawn, typically over a period of up to 10 years.

Loan Requirements

Modular Home Loan Requirements

As you move through the modular home purchase process, here are the typical loan requirements you’ll encounter:

Read More

Credit Score

While lenders often prefer good credit, many are willing to work with prospective modular home buyers who may not have a perfect score. For instance, the USDA does not have a minimum credit score requirement.

Down Payment

A 20% down payment isn't always necessary. In fact, some loan programs require no down payment at all.

Sufficient Income

You'll need to demonstrate enough income to comfortably cover your loan payments.

Debt-to-Income (DTI) Ratio

Most lenders set a maximum DTI ratio, typically around 43%, though this can vary. If your DTI is high, consider paying down other debts before applying for a home loan.

Rowland Development

Why Choose RDC for your Modular Home Project?

Choose RDC for your next home and experience the superior quality of our modular homes. Regardless of whether you choose a predesigned or custom plan, every RDC home benefits from our specialized approach. We provide comprehensive services to bring your dream home to life.

At RDC, we understand that financing your dream home is a significant step. That’s why we have partnered with a trusted lender to offer flexible and competitive financing options. Our team will guide you through the application process, ensuring you find a plan that fits your budget and timeline. If you have a preferred lender, we would be happy to work with them on a financing solution for your Modular Home. Whether you’re opting for traditional loans, modular home-specific financing, or government programs, we’ll help every step of the way.

Get in Touch

The Bottom Line on Modular Financing

Modular home financing is similar to other construction projects, but it’s crucial to work with a lender familiar with modular construction lending. Payment terms for modular projects are often shorter and more front-loaded due to the rapid construction timeline.

Our team can connect you with our preferred lending partner who deeply understands the nuances of modular lending. They have funded thousands of modular projects, ensuring you’re in expert hands. Please ask your sales associate for more information on financing if needed.

Ready to explore your financing options for your project?

Contact Now
  • CA, USA
  • Mon - Fri : 9:00 am - 5:00 pm
  • 714-485-9914