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We found out that the banks wouldn't give you a construction to perm loan, required to do a modular build, unless you had the 20% AND an additional 15% cash (which in our case came to about 100k) to start. Apparently during the mortgage bust, one of the big issues was people starting custom home builds then running out of money / credit to complete them and leaving the builder and the bank holding the bag. Builders went out of business then leaving the banks with properties they couldn't move because they were custom - which limits your available seller pool. So now, you have to have a nice bucket of cash to even get the bank to play ball. Without the construction to perm loan, or even a basic construction loan, you can't get the designer / builders to play ball because they want guaranteed work and payment.

So we were VERY excited about a modular, eco-friendly home, but simply didn't have that kind of cash ready to go. Stick built planned community - here we are.... *shrug* such is life. I just wish we had known before we wasted a year planning, searching for house plans, etc.
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Rochester Homes, Inc.
It sounds like the bank you were working with has some pretty outrageous construction loan standards. Keep in mind that a home built using traditional site built construction, modular construction, or panelized construction methods should all be financed the same way. As long as your builder is using the most recently adopted version on the International Residential Code for your area, there should be no difference in financing techniques, apprisals, etc. Modular is a building method, not a different code or different type of home so make sure you are working with a bank who keeps themselves educated on the industry that they are in. You can check out our blog for a more detailed description on code differences, financing differences, etc.
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Sheri Koones
Most of the resources for each house are listed in the back of the book - Prefabulous World - with websites for each.
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