Does Financing Look Different with Modular Homes?
At SmartPads, we have a lot of great resources for home builders. One of those is our relationship with a fabulous lender, Alex McKinley from The Federal Savings Bank. In the guest post, Alex shares insights and tips for those learning about financing a modular home.
Modular Home Advantages
Modular homes have become very attractive to people looking to build their new residence due to the time it cuts out of the build process and reduced variables in cost. Over the years I have helped many customers finance homes built by Colorado-based modular home builder SmartPads. I’ve gotten to know the company and its clients, and this has increased my appreciation for modular homes. SmartPads homes are constructed and highly engineered in a production facility under a controlled environment where the effects of building in wet and other adverse conditions that can cause potential mold and warping of the wood are not of concern. This also avoids delays due to inclement weather. This allows homeowners and general contractors to meet their building timeframes more confidently, especially in mountain areas where temperatures do not allow for steady work for half of the year.SmartPads homes are also highly energy efficient. Due to being built in a controlled environment which allows for stricter packing and air-tight protocols due to the tight building envelope delivers greater energy efficiency for the life of the home. Because modular homes are built to the same International Residential Code, or IRC, as site-built homes and must conform to state and local regulations, the value of your home when complete can be expected to be comparable to stick-built homes. In fact, they are built to even higher engineering standards.
Managing Budgets
As a construction finance specialist, I especially love that when working with SmartPads, my clients can rest assured that the cost to build is very predictable and that the guidance SmartPads provides both the general contractor and homeowner minimizes potential surprises along the way. All the projects I have helped finance have been completed under budget and ahead of schedule. That’s a win-win for everyone! Time saved is money saved!
Modular Homes and Customization
Yes! Modular homes can also be customized to you! Because of the potential savings in building a modular home versus site-built, I’ve seen my clients be able to upgrade to higher end finishes while staying within their budget. I have really enjoyed seeing all the upgrades that my clients have chosen through SmartPads for some really cool, sleek, top-of-the-line, luxury choices. SmartPads base choices are high quality, and from there, owners can pick even higher-end products to customize their homes to greater luxury.
Construction Financing Contingency
At The Federal Savings Bank, we want to make sure you have enough in your budget to build your dream home and customize it. We will add a contingency amount above the budgeted cost, typically between 5-10% of the budget cost to the loan amount. It is there in case you need it, and you do not pay on it unless you use it. This can be used for potential upgrades you choose along the way, or if there is an unexpected cost overrun. Because the loan works like a line of credit, tied to each budgeted line item, you will only pay interest on the amount you have drawn per month. This helps keep overhead low while you are building your new home.
Let's Connect!
Thinking about taking the next step to building your own SmartPads home? Reach out to your loan specialist, or feel free to reach out to me. I am available to help you build nationwide. I especially love learning about your dreams, your lifestyle, and helping you discover what your budget is so that you can start planning! Contact me today to get started. My passion for construction financing comes from having watched and partaken in the construction of my childhood home which my family still owns. I know the heartfelt dream of building a home for your family for generations of enjoyment and memories. It’s my honor now to guide you through the adventure! Give me a call or shoot me a text anytime to discuss your goals in homeownership and building!
About The Federal Savings Bank
Turning Home Ownership Dreams Into Reality
At The Federal Savings Bank, your homeownership dreams matter. As a veteran-owned, federally chartered institution, our commitment is driven by expertise and abundant resources to help you find your perfect home with the right-fit loan. With our people-first approach to home lending and nationwide capabilities, we are dedicated to strengthening local communities, one homeowner at a time.
What We Offer
Jumbo, Construction, United States Department of Agriculture (USDA), Federal Housing Administration (FHA), Multi-Family, Veterans Affairs (VA Traditional & Jumbo), Commercial, Conventional, Conforming Bridge Loans, Home Equity Conversion Mortgage (HECM).
Why Trust The Federal Savings Bank?
We go beyond the role of a typical bank by being your reliable and trustworthy partner. We're dedicated to finding the right solutions for your family and provide valuable education, mentorship, and unbiased information every step of the way. With The Federal Savings Bank on your side, you'll confidently make the right decision for you, your family, and your future.
