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PRICING GUIDELINES

Financial Info

Today more and more people are considering building new homes rather than buying homes that need to be renovated. Modular home construction also uses new construction home loans. But, because modular construction is faster, the length of the loan is shorter. Because the loan process is the same, we often, we get questions about new construction loans.

A new construction home loan is not the same as a traditional home loan. New construction loans have different requirements, need different information and have different rules. But just because the steps are different does not mean you should avoid them.

Once you find that these loans are not that confusing, you will find it easier to own your dream home by building.

A new construction home loan requires the mortgage provider or bank to give you money to build your home. Your mortgage provider needs a detailed accounting on the estimated costs to build your project, including how much you are going to spend.

A new construction loan for both modular homes and traditionally built homes is a short-term loan used to finance the building of a home. The money is advanced to you to cover construction costs as work progresses. So you get the money in installments. As money is paid out to you , you pay interest monthly only on the funds that have been disbursed.

This loan type is very popular with families and individuals. When the construction phase of a new home is complete, this loan is paid off with permanent financing.

The downside to construction loans is that is fairly impossible to lock-in a permanent mortgage rate, because you won't be closing the loan until your home is built. The benefit of financing for a modular home is that a modular home only takes two months to build, so you can lock your rate in sooner.

Sometimes lenders are like to interview or see licensing of the contractor you choose. Most modular homes manufacturers have relationships with banks if you need.

Here at Avalon, it is our goal to help our customers in any way that we can when purchasing a new home. We have compiled a list of websites that provide information on home buying programs as well as tips to consider when shopping for a loan.

USA.gov has a helpful page for home buyers and homeowners. Here you can shop for a loan, learn about home buying programs and much more:

http://www.usa.gov/shopping/realestate/mortgages/mortgages.shtml

HUD can provide you with local home buying programs. This website provides you with state-specific programs. Learn more about what your state has to offer:

 http://www.hud.gov/buying/localbuying.cfm

There are special programs offered by the Department of Veteran Affairs for those who have, or are currently serving our country:

http://www.benefits.va.gov/homeloans/

The National Council of State Housing Agencies (NCSHA) has information about the Mortgage Credit Certificate (MCC) program. Click the link below to learn more about the program and to see if you qualify:

http://www.ncsha.org/resource/2013-mortgage-credit-certificate-program-qa

Having difficulty figuring out what you can afford? Try the mortgage calculator:

http://www.mshc.com/homebuyers/mortgage%20calculator.htm