Terminologies to Remember for Modular Home Financing in Michigan

When deciding to build a modular home in Michigan, you shop around for the terminologies about modular home financing.

Appraisals

An appraisal will be needed at the approval phase and when your loan converts.  Your lender may add these fees to your closing costs, roll them into your loan, or require you to pay them.

Down payment

Typically, 20% is required.  Some lenders have different programs that require less of a down payment, but they will cost you more in interest.

Inspections

All inspections during construction are your responsibility.  Inspectors’ fees vary by region and individual businesses, but most inspectors charge $100- $150.

Building Permit

This will most likely be included in your modular home builder’s contract.  If you are acting as your own general contractor, you will need to pay for this.  Building permits vary in costs, even within the same state.

Closing Costs

Closing costs vary between lenders and loan programs.  Points will also vary, but they are based on a certain percentage of your loan.