What Are Modular Homes?
Investing in modular homes has become a popular option for real estate investors because modular homes can be more affordable and sustainable than traditional stick-built homes. As housing demand has surged nationwide, the modular construction market has offered a reprieve for investors by shortening timelines and alleviating workforce shortages.
The modular home market is expected to keep growing in the coming years because of the increasing popularity of these homes, the growing demand for affordable housing, and the availability of financing for modular homes.
Modular homes are built in a factory under controlled conditions and then transported to the building site where they are assembled. This process can be much faster and more efficient than traditional homebuilding methods, which can save investors time and money.
It’s important to note that modular homes are built to the same standards and codes as site-built homes. In fact, the construction quality is often more consistent.
Modular home construction is becoming a popular investment option for several reasons.
- Modular homes are more affordable than traditional homes because they are built in a factory where there are economies of scale. This leads to stable labor prices and shorter timelines, two major factors in the overall cost of construction.
- Modular homes can be built to a higher standard of quality than traditional homes because they are built in a controlled environment where there is less risk of weather damage or other disruptions.
Speed of Construction
- Modular homes can be built quickly, helping investors to get their real estate properties on the market sooner. This reduces soft costs around financing and site maintenance.
- Modular homes can be customized to meet the specific needs of the investor, giving them the option to choose the size, layout, and finishes of the home.
How to Finance a Modular Home
Building modular homes can be a great way for builders to advance in the real estate investment market. Finding the right modular home construction loan is one key to getting started.
Investors have several options when it comes to construction financing for modular homes, so it’s important for investors to research and find the best option for them.
Here are a few of the most common loan options for modular home financing:
Modular Home Construction Loans with Lima One
Many experts believe the modular construction market is the foundation of the future of homebuilding.
While investors shop for the right modular home loans, finding a qualified lender who understands the unique financing structures required for modular homes is important. Lima One is working hard to be the nation’s premier lender for modular homes. Because of our deep experience with the modular home process, we can finance the purchase of a modular home while also financing all site and set work—and do it with the same efficiency and certainty that we are known for across all types of financing.
Lima One Capital is the nation’s premier lender for real estate investors, and we offer loan programs other lenders in our space can’t compete with. Our robust product suite, including ground-up construction and modular home financing, is designed to help investors be successful.