Financing for Modular Homes
Obtaining financing for your new modular home is possible! There are many modular-friendly lenders, including Scotiabank, BMO, RBC, TD, CIBC, as well as most credit unions. The below information is very general — talking to your bank is often the best place to start as every situation is different.
Ideally, most lenders prefer the client to have the property already in their name. Purchasing land usually requires a 25% down payment. Once the property is owned, the lender may add the value of the property and lend on the modular+property package.
A modular home loan usually has to be insured via CMHC. CMHC has a minimum square footage requirement based on location, which usually is a minimum of 650 square feet.
The lender will need to see the actual construction agreement contract with all the details (break down of deposit, draws, etc.) New modular homes will be processed as a “construction” loan with most, if not all, lenders.
We Can Help
Our team includes a licensed mortgage broker, based in Nanaimo and with experience in modular construction. Contact us through our web form or call Karla at 250-741-4706 to talk about your financing needs.
If you’d like more information, or to book a consultation to talk about building a home: