Best prefab and modular construction lenders?

[Michael Frank]

Prefab and modular projects often require a different draw schedule than stick built homes. What construction lenders have others used for prefab or modular projects?

[Eric Teran]

@Michael Frank I live in Northern Virginia and built my prefab home in 2017. I called almost 30 banks. Big and small. Local and National. Only three were willing to work with me and they were all local small banks. The bank I choose was Bank of Charles Town. They understood the draw process of a prefab home.

However, on the day the home (4 boxes) were delivered the bank would not wire the money until the boxes were set on the foundation and the prefab company wouldn’t put the boxes on the foundation until the funds were wired. it was a catch 22. Luckily we worked this out before hand and someone was at the bank in the early hours with me on the phone. When the first box was lifted off the trail the wire was sent with a proof of transfer sent to the email of the prefab company.

When I do another prefab house I would also look into hard money if there are no banks. A prefab homes is built in 2-4 months so the holding costs should be too painful.