Wantage, NJ · Member since 2023 · 6 posts · 4 votes
I am looking for a lender who will finance (3) new Modular - new construction homes in New Jersey. The new homes will be under contract to be sold before finance is requested. LTV will be no more than 70% and I already own the improved lots. The first of 3 is sold and under contract the other (2) should be under contract within 30 days.
This is a fairly tight niche in lending. Not many banks delve into this so you are going to want to connect with a lender that offers this specific product. Happy to assist.
Real Estate Broker · Houston, TX · Member since 2016 · 35 posts · 15 votes
2y
Virtually any lender will finance the end product of a modular home for the buyer. For a construction loan where the buyer is obtaining the loan, then there are much more limited options. Generally the retailer of the modular home will require a 10% upfront payment for the builder to get the home delivered and set which would need to come from the buyers pocket if the builder is not well capitalized to handle that expense which should be treated as additional earnest money towards the completed project. It sounds to me as if you are the land owner and builder, and i would suggest reaching out to the modular home retailed for suggestions on financing their end product and they should have some quality referrals for you.
This is a fairly tight niche in lending. Not many banks delve into this so you are going to want to connect with a lender that offers this specific product. Happy to assist.
Hi Brett, thank you for the reply. Any assistance you can provide would be greatly appreciated.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
2y
@Jay VanOrden usually we get these types of loans from smaller, local lenders. Have you reached out to any in your area? As a builder, I would highly recommend networking with other builders in your area as well. Have you visited with your local builders association? Even connecting through the various facebook groups would be a good practice. You can search on facebook for something like "New Jersey Real Estate Investors" or "New Jersey Builders". Some of the New Jersey groups will have thousands of members in them. Ask in those who is using what builders. And while I appreciate how anybody earns business, put the priority on other investors/builders recommendations. It's not foolproof but if another investor/builder has worked with them that would help narrowing down to better lenders.
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
2y
@Jay VanOrden- thanks 1) check with the dealer / manufacturer 2) resaerch other transactions that are similar to see how the funding worked 3) contact the smaller to mid size banks and credit unions in the area for options 4) consider including your home ( if appic) for a cross colaterilazation deal if avaiable
Specialist · San Francisco, CA · Member since 2019 · 51 posts · 39 votes
2y
@Jay VanOrden my data isn't perfect but at some point during the last couple of years, each of the following was doing modular loans in NJ: Cascade financial services elend Flagstar Landhome financial services Orion lending
Us Bank Vanderbilt Mortgage and finance
As others mentioned, there are probably other solid local options
And be sure that the draw schedule matches what you need to build the house because modular draw schedules vary somewhat from lender to lender.