Your Financing Options
Apply for Pre-Approval
One of the first matters of business in the pre-approved financing process is checking credit scores. Most of our lenders prefer to see credit scores of 670 and above, though if you are falling under that, do not be discouraged from the process—some lenders will accept credit scores as low as 580. When an individual has a lower credit score, a higher down payment is required.
Next up, it is time to choose a bank. They will handle all of the pre-approval paperwork, starting the process of securing you a beautiful new home. We do not require that the bank you select is a partner of Preferred Homes. However, if you are working with a bank outside of our preferred lenders, we will need to ensure that the bank's guidelines line up with our funding requirements.
Unsure of Your Credit Score?
If you’re not sure what your credit score is, no problem. Preferred Homes can help to refer you to different lenders that will best fit your situation. A great lender will help you to understand what kind of financing options are available to you, what you can expect in terms of a down payment, what loan value you could be approved for, and an estimate of what your monthly payment could look like.
Unsure of What Loan to Apply for?
Since these are manufactured and modular homes, your loan won’t be a typical residential home loan—our lenders specialize in manufactured and modular home loans. Because our homes are built off site and need to be paid for prior to delivery, we need to work with lenders who understand that requirement. When someone is interested in purchasing a home through Preferred, we look at the type of home they are buying, where they are putting it, and their overall financial status. Then, we determine the best lender and type of loan for that specific customer.
Gather Additional Documents
After receiving pre-approval, it is time to gather the following documents to send to the bank you’ve chosen:
Is Your Home Going Onto Private Property?
If the answer is yes, the following additional documentation will be required:
- Copy of property deed
- Site bid quotes
If the land is NOT in your name and you are doing a “Home Only” loan, you will need written permission from the property owner.
Is Your Home Going Into a Park?
If your new modular or manufactured home will be placed in a park, you must acquire a signed park lease, and if applicable, a signed park incentive form—some parks offer move-in incentives.
We work with our dedicated lenders that strive to get you the most competitive rates possible, making the home buying and financing process as simple as can be.
21st Mortgage Corporation
With over 8,000 five-star reviews, 21st Mortgage Corporation is a leader in modular and manufactured home financing. They are passionate about helping people secure beautiful forever homes for a lower cost than even renting could offer.
GreenStone Farm Credit Services
GreenStone Farm Credit Services is a Michigan-based lender specializing in rural-related financing of many kinds, modular homes included. In operation since 1916, this company has over a century of experience in providing reliable, compassionate services that better the lives of those in their community.
Lake Michigan Credit Union
LMCU has many branches all over Michigan and are passionate about serving families seeking their forever homes—Lake Michigan Credit Unions strives to provide clients with low down payments and manageable monthly payments, making the home buying process a pleasant and exciting experience.
Triad Financial Services
Since 1959, Triad Financial Services has been supplying competitive loans to modular and manufactured home buyers, though they do more work for manufactured home buyers. They understand the industry and work with customers on a national level to help them obtain a home that is perfect for their family.
Finance The Home of Your Dreams
If you’ve fallen in love with one of our modular or manufactured homes, contact Preferred Homes to start the process of discovering your financing options. Interested in exploring a home in person?
Financing is only available for Michigan Buyers
Frequently Asked Questions
Can I Finance a Home with Bad Credit?
While the ability to personally finance a home heavily depends on your credit score, if you are unable to secure funding from a bank, there are other options available. We can work with you on private financing.
For example, friends or family members are able to apply for a loan in their name, even if you will be occupying the home. Lenders treat this situation as if the applicant is applying for a second home. A higher down payment is often required, around 20%, but it does open the door for those with a low credit score to still secure the home of their dreams.
Can I Finance Land for My Modular Home?
Preferred Homes does not sell land for modular or manufactured homes. However, if you’re searching for land to place your future home, we are happy to put you in contact with a real estate agent that can help you find the perfect piece of private property. This land can be paid for at the closing of the construction loan.
Can I Finance a Manufactured Home on Land I Own?
Yes. If you have equity in the land, that equity can go toward the down payment for the loan. With enough equity, no additional down payment may be required. You will need to provide a copy of property deed, site bid quotes, and a survey of the land to be approved for financing.
Let Us Help You Find Your Dream Home
Preferred Homes has a variety of homes available, with options for all types of budgets. Check out what we have available, or if you're ready to take the next step—schedule a tour today!