Best Prefab and Modular Mortgage Lenders in California
If you’re planning on building a high-end prefab or modular home in California, you will invariably find out that your financing options are significantly more limited than with site built homes.
That’s because the draw schedules (when the banks provide money to the builder) of most new construction lenders revolve around construction that can be approved on site. With modular and kit homes, much of the work is done off-site, so the banks need to be specialists in this kind of underwriting. With than in mind, as of January 2020, you can still get relatively low rates (<4%) with low money down (10% or 20% down) if you’re building a high end home and have borrower profile - you will just have fewer lenders to choose from.
Most often, these loans will be one time close products meaning they’ll be interest only for the period of the construction and then convert to 30-year term products once the construction period is complete (without a second close).
Here are some of the best ones we’ve found if you want to build a high end modular or prefab home anywhere in California including Los Angeles (L.A.), San Francisco, Tahoe, San Diego, Marin, Santa Barabara and the rest of the state.
There are a few other lenders that also do these types of products that may also be good, but we have less experience with or have found to be less competitive with respect to rates, loan to value, or other product aspects.