Stick built homes and modular homes both offer buyers an opportunity to secure a piece of the American dream through home ownership. Here’s everything to know about financing a stick built home or a modular home.
What is a Stick Built Home?
A stick built home is any home that is constructed from start to finish at the home’s site. Custom homes are all stick built, as they are built from the ground up on the land the home will occupy. Stick built homes are also known as site-built homes, conventionally framed homes, or traditional new build homes. The term “stick built” likely emerged due to homes being built on land “stick by stick”.
Benefits of traditionally built homes include great customization options including energy-efficient technologies. Because of the ability to customize your home with premium materials, these homes tend to increase in value more than modular homes.
If you’re having a home built traditionally, you’re also able to view the progress in real-time and are likely supporting a local real estate construction company in the process.
What is a Modular Home?
Modular homes surged in popularity following World War II. Unlike a site-built home, a modular home is deemed a non-site-built home as large portions of the home are manufactured offsite, and then transported to the site where they will finish being constructed. They are also known as factory-built, prefab, or system-built homes. Today, approximately 3% of new construction are non-site builds, including modular homes.
Benefits of modular homes include faster construction periods, and sometimes significant savings on the cost.
Traditional New Home Construction & Modular Home Financing
Irrespective of whether you’re building a new home from the ground-up on-site, or having your home built off-site, you’ll typically be able to choose between two loan options. The first is known as a construction-to-permanent loan. This type of loan can cover both the cost of the land and the cost of the construction of your home. Once the home is finished, you can convert to an adjustable, fixed, VA, FHA, or jumbo mortgage.
You also have the option of choosing a construction-only loan, if you happen to own the land outright, or you have other financing in place for the land.
Most, but not all banks and lenders offer an equally wide range of loan options for financing a modular home. If you’re buying an existing modular home, options include conventional loans, FHA loans, VA loans, and Jumbo loans. If you’re building your own, you’ll need a construction loan, just as you would with a stick-built home.
Loans for the Construction of Traditional Homes and Modular Homes in Oregon
Strategic Mortgage Solutions is a leading Oregon Mortgage Company based in Eugene, OR. We offer a huge variety of loan options for existing homes and new construction. To learn more about loans that may best meet your needs as a potential homebuyer, contact our experienced team at Strategic Mortgage Solutions today by calling 541-275-1148.
