When it comes to buying modular homes, one of the biggest obstacles people perceive is home financing. How can I get a lender who will approve of my modular home purchase?

To understand why this thinking is fallacious, it’s necessary to understand the difference between a modular and manufactured home.


When you think of a mobile home or trailer, you’re thinking of a manufactured home. These can indeed be harder to secure financing because they generally do not appreciate in value over time. The last thing banks want to is back a property that won’t rise in value — this generally means a riskier investment for them.

The thing about modular homes is that they’re in an entirely different category. When it comes to securing lending, they’re thought of like traditional stick-built homes.

Indeed, according to the Department of Veterans Affairs (the VA), which offers zero-down loans for military families, modular homes are a much safer option for lending purposes.

The VA states explicitly that, “veterans looking to purchase an existing modular home encounter the same lending process as a those buying a stick-built home.”

While VA loans are just one example of the thousands of home loans available, they generally adhere to more stringent lending guidelines since the loan recipients aren’t putting any money down.

So, if you were holding off on your modular home search because of worries about lending, there’s no need to worry. Approach the process the same way you would approach a stick-built home purchase!

Modular Homes On New Land

Securing funding for a modular home does get a bit more complicated when new land comes into play. If you want to install your modular home on a new piece of land, lenders tend to categorize this as new construction.

When it comes to new construction, lenders are more apprehensive in general and rates tend to be higher. But, if you have your credit in order and are working with an established modular home builder, you can absolutely still secure financing.

Tips For Getting Good Rates On Your Modular Home Purchase

Aside from having your own finances and credit in line, it really pays off to work with an established, licensed modular home builder.

Look for modular home dealers that are dealers of high-quality, highly reputable homes. Redman Homes, for example, is an excellent modular home brand to build.

Lenders always feel more comfortable with established and proven construction companies, and it’s no different in the world of modular homes.



If you’re looking for a modular home in Southern Illinois, including Marion, Mount Vernon, and Salem, Cannon Homes Inc. is your Top Rated Local® modular home building in the state.

As an exclusive Redman Homes dealer, Cannon Homes has excellent pricing, building standards, and warranties.

Plus, while supplies last, Cannon Homes Inc. is offering $10,000 off all displays! If you want an amazing modular home at an unbeatable value, take advantage of this deal today.

Check out our modular homes and visit our modular home builder in Marion today!