Step 1 – Initial Research
- Start by forming a basic idea of the kind of home you’re interested in, whether it’s a modular or manufactured home, and think about the general location where you’d like to build.
- Look into land prices if you’re planning to buy a lot.
- Take a trip to a home builder or a dealership that specializes in modular or manufactured homes to explore floor plans, sizes, features, and pricing options.
Step 2 – Reach Out for Loan Pre-Qualification
Here’s what to expect in this step:
- Fill out a loan application
- We’ll review your credit report
- Your Loan Consultant will give you a checklist of the income and asset documents needed for pre-qualification
- Be prepared to provide additional details if requested, as other credit conditions may also apply
Step 3 – Pre-Qualification & Establishing Your Project Budget
After your Loan Consultant reviews your credit, income, and asset information and confirms you meet the credit requirements, you’ll receive a pre-qualification letter. This letter is essential if you’re planning to make an offer on land.
Your overall project budget will cover the cost of the land (or its payoff, if already owned), site improvements, and the full construction of your home. This is a turn-key project managed by the builder—self-help or personal labor is not permitted.
Your Loan Consultant will also explain what funds you'll need to bring to closing, including:
- Closing costs
- A homeowners insurance policy
- Property taxes (if applicable)
*In some situations your builder may be able to contribute funds towards your closing costs. Construction interest payments will be required during the course of construction, except on VA OTC Loans. You will be required to make monthly, interest-only payments during construction and up to completion.
Step 4 – If You Own Land or Are Receiving Land as a Gift
If you already own the land, please provide the following:
- A copy of the deed
- A closing statement if the land was purchased within the past year
- If there’s an existing loan on the land, contact details for the note holder
If the land is being gifted to you, we’ll also need:
- A signed gift letter
Step 5 – If You’re Purchasing the Land
Before you submit an offer, your Loan Consultant should speak with your real estate agent. The land purchase will not have a separate closing — it will be finalized and funded together with the construction agreement.
Land Purchase Requirements:
- Escrow must close no sooner than 90 days from acceptance
- Appraisal contingency should allow at least 60 days
- Inspection contingency must provide at least 45 days
- If possible, use the builder’s preferred Title & Escrow Company
- The land seller should be open to extensions, if needed
- It is recommended that the property boundaries and corner of the lot are marked
- Percolation testing may be required prior to septic system installation or land development; however, requirements vary by state and local jurisdiction. Please consult with your Loan Officer to determine if a percolation test is necessary in your area.
Once the offer is accepted, send the signed Land Purchase Agreement and any addendums to your Loan Consultant.
Step 6 – Coordinating with Your Builder or Home Dealer
Collaborate with your Builder or Modular/Manufactured Home Dealer to finalize the full design and construction costs of your home, along with all necessary land improvements—such as permits, grading, foundation work, utility connections, and more.
- This phase can take anywhere from a few weeks to several months, depending on how complex your build is.
Builders or dealers usually require a deposit for the home itself, as well as upfront payment to prepare the detailed site construction estimate. In some cases, permit fees must also be paid before the loan closes.
- Any out-of-pocket expenses you cover for the project may be eligible to count toward your down payment.
Once all costs are confirmed, the Builder or Dealer will provide us with the finalized pricing for both the home and the site-related construction work.
Step 7 – Finalizing the Builder’s or Home Dealer’s Agreement
- Review and sign the Builder’s or Home Dealer’s Contract, including the Floor and Elevation Plans, Specifications (all pages), and any other required construction documents.
- Once these are signed, we will order the appraisal, which you will need to pay for upfront.
The loan is expected to close roughly 45 days after the appraisal has been ordered.
- At closing, the land purchase will be paid off, and your builder will begin the construction process.
- During construction and until completion, you will make monthly interest-only payments, except if you have a VA One-Time Close (OTC) loan.
Be sure to plan ahead for these monthly payments.
Step 8 – Completion of Construction and Loan Repayment
- After the construction is finished, your loan’s interest rate might be adjusted to a lower rate based on current market conditions, but it will never increase beyond the rate locked in at closing.
- Once you receive the Occupancy Permit, you’ll be able to move into your new home, and your regular monthly mortgage payments will begin 30 days afterward.