Land/Home Financial Services, Inc. specializes in financing manufactured and modular homes on permanent foundation systems. We offer a very unique stage funding construction loan program.

We offer both the one-close and two-close option. Our process for the two-close is a little different than other lenders, so we have highlighted the differences in our three-step process to help you understand our program.

Step 1:
The formal loan process begins when we receive a signed loan application, income and asset verification. Land/Home Financial Services, Inc. orders a preliminary title report and proposed construction appraisal (not a land appraisal). When these items are received, the loan is underwritten and approved with closing conditions. A loan approval letter is faxed to the retailer, mailed to the borrower, and a copy of the package is sent to the construction department. This approval is for the permanent financing. For either the one-close or two-close option, when you receive an approval, your borrower also automatically qualifies for the interim construction loan financing.

Step 2:
You and the borrower will be contacted by our construction loan department to verify funds needed to pay off land (if necessary), on-site construction, and the home. The loan will then we structured and estimated closing costs computed. The construction loan department requires the following information prior to sending loan documents:

1. Manufactured or Modular Home Purchase Order signed by the Retailer and Borrowers.
2. Complete “on-site construction” contract signed by the General Contractor and Borrowers.
3. General Contractor, Borrowers and Retailers sign a Construction Draw Schedule to acknowledge the disbursement schedule during the construction project.
4. Real Estate Purchase Order contingent upon proof of availability of water, acceptable perk test, and/or Copy of Health Authority approval for septic system design, specific to the site.
5. Approval from the Building Department for the project (in regards to set-back issues and design issues on residential lots) which includes site-specific engineered plans for the foundation system.

We then schedule and conduct the closing (1 of 2 for the two-close option), and the construction project begins. Interest will accrue on only the funds that are disbursed. Interest only payments will be deducted from the borrower’s interest reserve account (included in the loan amount) on the first of each month during the construction period. Interest payments will continue to be taken from the interest reserve until either the construction loan is paid off (in the case of the 2-close option) or the reserve no longer has the required funds to make the complete payment. In this case the borrower is responsible for the residual payment amount.

Step 3:

When the project is near completion, the loan package is updated. All conditions on the loan approval letter are required at this time (this includes the county finals and appraiser’s final inspection (442) or FHA compliance inspections). For the one-close option, a Loan Modification is executed by the borrower and the permanent loan begins. For the two-close option, the figures are finalized, the interest rate is locked in (usually 30-60 days prior to project completion), and the permanent loan documents are sent to the escrow or title company. There is a 3-day rescission period from the day the documents are signed (one-close option) until the day we can fund the loan. The loan records the following business day.