First Steps
The Application Process
Items Needed at Application
Locking Your Rate
Settlement
Construction
Modification
Servicing

The Application Process for Modular Homes

1. A telephone interview takes place between you and the System Built Home Specialist.
2. All items checked under the Items Needed at Application should be available at this time.
3. One hour should be allowed to complete the loan application.
4. Once the application is completed, the System Built Specialist will discuss policies and procedures concerning locking the interest rate on your permanent mortgage or letting it float with the market.
5. Once you've decided to lock or float your interest rate, your application package with all necessary disclosure documents is sent to you for signature(s).
6. The application package will be sent by U.S. mail.
7. After review by you, all documents are signed and returned along with copies of the information stated in "Items Needed at Application".
8. After the documents have been received, the System Built Specialist will send the package to the Processing Department to be assembled.
9. The Processing Department assembles and prepares the documents for Underwriting review.
10. After all documents are reviewed and all guidelines are met, the underwriter issues an approval.
11. Once the loan is approved, an appraisal is ordered. Upon receipt, it is sent to Underwriting for approval.
12. After appraisal approval, the loan package is sent to the construction department for a customized disbursement schedule.
13. Once the disbursement schedule is completed, the closing process is initiated.

Items Needed at Application for Modular Homes

The following is a list of items usually needed at application for rapid and proper processing of the loan. By having these items at application, we save you time by eliminating the need for written employment verification from your employer, verification of credit obligations, and verification of cash on deposit and other bank accounts. This speeds your approval because we are not sending and receiving verifications. Most loans are approved in 1 week.

1. An application fee (plus a lock fee "some percent of the loan amount" if applicable)
2. Most recent 12 months' mortgage history (canceled checks or last 12 months' rental history)
3. 1 month of most current pay stubs from all current employers
4. 2 years of most recent completed and signed federal tax returns and W-2's for all employers
5. Name, addresses, dates of employment and salary for last 2 years
6. Most recent 3 months' bank statements (all accounts)
7. Social security numbers (if receiving pension, please provide award letter and most recent payment receipt)
8. Fully executed gift letter (if applicable) including copy of certified check or treasurer's check from a blood relative and a copy of the deposit slip
9. Sales agreement on the land and legal description of the property (if applicable) or a copy of your deed
10. Complete set of plans, specifications, and a fully executed builder's contract, plus a record of deposits given to contractor/modular home manufacturer
11. Open loans - addresses, account numbers, balances and monthly payments or most recent statement, if available
12. If self-employed, complete set of most recent tax returns for last 2 years (1099's, K-1, etc.), plus year-to-date profit and loss statement

Locking Your Rate for Modular Homes

It is crucial to understand both the benefits and process of locking your interest rate.

An extended rate lock during construction can be extremely helpful, because it gives you the safety and security of a locked interest rate AND the flexibility of deciding when the permanent mortgage rate is locked. Lock-ins are taken at any time from two days prior to mortgage application until 5 business days prior to a scheduled modification.

1. The construction loan interest rate will be automatically locked for a period of 3-12 months at the time of application. This rate is the construction loan interest rate published for that day.
2. The permanent mortgage rate can be locked for 1 to 9 months. Depending on the length of time for construction and when the permanent rate was locked, you will want to ensure your permanent rate lock is longer than the length of time projected for construction.
3. If you elect not to lock your permanent mortgage rate, it will float with current market rates until a call is placed by you to the Mortgage Company to lock in your interest rate. If a call is not placed, your permanent loan will automatically lock at the current market rate 1-5 business days prior to modification.
4. During construction, you have the ability to float-down your permanent locked rate to the current market rate and re-lock. (Please note: There is a fee involved every time you elect to float-down your permanent locked rate.)

Settlement for Modular Homes

1. Construction-to-permanent loans normally have only one settlement and one set of closing costs. At settlement, you will be signing all of the loan documents for both the construction and permanent mortgage loans. Your loan will modify from a construction loan to a permanent mortgage when your home is completed. You will have a separate set of papers to sign at modification; reaffirming the terms of your original settlement and setting your permanent loan in place to begin making regular payments of principal and interest.
2. After completion of the draw schedule from the construction department, the file is sent to an the mortgage company Closing Agent who prepares the documents for settlement.
3. The Closing Agent schedules settlement with the Attorney or Title Company of your choice.
4. At settlement, closing costs are paid, all documents are signed, any balance left on the land purchase is paid off, and the construction phase of your loan is initiated. A portion of the closing costs may not be paid until modification. You will be required to sign an Acknowledgment of Modification Fees notifying you of what your estimated fees will be.

Construction for Modular Homes

1. The Construction Loan Department of the mortgage company normally has a customized Construction Disbursement Schedule.
2. Flexible disbursement schedules can be prepared to accommodate any builder.
3. Requests are made for disbursements by you or your Builder/Contractor by contacting the Construction Loan Department of teh mortgage company upon completion of each phase of the work listed on the Construction Disbursement Schedule.
4. Pre-curbside delivery for logs, modular unit or panel package deliveries eliminates the need to make arrangements to have the check on site for the delivery of home.
5. Some mortgage companies allow for a disbursement associated with the delivery of a modular unit to be paid directly to the manufacturer.
6. Inspections are ordered within 24 hours after receiving written or verbal requests from you or your Builder/Contractor.
7. An inspection by a professional Inspector is completed prior to all disbursements being released.
8. Upon receipt of the inspection report, the scheduled disbursement will be issued (assuming state required title work is completed).
9. Quick turn-around for all disbursements ensures progression of work.
10. You normally make monthly, interest-only payments to the Mortgage company, only on the funds that have been disbursed to the Builder/Contractor.

Modification for Modular Homes

The modification phase occurs when construction of the home is complete and a final inspection has occurred. You are encouraged to contact the Construction Loan Department of the mortgage company, ten (10) days prior to the anticipated completion of the home to arrange the modification of the construction loan to a permanent mortgage.

1. The modification process is reviewed with you by the construction loan administrator.
2. The mortgage company's Construction Department schedules the property's final inspection prior to the modification date.
3. Fees required for modification are disclosed prior to your receipt of the modification package.
4. The Construction Department prepares the modification package and forwards it to you via "overnight" mail after all conditions have been met.
5. You complete the modification package at home.
6. You send the fully-executed modification package back to the mortgage company within a specified period set by the mortgage company.
7. Interest-only payments stop and the regular monthly mortgage payments begin after modification has occurred.

Servicing of Modular Homes

1. The Servicing Department of the mortgage company may service your loan after it has modified to a permanent mortgage.
2. Monthly Billing: A billing statement for all non-auto drafts will be provided monthly a period of 10-18 days before your due date. Payments are due normally on the first of the month and are usually mailed back with the statement.
3. Automatic Deductions: many mortgage ccmpanies want to make it easier for you to make your mortgage payments, save on postage and check costs, and ensure timely payments for good credit. Normally a FREE service, this allows your payment to be deducted from your checking, savings or money market account if your financial institution is a member of the Automated Clearing House (ACH).
4. Escrow Analysis: Annual analysis of your escrow account to determine if there are sufficient funds in your account to meet future payments for taxes and insurance.
5. Regular Tax Bills: If bills are received directly from your taxing authority, and you have an escrow account, please forward it to us as soon as possible, with your account number on it. This will ensure timely payment and avoid any penalties that may be charged to you.
6. Interim Tax Bills: These are not paid from your escrow account. If you received interim bills, please pay them directly to your taxing authority.
7. Homeowner Insurance: The mortgage company will normally require that Hazard Insurance coverage be maintained on the property for at least the amount of the outstanding balance. We urge you to maintain an adequate amount of insurance, and in any additional amounts as you deem necessary to fully protect your equity in the property. Failure to renew coverage may result in the mortgage company obtaining coverage to protect their interest in the mortgage, for which you will have to pay. Certain properties located in flood zones as determined by the Federal Emergency Management Association will require you to obtain and maintain flood loss insurance.

Below is a timetable of what to expect when it's time to build your modular home. Please note that these are only estimates.

Site Plan :
After all necessary permits have been obtained, you can now turn to your site plan to mark where your house will be built on your land. This is done with the help of the site plan and your contractor.

Time frame: this can be completed within about 2 hours.

Excavation and Groundbreaking :
Clearing of the land ensures that enough space is available for tractors and forklifts to operate during construction. At this time your driveway may also be cleared to allow access for deliveries. The excavator will also dig out for the foundation and basement (if applicable). This is typically done after the land has been cleared and within the same time frame as the excavation.

Time frame: 1 to 7 days.

Utilities :
The sub-contractors will need water and temporary electric service installed. If you've chosen a well or septic system, check with your sub-contractor to see if this is the time to have them installed.

Time frame: 1 day.

Footers :
Your concrete sub-contractor will pour your footers according to your plans and specs. After this stage an inspector may be required to inspect and check the footers to ensure they meet with township or county building codes.

Time frame: 1 to 2 days.

Foundation :
Your home can be built on almost any type of foundation: brick, block, concrete, pre-cast or all-weather wood. Your masonry sub-contractor will construct your foundation as specified in your plans and specs. Your foundation may include a full basement or concrete slab (if using a concrete slab, all plumbing rough-ins must be complete before pouring your slabs).

Time frame: 1 to 2 weeks, depending on foundation type and sub-contractor.

Delivery and Set of Modular Unit :
Your general contractor or manufacturer will deliver and set the modular unit (using a crane) on your new foundation.

Time frame: 1 to 3 days. (Depending on the number of boxes being set)

Driveway and Walkways :
You may want to wait to start this stage until all construction equipment has been removed to prevent any damage.

Time frame: Up to 4 days.

Button Up :
Interior + Exterior finish and mechanical installations will be completed at this point.

Time frame: 1 to 2 months.(depending on size + design of home)

Landscaping :
Depending on the time of year your home is constructed, you may need to wait until the proper time of year to complete this stage. If you must wait, the appropriate amount of financing will be held in escrow until this can be completed. This will not however, delay modification.

Time frame: Up to 4 days, depending on the size of your lot.