Appraisals, Lending, and Taxes….. Oh My!

We are often asked questions from prospective home buyers about how modular homes compare to site-built or stick built homes. The majority of our customers are pleasantly surprised by the answers- especially when it comes to appraisal value, lending, taxes, and insurance.

Take a quick look at some comparisons between each type of home.

Modular Homes Appraise the Same as Their On-Site Built Counterparts Do

Well built, high-quality Pratt modular homes retain their value very well. Our modulars are constructed to exceed site-built standards and must meet the same state and local building codes as site-built houses.

It is impossible to tell the difference between a Pratt modular home and a stick built home once the building process is complete. However, and this surprises many of our customers, the interior of our modular homes are more durable than their site-built counterparts. Not only will your love for your home increase, but when properly maintained through homeowner care, it is common for the value of modulars to increase as they age!

Home Loans for Modular Homes Are the Same as Site-Built Homes.

Modular homes are permanent structures – “real property.” When it comes to securing financing for your new home, there are major advantages to having it classified as Real Property as opposed to Personal Property- such as longer loan terms, special tax deductions, and lower interest rates. Not only do banks and mortgage companies offer many choices for financing your modular home, Pratt Homes offers convenient in-house financing. We can provide you with options for financing your new home and help make your dream of home ownership a reality.

Did you know that Pratt modular homes qualify for all these traditional mortgage options:

  • Conventional fixed rate mortgages (30, 20, 15 and 10 year terms)
  • Adjustable Rate Mortgages (ARM loans)
  • USDA Mortgages with zero money down options
  • FHA Loans featuring low down payments and fairly lenient credit requirements
  • VA Mortgages for eligible military, veterans and surviving spouses.

Insurance Premiums and Taxes for Modular Homes Are the Same as Site-Built Homes.

Pratt modular homes are treated just like site-built homes for insurance purposes, because they are built on a foundation like site-built homes. Also, modular homes qualify for homeownership tax breaks, such as deductions for interest, points, energy efficiency, and property taxes, all of which can save you money when Uncle Sam comes knocking on your new front door.

As you are researching your next home, we suggest you also research lending institutions and insurance companies for those that best fit your unique needs. Don’t forget to ask us about our competitive, in-house financing options. Not only does Pratt Homes have a dedicated, full time, fully staffed finance department, but we currently have two licensed Mortgage Loan Originators to make sure we find the best loan package for your individual needs.