Financing a modular project may connect land, construction, factory payments, site draws, inspections, appraisal, insurance, and a permanent mortgage. The safest comparison examines the full cash-flow and approval structure, not only an advertised interest rate.
Decision snapshot
| Decision | Practical approach | Watch for |
|---|---|---|
| Eligibility | Does the lender finance this construction method and property? | Written program and property criteria |
| Cash flow | When are deposits, draws, retainage, and borrower funds due? | Milestone draw schedule |
| Completion | What converts or closes the permanent loan? | Inspection, title, insurance, and occupancy conditions |
h
Describe the project consistently
h
Compare total financing mechanics
h
Align contracts with the draw process
h
Prepare appraisal and insurance inputs
h
Protect contingency and completion
Action checklist
- Written property and method eligibility
- Complete project budget and borrower cash plan
- Supplier/lender milestone alignment
- Appraisal package requirements
- Insurance responsibility matrix
- Conversion and final-draw conditions
Working worksheet
Record these fields in the same working document so the decision can be reviewed and handed off:
- Lender/program
- Total cash required
- Draw timing
- Rate/extension risk
- Unresolved condition
Common failure patterns
- Comparing rates before confirming project eligibility
- Signing deposit terms that the draw structure cannot meet
- Using required reserves as the project contingency