Panelized mortgage loan
Have you ever wondered why penalty home loans often cover up to 100 percent of the cost of your home? This is because penalized houses are much quicker and easier to build, since they are made of high-quality pre-made materials. With penalized houses, the most equity you need is ‘sweat equity’ because basically, you are making your own house.
Sometimes the actual down payment you make on a penalized home can be as low as $1000! This is a great way to get closer to owning a home, especially if you are buying land with the home penalized. When the time comes to want to build a more stable traditional house, you already have the land to build it and you can dismantle the penalized house.
With a modular home, you can be assured of the same comforts and protection that a regular home can provide. Since it is pre-manufactured, delivered and installed on site, this type of house also undergoes special quality control and regular inspection by the manufacturing company to assure you of its good quality and durability.
The only downside to modular home penalized home loans is that sizable collateral must be put up before you can use the loan. Penalized homes are considered by banks and lending houses to be a higher risk to invest in because, unlike regular homes, a penalized home does not increase in value as it ages. However, a normal, traditional home is basically collateral in itself, and in the event of default, the value of the mortgage loan can be redeemed by reselling the repossessed home.
