A Modular Home is a very popular type of single-family home that can provide more square feet of living space for the price. The home is built indoors in a factory and assembled on the home-owner’s property. It is placed on a permanent foundation, with customary water, sewer, and electrical hook-ups. The home may include additional exterior spaces such as porches, decks, and garages.  We finance Modular homes in a manner that is similar to a traditional stick-built home, once construction is complete.

This loan occurs in two steps. The first is a Construction Loan while the home is being built. Once complete, our Modular Home Loan product provides permanent financing. A description of our loan terms for this type of loan is shown below:

Construction of Primary Residence Modular Home only (no rental or investment property)
While the home is being built, the Construction Loan, has a maximum 12 Month Interest Only period. Loan proceeds are advanced as the home is built, and as construction inspection draws are completed. Escrow is not required during the construction phase. The # of construction inspections must be determined up-front, with a maximum of 12.
Loan Origination Fee of 1.00% of loan amount; minimum $100.00

Payment Example:
(Rate accurate as of January 24, 2024, and is subject to change)

Loan Amount


Interest Rate
(Fixed for 12 months)


Annual Percentage Rate (APR)


Monthly Payments Interest Only

Varying from $1,127.85 to $1,205.63

Construction Loan Origination Fee Example: $2,000.00
Escrow not required during construction phase.

After the home is built and is complete, A Modular Home Loan is provided with the following terms:
15 Year Maturity 30 Year Amortization
Fixed Interest Rate Owner-Occupied Primary Residence

90% Maximum Loan-to-Value
(10% cash down due from buyer)

Based on the Appraised Value, not to exceed 100% of cost
No Loan Origination Fee if paid at closing of construction loan. Escrow for taxes & insurance is required for all residential mortgages in first lien position
First Lien Only Maximum Loan Amount of $499,999

Permanent Financing Payment Example:
(Rate accurate as of January 24, 2024, and is subject to change)

Loan Amount


Interest Rate
(Fixed for 180 months)




Monthly Payments

179 at $1,323.88
Final Payment $149,091.22 (Balloon Payment)
Payment does not include amounts for taxes and insurance premiums, the actual payment obligation will be greater.

Monthly escrow payment is required.  Payment shown does not include taxes, insurance, or HOA dues.  Check these monthly costs on the home you will buy and add them to the above payment to determine your total housing payment.

  • Not available in all states
  • The rates and payments shown do not factor in all your information.  Your specific situation may warrant a higher rate and payment based on credit history, income, and other factors.
  • Some restrictions may apply
  • Not all modular home dealers may be approved
  • Subject to credit approval

First Community Bank of East Tennessee NMLS ID #479234

We are confident that you would benefit from a Modular Home Loan from First Community Bank!

Contact one of our lenders today to learn more!

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