Many banks remain leery of financing precut homes, but many manufacturers and their representatives have arrangements with local banks to assist the home buyer. A good track record has developed so banks become partners in the process with primary-and second-home financing.
Because most banks like to have a licensed contractor on the job, this could add to the cost of construction even if the owner lends a hand. But shop around for the best deals with banks familiar with precut homes.
Still common is the two-phase loan: a short-term loan for construction and then a long-term mortgage to pay off the construction loan. A fee comes with each loan.
Many of the larger companies, with representatives around the country, require all the money up front before a nail is pounded. But smaller companies can be more flexible.
"We did need a certain percentage of the money up front," says Vernie Kinyon, "but we owned the property with a foundation and a septic system, so we had a little equity going in."