MODULAR CONSTRUCTION LOANS

Financing for modular construction projects enjoy one distinct difference from site-built construction loans. Because the modular construction greatly reduces a project’s duration as much as 50%, the term of any loan will be much shorter. Additionally, the faster time-to-completion translates into faster time-to-revenue for commercial projects and higher ROI.  

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In all other aspects, modular construction financing is surprisingly similar to site-built construction financing. It helps to keep in mind that “modular” is a construction process, not a building type. It simply refers to a process where materials are delivered to an off-site manufacturing facility, built into modules, and transported to the final site for assembly. The completed building still meets the same building codes and requirements as if it were built on-site. And the real property valuation is ultimately based on familiar parameters such as location, neighborhood, square footage, etc.