Construction Financing

The mortgage market is showing signs of improvement, which means more home buyers will be able to realize their dream of owning a Blu home!

Some of our customers ask whether building a Blu home requires different financing.  As far as financing goes, building a factory-built Blu home is just like building a new site-built home—it requires two types of financing in order to make your dream of a new home a reality.

First, the homeowner must procure construction financing—a short term, interest-only loan that will give the homeowner the funds to pay Blu and the site contractor the costs of construction. Second, when your Blu home is built and ready for occupancy, the homeowner will need to obtain permanent financing—a long-term loan that replaces the construction loan, giving the homeowner an extended term (usually 15 or 30 years) by which he or she can repay the loan with a monthly payment of principal and interest.  In many cases, the same lender works with the homeowner on both loans—and some lenders even offer a one–time closing construction/permanent loan mortgage product.

Does Blu create a better homebuilding experience? You bet! Blu’s factory construction process can be more attractive to lenders than site-built construction, because homeowners are (i) unlikely to experience budget increases or schedule delays and (ii) the quality is predictable—all of which is music to lenders’ ears! And now Blu is working to create a better financing experience as well.

Blu is working with its lending partners to make sure Blu customers have great lending options in their state.  US Bank (serving 26 states) and M&T Bank (serving 4 states) are two of the newest lending partners that can help you build your Blu home.

As Blu continues to add lending partners and build its lending network, Blu customers should keep in mind a couple of important tips:

Contact us today—and we can start the process of selecting your Blu home, outlining budget scenarios and introducing you to one of our great lending partners. We look forward to working with you!


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