Financing Options

We build and ship — but here's what you need to know about financing a modular home in the US once it's installed by your contractor.

How to Finance a Modular Home

Once your contractor places a Capsul home on a permanent foundation with proper permits and a Certificate of Occupancy, it can qualify for standard residential financing — just like a site-built home. Here are the common pathways:

Option 1

Conventional Mortgage

Standard mortgage through any bank. Once installed on a permanent foundation with CO, modular homes are appraised and financed like stick-built homes. 5–20% down, 15 or 30-year terms. Talk to your lender about their specific requirements.

Option 2

FHA Loan

Federal Housing Administration loans accept modular homes on permanent foundations. As low as 3.5% down. More flexible credit requirements. Must meet FHA property standards — your contractor and lender coordinate this.

Option 3

VA Loan

Available to eligible veterans and active-duty military. 0% down payment, no PMI. Modular homes on permanent foundations qualify. One of the best financing options for qualifying buyers.

Option 4

USDA Rural Development

For properties in USDA-eligible areas (many suburban and rural locations qualify). 0% down. Income limits apply. Works well for rural Capsul installations.

Option 5

Construction-to-Permanent Loan

Covers the build phase and converts to a permanent mortgage after CO is issued. Single closing. Your lender coordinates with your contractor on draw schedules.

Option 6

Cash / Personal Loan / HELOC

For our more affordable ADU units ($38K–$52K), many customers pay cash or use a personal loan or HELOC from their existing home. Simplest pathway with fewest requirements.

Important NoteFinancing eligibility depends on your local building approvals, not just the home itself. Your contractor handles permits, foundation, and CO — once those are in place, you're mortgage-ready. We provide all product specs and engineering documentation your lender needs. Talk to your lender early in the process.
Home PriceDown PaymentLoan AmountEst. Monthly (30yr)
$52,000$5,200 (10%)$46,800~$296
$89,000$8,900 (10%)$80,100~$506
$112,000$11,200 (10%)$100,800~$637

Estimates at 6.5% APR. Does not include taxes, insurance, or PMI. This is not a loan offer. Actual rates depend on credit, lender, and market conditions.

Lenders Who Finance Modular + Tiny Homes

For buyers using a personal loan rather than a mortgage, the lenders below actively offer products for modular homes, tiny homes, and ADUs. Personal loans fund quickly, require no down payment, and have no mortgage-style documentation burden — ideal for our lower-cost ADU and single-module units.

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Independent suggestions only. Capsul has no affiliation or referral arrangement with any lender below. We are not licensed to provide financial advice. Use these as a starting point — compare offers and consult a licensed adviser before applying.

LightStream
Tiny Home Specialist

A division of Truist Bank — one of the few major lenders with a dedicated tiny home loan product. No fees of any kind, rate-match guarantee, and same-day funding available. Best for buyers with good to excellent credit.

Loan amount$5,000 – $100,000
Rate from~8.24% APR (fixed)
Terms2 – 12 years
FeesNone
Min. credit scoreGood to excellent
Funding speedSame day possible
Visit LightStream →
US Tiny Loans
Modular + ADU Specialist

Nationwide specialist lender for tiny homes, modular homes, barndominiums and ADUs. Licensed in 48 states. Offers consumer purchase loans, one-time-close construction loans, and equity/renovation loans specifically for ADU installations.

ProductsPurchase, construction, ADU
Coverage48 states
Loan typesConsumer + construction
SpecialityModular, tiny, barndominium
Construction loansOne-time close available
Visit US Tiny Loans →
SoFi
No Fees · Good Credit

High loan limits, no origination fees, no late fees, no prepayment penalties. SoFi personal loans can be used for modular and tiny home purchases. Includes member benefits like free financial planning and rate discounts for existing customers.

Loan amount$5,000 – $100,000
Rate fromVaries by profile
Terms2 – 7 years
FeesNone
Min. credit score~680+
PrequalifySoft pull (no credit impact)
Visit SoFi →
Upgrade
Lower Credit OK · Cosigner OK

Accepts lower credit scores than most comparable lenders, and allows cosigners — useful if you're self-employed or your credit profile is non-standard. Multiple rate discounts available. A solid option if LightStream or SoFi are out of reach.

Loan amount$1,000 – $50,000
Rate from~9.99% APR
Terms2 – 7 years
CosignerYes
Min. credit score~580+
PrequalifySoft pull (no credit impact)
Visit Upgrade →

Rates are indicative and subject to change. Verify all terms directly with each lender before applying. This is not a financial recommendation.

Questions About Financing?

We can help connect you with lenders experienced in modular home financing.

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