Systembuilt Financing Made Simple!

Financing your system-built home can be easy, but it does have some unique differences compared to financing a home using conventional methods. There are specific lenders who specialize in this type of construction. If you build a system-built home, make sure your lender has specific experience financing these types of homes. While you are free to go with the lender of your choice, Northstar Homes has developed relationships with two lenders because of their expertise and knowledge in system-built construction and the payment schedules that need to be met. Their experience in accommodating your financing needs can offer many unique options for you to choose. When you stop in to Northstar Homes to see our model homes, our design consultants can provide you with contact information for those lenders

Quick steps to your dream home!


Step 1: GET QUALIFIED! To qualify for a systembuilt loan you will need Credit Documents. These Credit Documents include: tax returns, paystubs, W-2’s, bank statements, identification, etc. You will need to have a knowledgeable, professional loan originator take the information from those items and pre-qualify you to determine the amount of financing available to you. Once that amount has been determined, which can happen quickly and confidentially, you can move forward in planning your construction project.

Step 2: The second set of documents you will need to assemble are your Construction Documents. These would include a proposed contract for your building(s), all third-party bids for all site and utility work, floorplans, elevations, and a specifications list. Your construction lender can and will assist you in preparing these in concert with your builder. It is important to know that in order to move quickly with your project, this part of the process must be thorough and accurate.

Step 3: The lender then takes all your information and generates an Initial Construction Budget and does the calculations to make sure it falls inside the parameters of your financing qualifications. This step can usually be completed in 24-48 hours unless additional information is required. The costs to build your new home will include “hard costs” (actual bid estimates of the work to be completed) as well as “soft costs” (closing costs, inspections, etc.) and a “contingency” which is added to make sure that any cost overruns are covered if necessary. Current equity in your land, or any construction costs already paid, can typically be credited as your equity in the project.

Step 4: The lender submits all the plans and specifications for your new house to a local appraiser and has them complete a “Specs and Plans Appraisal.” This will determine the market value of your new home and is required to make sure that your loan meets lending guidelines. The time frame to complete this step is normally around two weeks depending on local demand.

Step 5: Once a satisfactory appraisal has been received, the Specs and Plans Appraisal, Credit Documents, and Construction Budget are submitted to Underwriting for loan approval. The typical turn time for this process is usually 2-4 days depending again on demand and seasonality.

Step 6: When the loan is “Approved to Close”, the lender sets up the closing with a local title company and all the loan documents are signed for the Construction Loan. At the closing, you will be instructed on the process used to make draw requests for the disbursement of payments to your builder and the subcontractors who will build your home. This is a very important step to you and your builder because timeliness is important once construction has started. Your construction loan works as a line of credit during the building process. You use the amount of money in your loan to pay for specific line-item costs established in your Construction Budget. Interest is only paid on the amount of money used.

Step 7: Once your home is fully complete and ready for permanent occupancy, your Construction Loan is converted to a typical Mortgage End Loan for a period of 15, 20, 25 or 30 years. At that time the construction loan is paid off and you make no more interest payments on the construction financing. The payment on your mortgage typically includes principal, interest, taxes, and insurance and it will be due on the first of every month for the duration of your mortgage. It is important to know that you can even lock in the interest rate for your final mortgage at any time during the construction period if interest rates seem like they may go up before your home is completed.

Frequently Asked Financing Questions

Do you have a preferred lender you work with or recommend?

Yes, currently there are two lenders that we recommend because of their knowledge and expertise in helping borrowers through the system-built construction process.  We have lender information available here at our Design Center at 3814 South County Road 5, Loveland, CO.

We are located on the south of Loveland, CO, on the west side of I-25. Across from Johnson’s Corner.

If I already own land can I roll that into construction loan?

Yes, land equity can be counted and credited as down payment into your construction loan.

How long do I have to build my house?

Most construction loans have a 12-month duration.  For larger projects an 18-month option is also available.

Can I use my construction loan to acquire the land for my project?

Yes, if the seller will allow you the time to get all the bids and contracts you will need to get your project approved, then the land can be purchased with the first draw of your loan.

Can I be my own general contractor?

Yes, our preferred lender will consider on a case-by-case basis when to allow for this based on your background and experience in construction projects.

Can I stay in my current home until my new home is built?

In many cases, yes. It is a matter of qualifying for your new financing in addition to your current monthly obligations. 

Can I do a one-time close?

Yes, our preferred lender does has both one-time and two-time products available.
To reach our preferred lender for complete details, or to pre-qualify for financing your project.

As the nation’s largest modular homes manufacturer, it’s no surprise that we have over 100 Modular Homes to choose from. Browse our floor plans and property specs to find the home that is right for you.


We have five different categories of custom-modular homes: Ranch-Style Modular Homes, Cabin Homes, Cape Cod Homes, Two-Story Homes, and Multi-family Homes. Within each category, you can choose from three different levels: Everyday Homes, Enhanced Homes, and Extraordinary Homes. With so many options to choose from, we know that we have your dream home! 


Unsure about a specific part? No worries, all homes are entirely customizable!