RJ Jaramillo has been originating residential mortgage loans since 1989. He consults with clients nationwide through Fairway Independent Mortgage Corporation, licensed in 48 states, and his specialization sits at the intersection of alternative housing structures, construction sequencing, real estate classification, and construction-to-permanent financing.

The first step in working with RJ is never a loan application. It is a structured conversation.

Most modular project delays trace back to one root cause: land position, manufacturer selection, and financing structure were not aligned before contracts were signed. RJ's consulting process ensures those three variables are evaluated together, early, so the project is built on a solid strategic foundation before a single dollar is committed.

The Real Cost Structure of Modular Construction

One of the most common misconceptions buyers bring to a modular project is focusing exclusively on the factory price per square foot. The modular unit itself is only part of the total investment — and in some cases, not even the largest part.

Site development is where many borrowers are caught off guard. A complete modular project typically involves permanent foundation work (crawlspace, slab, or basement), utility trenching and hookups, septic or sewer connections, grading and land preparation, crane access for module placement, and local inspections leading to a Certificate of Occupancy. Even though the home is built in a factory, it must fully comply with local jurisdictional requirements once it arrives on site.

A modular project is still a construction project. RJ's consulting ensures borrowers understand total project cost — not just the factory invoice — so there are no surprises mid-build.

Financing Strategy: The One-Time Close Construction Structure

Because modular homes are classified as real estate, they qualify for construction-to-permanent financing. In most cases, RJ structures modular projects using a One-Time Close Construction Loan, which consolidates land purchase or existing land equity, the modular unit cost, site preparation, licensed contractor build-out, permits and soft costs, and conversion to a permanent mortgage — all within a single closing.

This structure eliminates the risk of funding gaps, avoids duplicate closing costs, and removes the need to requalify at the end of the construction phase. For qualified borrowers, conventional construction options may allow down payments as low as 5%. VA construction loan options may also be available for eligible veterans. All programs are subject to specific qualification standards and underwriting guidelines.

Proper project structure from the outset is what makes this financing path work smoothly.

Manufacturer Evaluation

Not all modular manufacturers meet the same standards — and lender acceptance is not automatic. Each manufacturer is evaluated on a case-by-case basis to confirm IRC compliance, structural integrity, completeness of construction documentation, lender acceptance, and appraisal feasibility.

RJ is not aligned with or tied to a single factory or brand. The priority is always structural compliance and financing viability, not manufacturer relationships. That independence is an important part of what makes the consulting process genuinely useful.

Modular Homes in Context

Understanding where modular fits relative to other alternative housing categories helps buyers make better decisions about which path is right for their land, their lifestyle, and their long-term goals.

Compared to tiny homes on wheels, the difference is foundational. A tiny home on wheels is typically classified as personal property, which means different financing options, a different appraisal method, and different long-term equity treatment. If you are exploring portable housing, RJ's Tiny Homes on Wheels advisory page covers that path in detail.

Compared to barndominiums, modular homes typically integrate more seamlessly into suburban and infill neighborhoods while still offering the construction efficiency of a factory-built process. Barndominiums use steel-framed construction and tend to appeal most strongly to rural and acreage buyers. If you are evaluating a steel-frame build, the Barndominium Strategy Guide is the right starting point.

Compared to traditional site-built homes, modular construction offers meaningful advantages in timeline and predictability. Building indoors eliminates weather-related delays and compresses the overall schedule, while the finished product maintains the same structural and appraisal characteristics as a conventional home.

Common Modular Financing Mistakes

The mistakes RJ sees most often are entirely preventable with the right guidance in place before the project begins. Confusing modular with manufactured housing leads directly to the wrong loan type and misaligned appraisal expectations. Using multiple loans — a land loan, then a purchase loan, then an installation loan — creates duplicate closing costs and coordination risk. Purchasing land before confirming feasibility can lock a buyer into a site that doesn't support a modular build. Hiring contractors without verifying lender qualification is a quiet but serious project risk. And underestimating site development costs remains one of the most consistent sources of mid-project stress.

Each of these errors creates delays that proper sequencing prevents. That is the purpose of the consultation.