I am trying to education myself for a client. I am learning that certain lenders will do 100% financing of land w/a prefab home. Another words, a potential homeowner can buy the land and get the prefab loan in a "construction loan" and once the home is placed on the land, th elender will give them a traditional mortgage. Wow this seems really new and different to me.

1. Is there a difference in a prefab home vs. a manufactured home? Are those terms interchangeable?

2. I am a little confused. I thought for a land only deal, the lender would want 50-60% loan to value; but it seems if you build a prefab house on the land, certain lenders will help you buy the land if you can get a construction loan at 100% ltv (land plus prefab house).

If you know anything about this, please educate me. I heard Indymac and Countrywide offer these type of loans for prefab homes.