Modular Homes Section

Pros and Cons of Buying a Modular Home

If you are like the majority of new homebuyers you probably have a lot of questions and concerns. What type of house should I purchase? How much will it cost me? How much space do I need? How long will it be before I can move in? All the while you are probably imagining yourself lounging on your new deck, admiring your new perfectly landscaped yard.

If you are in the market for a newly constructed home you might consider checking out modular homes. Modular homes are very similar to traditional homes that are built directly onsite, with the one exception that construction on modular homes is started in a factory. Sections of the house are constructed according to the house design in an assembly line, and then the sections are taken by truck to the building site where the home is completed. The quality of modular homes is just as good as that of traditional homes and the majority look no different than the houses built by other homebuilders.

Choosing the right home is no easy decision. Here is a list of the positive and negative aspects of buying a modular home to make the process less challenging.


  • AFFORDABLE - Modular homes tend to be more affordable than traditional houses. This is because a large portion of the home construction is completed inside a factory. Work is conducted in a controlled climate and there are fewer costly interruptions. When a house is constructed on site work may be interrupted because of poor weather or a delay in the shipment of supplies. Builders on work sites may also have stop work to wait for inspections. The longer a home takes to build the more expensive it will be.

  • FASTER - Because modular homes are prefabricated in factories they take far less time to complete. Portions of the house are built on an assembly line with little or no interruption. Building inspectors are right onsite to look over the work once it is finished. The house is then trucked to the property where construction is completed. You could be sitting in your backyard sipping a cocktail long before your neighbor has his drywall up.

  • VARIETY - When it comes to choosing a modular home you have plenty of designs to choose from. Don't think for a second that your home has to consist of four panelized walls nailed together to create a dwelling. Modular homes come in all designs, both traditional and modern. Some of the best architects in the United States design modern homes and you may be surprised as some of the unique and stunning concepts you will find. These custom prefab homes can blend perfecetly into any location unlike mobile manufactured homes.

  • ENVIRONMENTAL - The majority of modern modular homes are built to be energy efficient using high quality insulation and windows. Homeowners can expect their utility bills to cost less and help the environment.

  • FINANCING - In some cases modular homebuyers can finance their modular homes through a modular homes manufacturers. It is important to inquire about interest rates before agreeing to this type of financing however, because interest rates may be higher with dealers than with many financial institutions. Since modular homes appreciate they are treated the same as a site built home by banks unlike mobile homes which are very hard to be financed since they lose value over time.
  • WAIT TIME - As with new site-built homes you can't move into your new modular home until construction is complete. Unlike mobile manufactured homes, these custom homes are built to your chosen floor plan. While the construction time is usually shorter than it is with traditional homes you may have to find alternative accommodations until your home is complete. It could take as long as two or three months for your home to be move-in ready and ready for living. These custom prefabs do let you move in earlier and be living in your new home faster than traditional homes.

  • LAND - Before you begin building your new modular home you must own the land that it is being built on. Unlike regular homebuilders who typically build houses in subdivisions and then sell them off, most modular home dealers sell homes individually. Depending how popular the area is where you are looking to build you could end up paying upwards of $100,000 for a piece of land.

  • INITIAL MONEY - When you are building a new modular home you must pay the builder in full before the home is completed. This means you have to pay for work as it is being done. This gives the homebuilder the piece of mind that the work will be paid for. In order to do this you will have to either pay for the work using personal savings or obtain a construction loan from the modular home dealer. The loan will cover the work for up to a year. Once the construction is completed the dealer will pay off the loan and a mortgage will be issued.
The same principles of home buying that are applied to traditional houses should be used for modular homes, should you decide to choose that type of home. Your budget should be an important consideration. The more expensive a home is the larger the down payment required. Some financial institutions will accept smaller down payments depending on your credit history so it is important to shop around. House size may also play a role in your decision-making. If you have a large family you may require extra space. Keep in mind that a larger house may also mean higher property taxes and utility costs. As with any home it is important do shop around and do your homework before settling on any lender or builder. Good luck in finding your new home!

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