What to Consider When Choosing Modular Homes

There are significant differences in a homes built on site and  modular homes. Knowing the pros and cons of modular home ownership will ensure you are making the right choice for you and your family.

Don't confuse modular homes with a mobile home. Mobile (manufactured) homes are factory made, built on wheels and are delivered to the site attached to semi trucks. The are single story homes only, and come in one to three sections.

Modulars are also built in a factory, in sections, but these sections are placed on a flat bed, by crane and then put together on site, also by crane. They can be one or two story homes.

The Pros of Modular Home Living

• Faster Construction: Unlike on site built homes where weather, inspection and subcontracting delays are common, a modular home is built in a factory so the building time line is more precise. The factory is set up as a large assembly line system in a controlled environment out of in-climate weather. The system of inspections is scheduled based on a set process of construction. All supplies, building materials, and tools are in the factory so sub contractors are not required. This speeds up the building process substantially and allows for a finish date of greater accuracy.
• More Affordable: In construction of on site homes, the longer the project takes, the more it will cost. Economic variables in wages, subcontractors requirements and availability creates a competitive market, thus creating cost variations. Not so with a Modular, since everything is done "in house", which is reflected in the price.
• Greater Selection: When buying an on site home, options are always minimal, unless you are able to afford a custom home. Most Modular manufacturers, however, offer an extensive variety of floor plans, designs and models to choose from. From contemporary to traditional, ramblers to two story, you won't be wanting for choices. Many of the countries finest architects have been retained to Modulars incorporating current design trends.
• Creative Financing: Some Modular home manufacturers provide in house financing so you won't need to find a mortgage lender. One caveat however, this method of financing may be more convenient, but the interest rates may be higher.

The Cons of Modular Home Living

• Land Requirements: Unlike a new home built on site, the builder has already found the land, prepared it and is ready for you to buy. Modular home ownership requires that you find the land, bring in the proper infrastructure such as water, sewer or septic and electric. Some counties have specific zoning restrictions that do not allow modulars to be imported into their communities. This is a labor intensive step in Modular home ownership. Costs can add up quickly, be sure to include this in the budget.
• Lender Restrictions: Some lenders simply do not finance Modular homes. In the past, many folks going this route had to finance with personal loans at crazy interest rates. Today, more lenders are willing to consider your financing needs but only if your home is being placed on a concrete foundation.
• Limited Equity: Though Modulars are slowly increasing in value, they will never have comparable market value as a standard, on site constructed home. This means your equity will not grow as much over time and could "cap" no matter how long you have owned it. The one solidly competitive Real Estate variable is the land your home is sitting on.