The Financial Advantages of Modular Homes

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Modular homes are one of the fastest growing segments of the home building industry. Not to be confused with a manufactured (mobile) home, a modular home is built to the specifications of local building codes with very few restrictions on where they can be placed. They are similar to manufactured homes in that they are constructed off-site; the main difference is that they are built in various “modules” and delivered to the home site where they are put together.

Many younger home buyers are choosing modular homes because of the potential advantages they offer over a traditional home. Here are some of the factors that appeal to new buyers:

Construction Time: Modular homes can be built much faster than homes built on site. Constructing pieces of the home in the factory allow the builder to avoid weather delays and issues with contractor schedules.

Durability: Modular homes have been shown to be as durable (or even stronger) than a home built on site. The main reason is that the materials are constructed to stand up to the rigors of being shipped to the home site where they are put together. Unlike a manufactured home that has already been put together before delivery, modular houses have a much better chance of standing up to high winds and heavier storms. Mortgage

Energy Efficiency: Modular homes include a more modern design that takes into account today’s energy conscious consumer. It is considered a form of “green” construction that when assembled will typically provide the homeowner with lower energy costs.

Customizability: Because you are constructing the home in modules, there are literally thousands of modular designs to choose from. Unlike a manufactured home, consumers have a great deal of freedom and flexibility to customize the design to fit their needs.

Price: Of course, price is among the most important considerations for a majority of homebuyers. In this category, modular homes do quite well. They are more expensive than manufactured homes, but because of the lower construction costs, they come in on average 15% to 20% lower than a comparable home built on-site. The best part is modular homes do not depreciate in value like manufactured homes. They are real permanent structures and will maintain their appraisal value just as well as any other constructed home.

Financing a modular home is the same as financing any other new construction built on-site. Again, as a permanent structure that maintains its value, these homes can qualify for most forms of conventional financing. To learn the ins and outs of qualifying for financing on modular homes, speak to a local mortgage lender.


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