FAQ
Frequently Asked Questions About Modular Homes
Get answers to the most common questions about modular homes, from construction methods and financing to customization options and resale value.
What is a Modular Home?
A modular home is a prefabricated dwelling constructed in sections (called modules) within a climate-controlled factory. These modules are then transported to your building site and assembled on a permanent foundation. Unlike manufactured homes, modular homes must comply with the same local building codes and standards as traditional site-built homes.
Key Point: Modular homes are considered real property and typically appreciate in value like site-built homes, making them a solid investment.
Modular vs. Manufactured vs. Site-Built Homes
Understanding the differences between these home types is crucial for making informed decisions about financing, insurance, and long-term value.
| Feature | Modular Home | Manufactured Home | Site-Built Home |
|---|---|---|---|
| Building Code | Local IRC codes | Federal HUD code | Local IRC codes |
| Property Type | Real property | Personal property | Real property |
| Foundation | Permanent foundation required | May use wheels/chassis | Permanent foundation |
| Resale Value | Appreciates like site-built | Typically depreciates | Appreciates over time |
| Financing | Conventional mortgage | Chattel loan | Conventional mortgage |
| Construction Time | 3-6 months | 2-4 months | 6-12 months |
Can You Customize a Modular Home?
Yes, modular homes offer extensive customization options. While you choose from manufacturer floor plans, you can typically customize:
- Floor plans: Modify layouts, room sizes, and configurations
- Exterior finishes: Siding, roofing, windows, doors, and trim
- Interior finishes: Flooring, cabinets, countertops, fixtures, and paint
- Architectural details: Vaulted ceilings, bay windows, porches, and decks
- Energy features: Solar panels, high-efficiency HVAC, and insulation upgrades
Many manufacturers work with architects to create fully custom designs that meet your specific needs and preferences.
How Do You Finance a Modular Home?
Modular homes qualify for the same financing options as site-built homes, including:
- Conventional mortgages: 30-year fixed, 15-year fixed, and adjustable-rate mortgages
- FHA loans: Lower down payment requirements (3.5%)
- VA loans: No down payment for eligible veterans
- USDA loans: Rural development loans with no down payment
- Construction-to-permanent loans: Single loan covering construction and permanent financing
Important: Lenders typically require the home to be on a permanent foundation and may require inspections during construction. Work with lenders experienced in modular home financing.
How Much Do Modular Homes Cost?
Modular home costs vary widely based on size, location, finishes, and site preparation needs. Here's a general breakdown:
- Base home price: $80-$200+ per square foot
- Site preparation: $10,000-$50,000+ (clearing, grading, utilities)
- Foundation: $15,000-$50,000+ (slab, crawl space, or basement)
- Delivery and assembly: $5,000-$20,000+
- Finishes and upgrades: Varies significantly
- Land: Separate cost, varies by location
Total costs typically range from $150,000 to $500,000+ for a complete turnkey home, depending on size and location. Modular homes often cost 10-20% less than comparable site-built homes due to factory efficiency.
How Long Does It Take to Build a Modular Home?
The modular home construction timeline is typically faster than site-built construction:
- Design and planning: 1-3 months
- Permits and approvals: 1-2 months
- Site preparation: 1-2 months
- Factory construction: 1-2 months
- Delivery and assembly: 1-2 weeks
- Final inspections and move-in: 2-4 weeks
Total timeline: Typically 3-6 months from order to move-in, compared to 6-12 months for site-built homes.
Are Modular Homes as Durable as Site-Built Homes?
Yes, modular homes are built to the same or higher standards as site-built homes. In fact, factory construction offers several quality advantages:
- Consistent quality control: Factory conditions eliminate weather-related issues
- Precision engineering: Computer-aided design and manufacturing ensure accuracy
- Stronger construction: Modules must withstand transportation, making them structurally robust
- Better materials: Bulk purchasing allows for higher-grade materials
- Third-party inspections: Multiple inspections during factory construction
Modular homes typically last 50+ years with proper maintenance, similar to site-built homes. Many manufacturers offer warranties comparable to or better than site-built construction.
Do Modular Homes Hold Their Value?
Yes, modular homes generally appreciate in value like site-built homes because they:
- Are considered real property (not personal property)
- Are built to local building codes
- Are permanently affixed to foundations
- Are indistinguishable from site-built homes once assembled
- Qualify for conventional mortgages
Resale value depends on location, condition, market trends, and comparable home sales, the same factors affecting site-built homes. Appraisers typically treat modular homes the same as site-built homes.
What Site Requirements Are Needed for a Modular Home?
Your building site must meet several requirements:
- Access: Adequate road width and clearance for delivery trucks (typically 12-14 feet wide)
- Foundation: Properly prepared foundation area (slab, crawl space, or basement)
- Utilities: Access to water, sewer/septic, electrical, and gas lines
- Zoning: Local approval for modular homes and compliance with setbacks
- Soil conditions: Suitable soil for foundation and drainage
- Space: Sufficient area for crane placement and module assembly
Tip: Work with your manufacturer and local contractors early to assess site feasibility and identify any potential issues before ordering your home.
Are Modular Homes Energy Efficient?
Modular homes can be highly energy efficient, often exceeding standard site-built home efficiency:
- Better insulation: Factory construction allows for precise insulation installation
- Tighter construction: Controlled environment reduces air leaks
- Energy-efficient options: Many manufacturers offer ENERGY STAR certified models
- Solar-ready: Many homes can be designed for solar panel installation
- High-efficiency systems: Options for advanced HVAC, windows, and appliances
Some modular home manufacturers specialize in passive house and net-zero energy designs, achieving exceptional energy performance.